Impacts of remittances on foreign direct investment in South east Asia - An empirical investigation

Abstract

    This study investigates the effects of remittances on attracting foreign direct investment flows to South EastAsia. Using a balanced panel data set for seven countries in the 2000-2013 period, we find that remittances have adirect positive impact on attracting FDI. Significantly, the result also shows a negative correlation betweenremittances and FDI attraction in countries with low per capita income and small market size.