Diversity and Development: Foreign Direct Investment in Southeast Asia
Cook, Malcolm; Nair, Vandana Prakash | September 2015
Abstract
Significant foreign direct investment (FDI) inflows to maritime Southeast Asia (and more recently Vietnam) have been the key factor behind the economic development and in the integration into the global economy of the countries located in that region. Southeast Asia’s prospects as a destination for foreign direct investment are bright, and over the last decade, FDI stock per capita in the region has increased five-fold from USD$500 in 2000 to nearly USD$ 2,500 in 2013.1 In this same period, regional real GDP per capita grew only 1.6 times to reach USD$ 2,255 in 2013.2 Using the latest UNCTAD statistics on bilateral foreign direct investment flows into nine Southeast Asian economies, this Perspective will look at what FDI flows tell us about two of the major strategic concerns of Southeast Asian states and of ASEAN:
1. The significance of the relationship for each Southeast Asian state and the region as a whole, between economic development, global economic integration and dependence on (or autonomy from) major extra-regional powers. The growing trade dependence of Southeast Asian economies on China and China’s growing influence in Southeast Asia are the current focus of this foundational regional concern.
2. Further strengthening of integration among Southeast Asian economies and through this reducing the development gap between them. This regional economic virtuous circle is seen to be particularly important for supporting ASEAN unity and centrality.
Citation
Cook, Malcolm; Nair, Vandana Prakash. 2015. Diversity and Development: Foreign Direct Investment in Southeast Asia. © ISEAS Yusof Ishak Institute. http://hdl.handle.net/11540/10999.ISSN
2335-6677
Keywords
Macroeconomic
Macroeconomic Analysis
Macroeconomic Framework
Macroeconomic Models
Macroeconomic Performance
Macroeconomic Planning
Macroeconomic Policies
Macroeconomic Reform
Macroeconomic Stabilization
Economic Development
Economic Infrastructure
Economic Policies
Regional Economic Development
Microfinance Programs
Public Finance
Local Financing
Financial Stability
Financial Sector Regulation
Public Financial Management
Financial System
Financial Statistics
Foreign and Domestic Financing
Financial Inclusion
Foreign direct investment
Enterprises
Financial aid
Economies in transition
Local Finance
Local Government
Insurance Companies
Banks
Social Equity
Pension Funds
Mutual Funds
Financial Aspects
Fiscal Policy
Social responsibility of business
Accounting
Personal budgets
Cost and standard of living
Bank accounts
Credit control
Regulatory reform
Banks and banking
Digital Financial Service
Pension plans
Individual retirement accounts
Employee pension trusts
Investment management
Investments
Multiemployer pension plans
Keogh plans
Individual retirement accounts
Pension plans
Employee pension trusts
Pension trusts
Investment companies
International banks and banking
Stock exchanges
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