The impact of trade openness on FDI inflows in Asian emerging economies

Abstract In many countries, foreign direct investment is becoming one of the most significant components economic development. The Asian emerging market regarded as best places to invest. Many governments have taken steps deal with international trade attract more and open up their economies by implementing several progressive policies creating a free zone. main objective examine impact openness on inflows in employing Panel-Pooled Mean Group Autoregressive Distributed Lag (PMGARDL) model examining direction causality between FDI using Granger test period from 1996 2019. To inflows, we employed potential determinants such GDP, population size, inflation, mobile telephone subscriptions, gross fixed capital formation, total reserve control variables model. As result, has positive statistically long run, but there no relationship short run. indicated that countries unidirectional causal runs investment. line findings, it better promote strong improve climate each country into region.