Document Type



Published in The Empirical Economic Letters, volume 6 issue 1, p. 25-44, 2007.

Publication Source

The Empirical Economic Letters


Foreign Direct Investment (FDI) has contributed heavily to development of the Association of South East Asian Nations (ASEAN). In this study, the concentration is on five ASEAN countries: namely Malaysia, Singapore, Thailand, Indonesia, and the Philippines. FDI inflows into the ASEAN-5 multiplied spectacularly from 1980 to 1997, but the trend has reversed since the Asian financial crisis in 1997. This paper seeks to examine the contributions of FDI, trade openness, and liberalization to economic growth and development in the ASEAN-5.