The relationship between transparency and the attraction of foreign direct investment in ASEAN countries

Mai Thị Hồng Đào * , & Lê Thị Minh Tuyền

* Correspondence: Mai Thị Hồng Đào

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Received: 06 Oct 2017
Revised: 02 Dec 2017
Accepted: 02 Dec 2017
Published: 30 Jan 2018
DOI: 10.58810/vhujs.5.5.2017.5542
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Mai, Đào T. H., & Lê, T. T. M. (2018). The relationship between transparency and the attraction of foreign direct investment in ASEAN countries. Van Hien University Journal of Science 5(5), 101-108.
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Volume 5 - Issue 5 (2017)
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Abstract

Many recent studies have focused on the effects of transparency on FDI inflows. Theoretically, trans- parency can act as either a “grabbing hand” by raising uncertainty and transaction costs or a “helping hand” by “greasing the wheels” of commerce in the presence of weak regulatory framework, which should exert an influence on the attraction of the FDI flow into a country. This study uses dynamic panel data in the 11 years from 2005-2015 in order to provide an empirical test of the impact of the transpar- ency on attracting FDI of 11 ASEAN countries. The results show a strong statistical evidence of the relationship between the transparency and the attraction of FDI flow in ASEAN countries.
Keywords: FDI, transparency, ASEAN

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