The impact of economic integration on FDI: applied study on ASEAN

This paper investigates the effect of Regional Integration Agreements (RIA) within (ASEAN), a prime example of new regionalism, on FDI during the period 1995-2008. The inflow investments of ASEAN were concentrated in Singapore (46%). Therefore, the econometric model is applied to the case of Singapore, which is consistent with the theoretical literature that suggests there is a significance positive relationship between FDI and regional integration in ASEAN. Accordingly, we cannot ignore the traditional and non-traditional economic determinants of FDI, but regional integration may play a key role to support these determinants as an umbrella to them.