SUVANNABHUMI (수완나부미)

Korea Institute for ASEAN Studies (부산외대 아세안연구원)
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Determinants of Economic Growth in ASEAN Countries (2002-2019)

  • Received : 2023.01.05
  • Accepted : 2023.07.04
  • Published : 2023.07.31
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Abstract

This study analyzes the effect of macroeconomic indicators such as foreign direct investment (FDI), domestic investment, trade, inflation, unemployment, population, and governance indicators on economic growth and points out the GDP growth rate in 2002- 2019 among ASEAN countries. Data were compiled from the Worldwide Governance Indicators (WGI) and the World Bank, and the effect of variables on GDP was predicted using the pooled ordinary least squares (POLS), fixed effects model (FEM), and random effects model (REM) methods. As a measure of growth, the GDP growth rate has been taken; FDI and domestic investment, trade, inflation, and governance indicators are positively connected and have an influence on economic growth in these ASEAN countries; domestic investment, population, and unemployment have a negative relationship to economic growth. The macroeconomic indicators and institutional stability of the nation have an effect on its economic growth. Comprehensive institutional stability and well-laid macroeconomic policies are required for growth to materialize.

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References

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