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AFTA and Regional Strengthening: The Effect of intra-ASEAN Trade on FDI Inflows

Perzlmeier, Jannis Max LU (2022) EKHS42 20221
Department of Economic History
Abstract
his thesis investigates the effects of intra-ASEAN export flows on global FDI inflows into ASEAN member states. A panel dataset including all ten countries of the ASEAN is created to test these effects from 1992 to 2020. Linear regressions without and with fixed effects predict that intra-ASEAN exports have a positive and significant impact on FDI inflows into ASEAN countries. Furthermore, trade flows between the United States and China are used as an instrument for intra-ASEAN exports in a 2SLS estimation to test for a causal relationship between the correlations. However, the causal interpretation is not conclusive due to the weak explanatory power of the instrument. The thesis also predicts that the AFTA is an effective political... (More)
his thesis investigates the effects of intra-ASEAN export flows on global FDI inflows into ASEAN member states. A panel dataset including all ten countries of the ASEAN is created to test these effects from 1992 to 2020. Linear regressions without and with fixed effects predict that intra-ASEAN exports have a positive and significant impact on FDI inflows into ASEAN countries. Furthermore, trade flows between the United States and China are used as an instrument for intra-ASEAN exports in a 2SLS estimation to test for a causal relationship between the correlations. However, the causal interpretation is not conclusive due to the weak explanatory power of the instrument. The thesis also predicts that the AFTA is an effective political instrument to increase FDI inflows into ASEAN member states. (Less)
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author
Perzlmeier, Jannis Max LU
supervisor
organization
course
EKHS42 20221
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Exports, trade flows, FDI, ASEAN, AFTA, regional integration
language
English
id
9093577
date added to LUP
2022-06-28 10:18:03
date last changed
2022-06-28 10:18:03
@misc{9093577,
  abstract     = {{his thesis investigates the effects of intra-ASEAN export flows on global FDI inflows into ASEAN member states. A panel dataset including all ten countries of the ASEAN is created to test these effects from 1992 to 2020. Linear regressions without and with fixed effects predict that intra-ASEAN exports have a positive and significant impact on FDI inflows into ASEAN countries. Furthermore, trade flows between the United States and China are used as an instrument for intra-ASEAN exports in a 2SLS estimation to test for a causal relationship between the correlations. However, the causal interpretation is not conclusive due to the weak explanatory power of the instrument. The thesis also predicts that the AFTA is an effective political instrument to increase FDI inflows into ASEAN member states.}},
  author       = {{Perzlmeier, Jannis Max}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{AFTA and Regional Strengthening: The Effect of intra-ASEAN Trade on FDI Inflows}},
  year         = {{2022}},
}