The effect of FDI inflows and ICT infrastructure on exporting in ASEAN/AFTA countries

Abstract

This paper explores the impact of both the increase in foreign direct investment inflows and the increase in information and communication technology infrastructure investments on exporting in ASEAN nations (the trade bloc of which is known as AFTA) compared with two other major trade blocs: CEFTA and LAIA. The analyses are based on data from a cross section of countries (26 emerging markets from three trade blocs) over time (from 1995 to 2000). The results show that the increase of investments in ICT infrastructure yields positive and significant returns in the national exporting level only for the ASEAN/AFTA and CEFTA sample. Interestingly, the impact of the increase of FDI inflows on export is significant only in the CEFTA and LAIA samples. These results are discussed in the light of the different economic experiences of these trade blocs, noting that variations are typically present between individual countries. Overall, reflecting the results from this study, research concerned with the determinants of national exporting level should be conducted independently, along with regional and national characteristics.