The Impact of Foreign Direct Investment on Economic Growth in East Asian Developing Countries

Abstract

The present study examines the nexus between FDI and economic growth in 10 East Asian developing countries from 2009 to 2023, using the panel data regression method. As a variable of interest, economic growth is regressed on Net FDI inflows, Trade Balance and High- Tech Product Exports as independent variables. The methodology is based on a set of empirical econometric techniques namely Descriptive Statistics, Correlation Analysis, Hausman Test, which contribute to the full robustness of the results. paper’s contribution includes FDI inflow, trade balance and high technology export will have more influence in the region economic development compare to the control variables such as Government Consumption and Control of Corru ption as they are able to provide more insight into the policy and governance influence. This research aims to contribute to the wider debate on economic development strategies in East Asia with empirical evidence and policy lessons.