Determinants of FDI inflows by industry to asean (Indonesia, Malaysia, Philippines, Thailand, and Vietnam)

Foreign direct investment (FDI) has become more important for the economic growth and development of many countries. FDI can deliver capital, a means to pursue global strategic objectives, and a means to access technology and skills to the host country. Attracting FDI is an important issue of concern to many developing nations. The first objective of this study employs the Gravity Model to explore the determinants of FDI by industry in five ASEAN countries (Indonesia, Malaysia, Philippines, Thailand, and Vietnam). The second objective of this study is to analyze the volatility of FDI from three major home sources (the EU, Japan, and the US) to these five host countries to explore the relationship between FDI volatility and an industry's size of FDI.