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7 (2) 2017

Impacts of remittances on foreign direct investment in South East Asia - An empirical investigation


Author - Affiliation:
Pham Dinh Long - Ho Chi Minh City Open University , Vietnam
Nguyen Van Duc - Thaison Company , Vietnam
Corresponding author: Pham Dinh Long - long.pham@ou.edu.vn

Abstract
This study investigates the effects of remittances on attracting foreign direct investment flows to South East Asia. Using a balanced panel data set for seven countries in the 2000-2013 period, we find that remittances have a direct positive impact on attracting FDI. Significantly, the result also shows a negative correlation between remittances and FDI attraction in countries with low per capita income and small market size.

Keywords
Foreign direct investment; Market size; Remittances;South East Asia.

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DOI: https://doi.org/10.46223/HCMCOUJS.econ.en.7.2.187.2017
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