Determinants of foreign direct investment in South East Asian countries: the role of infrastructure, human development, and economic freedom.

This study investigates the causal relationship between foreign direct investment (FDI) and its determinants in selected Southeast Asian countries, including China, Vietnam, Singapore, Malaysia, Indonesia, Thailand, and the Philippines, from 1990 to 2021. The determinants include infrastructure investment, economic freedom, human development, and economic growth. We examine these FDI determinants' short- and long-run dynamics by employing the Johansen cointegration technique and the Vector Error Correction Model (VECM). The empirical findings reveal varying longterm relationships between the FDI determinants across nations. Additionally, this study establishes the short-run causality between FDI and its determinants in these countries. The study advocates prioritising good governance and robust institutions in the context of policy development. In terms of regulatory framework, policymakers are urged to enhance economic liberalisation, invest in infrastructure, and develop human resources to promote FDI. By exploring these causal linkages, this study contributes to the literature, particularly in the context of Asia. [ABSTRACT FROM AUTHOR]