Abstract
This study examines the various economic factors effects on foreign direct investment (FDI) inflows into Pakistan, India and Indonesia during the study period ranging from 1971 to 2005. Log linear regression model for each country has been used and the method of least squares has been applied to estimate the various economic determinants effects on FDI inflows. Empirical results revealed that market size, external debt, domestic investment, trade openness, and physical infrastructure are the important economic determinants of FDI. Further, this study found that the empirical results of the economic determinants of India matched with the empirical results of Pakistan excluding two determinates (viz, trade openness and government consumption) while the results of Indonesia do not match with the results of the economic determinants of FDI for Pakistan and India. To enhance more FDI into Pakistan, India and Indonesia, the management authorities need to ensure economic and political stability, provision of infrastructure, peace and security, law & order situation, encourage domestic investment, curtail external debt, and equal importance may be given to appropriate monetary and fiscal policy.
Prof. .Dr. Ling Lukman,, Dr. Muhammad Azam,. (2010) Determinants of Foreign Direct Investment in India,, Journal of Managerial Sciences, Volume 4, Issue 1.
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