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Determinants of Foreign Direct Investment Inflow in ASEAN Countries: Panel Threshold Approach and Panel Smooth Transition Regression Approach

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Book cover Structural Changes and their Econometric Modeling (TES 2019)

Part of the book series: Studies in Computational Intelligence ((SCI,volume 808))

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Abstract

This study analyzes the factor affecting to foreign direct investment (FDI) inflows in ASEAN countries over the period 2000 to 2016 using Panel Threshold approach and Panel Smooth Transition Regression approach as a tool for this study. In addition, we test the non-linear relationship between the macroeconomic factors and FDI inflow using Akaike Information criteria. The results show that there exists a threshold effect on our FDI regression. In addition, we compare the performance of two non-linear models and find that Panel Smooth Threshold approach perform relative well in our empirical study. The estimation results also suggest that the real effective exchange rate has a negative effect to FDI inflows in good economic condition regimes. Nevertheless, other factors are not show a strong evidence to explain the effect on the FDI inflows.

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Author information

Authors and Affiliations

  1. International College of Digital Innovation, Chiang Mai University, Chiang Mai, 50200, Thailand

    Noppasit Chakpitak & Wilawan Srichaikul

  2. Center of Excellence in Econometrics, Faculty of Economics, Chiang Mai University, Chiang Mai, 50200, Thailand

    Wilawan Srichaikul, Woraphon Yamaka & Songsak Sriboonchitta

Authors
  1. Noppasit Chakpitak
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  2. Wilawan Srichaikul
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  3. Woraphon Yamaka
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  4. Songsak Sriboonchitta
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Corresponding author

Correspondence to Wilawan Srichaikul .

Editor information

Editors and Affiliations

  1. Department of Computer Science, University of Texas at El Paso, El Paso, TX, USA

    Vladik Kreinovich

  2. Faculty of Economics, Chiang Mai University, Chiang Mai, Thailand

    Songsak Sriboonchitta

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Chakpitak, N., Srichaikul, W., Yamaka, W., Sriboonchitta, S. (2019). Determinants of Foreign Direct Investment Inflow in ASEAN Countries: Panel Threshold Approach and Panel Smooth Transition Regression Approach. In: Kreinovich, V., Sriboonchitta, S. (eds) Structural Changes and their Econometric Modeling. TES 2019. Studies in Computational Intelligence, vol 808. Springer, Cham. https://doi.org/10.1007/978-3-030-04263-9_44

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