Literature Review

THE AUTHOR

COUNTRY

VARIABLE

METHODOLO
GY

FINDING

Nguyen
Quoc Viet &
Chu Thi
Nhuong

ASEAN

CORRUPTION Panel Data

Corruption
has a negative
and significant
relationship
with FDI inflow

Erdal
Demirhan
and Mahmut
Masca

38 developing
countries

ECONOMIC
STABILITY

Panel Data

Economic
Stability has a
negative and
significant
relationship
with FDI inflow

Rahim M.
Quazi

East Asia and

South Asia

INFRASTRUC
TURE

GLS
methodology
panel data

Infrastructure
has a positive
and significant
relationship
with FDI inflow

Policy Implication
ASEAN governments have to fix this corruption problem
to reduce the extra cost incur by investors and directly
increase the FDI inflows.
Governments also should encourage the people to
reproduce and loosen up the immigration policy to
increase the current population which is favourable for
investors since huge population indicates a large market
for doing business

Recommendation
Add other countries such as Brunei, Myanmar and Laos in the
equation
Number of variables should be added for investigating the effect of
corruption on FDI in ASEAN countries.
Alternative method such as Time Series Data were recommended to be
used in future research

Limitation
Limited number of studies by international academics
on Corruption and Foreign Direct Investment in ASEAN 7
Data covered a seven year period only from 2005
2011.
All data only available for 7 ASEAN Countries