Exploring the Relationship between Foreign Direct Investment and Institutional Quality in Affecting Poverty in Asean-8 Countries

This study explores the relationship between Foreign Direct Investment (FDI) and institutional quality on poverty in ASEAN-8 developing countries from 2005 to 2019. The analysis tool we use is the static panel data model (Fixed Effect). The findings of this study confirm that FDI and institutional quality (political stability and control of corruption) show strong evidence of their relationship to poverty in ASEAN-8 developing countries. Furthermore, FDI has a positive and significant relationship with poverty, and institutional quality (political stability and control of corruption), which has a negative and significant relationship that can reduce poverty in ASEAN-8 developing countries. In line with the study findings, these findings are of greater interest to policymakers. Therefore, policy recommendations are made to help reduce the severity of poverty in developing countries in ASEAN-8