Abstract

Purpose: The study aims to define FDI determinants in Asian LLCs to provide helpful insights on most significant explanatory factors of FDI and make policy recommendations. Design/Methodology: This paper uses a panel data approach to investigate FDI determinants in Asian LLCs based on two models, namely RE and GLS, for the period of 1996-2016. Findings: Whereas the impact of market size, trade openness, institutional variables and corporate profit tax on FDI inflow are found statistically significant in Asian LLCs, other variables, namely inflation, human capital, control of corruption and ease of doing business are found to have no significant impact on FDI inflow in Asian LLCs.