Ibrahim, Alisa Binti (2017) The determinants of outward foreign direct investment from ASEAN. PhD thesis, University of Warwick.
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Abstract
The thesis is concerned with the trends, patterns and determinants of outward foreign direct investment from ASEAN. The research consists of three empirical studies. The first study investigates the determinants of ASEAN outward foreign direct investment (FDI) and the extent to which the general motives of outward FDI can explain the phenomenon in the four chosen ASEAN countries (Malaysia, Singapore, Thailand and Indonesia) during the period of 2001-2012. Our results demonstrate that market seeking is the main motivation of outward FDI from ASEAN. We also confirm that host country characteristics play a vital role in investment decisions. Furthermore, after dividing the data into two time-periods, the results indicate that different location determinants and motivations apply over time.
The second study aims to explore the choice of outward FDI location made by ASEAN. More importantly this study examines the location choice based on the perspective of regional characteristics and provides explanations in relation to the motivation of FDI. The challenge lies in the pursuit to arrange location-specific decisions into a uniform theoretical pattern. In general, the results support our previous findings that revealed the importance of market characteristics in determining outward FDI from this region. The findings also show that ASEAN outward FDI is mostly intraregional. Among ASEAN, only Singapore is actively engaging in extra-regional investment. Notwithstanding the importance of other variables in context, corruption appears to display an interesting finding. We found out that corruption did not deter investment from ASEAN but rather has a positive impact.
The third study attempts to explore the determinants of outward FDI from a firm-level perspective. Using firm-level panel data which cover 9331 firms in ASEAN4, we estimate the model that helps us to derive to the conclusion. Our results suggest that the ability to demonstrate strong financial viability is important for the firm to raise investors’ confidence and obtain financial aid. We also discovered that firm size and firm ownership does not influence outward FDI because most of ASEAN-4 outward FDI is intra-regional and that embedded knowledge is less important due to the familiarity of the market.
| Item Type: | Thesis [via Doctoral College] (PhD) |
|---|---|
| Subjects: | H Social Sciences > HF Commerce |
| Library of Congress Subject Headings (LCSH): | ASEAN, Investments, Foreign, Malaysia -- Commerce, Singapore -- Commerce, Thailand -- Commerce, Indónesía -- Commerce |
| Official Date: | September 2017 |
| Dates: | Date Event September 2017 UNSPECIFIED |
| Institution: | University of Warwick |
| Theses Department: | Warwick Business School |
| Thesis Type: | PhD |
| Publication Status: | Unpublished |
| Supervisor(s)/Advisor: | Driffield, Nigel L. ; Glaister, Keith W. |
| Extent: | 189 leaves : illustrations, charts |
| Language: | eng |
| URI: | https://wrap.warwick.ac.uk/103912/ |
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