ISSN: 2056-3736 (Online Version) | 2056-3728 (Print Version)

Determinants of Foreign Direct Investment Inflows to Myanmar

Hidekatsu Asada

Correspondence: Hidekatsu Asada, asada@mail.saitama-u.ac.jp

Graduate School of Humanities and Social Sciences, Saitama University, Japan

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Abstract

The fast growth of Myanmar in recent decades was brought by capital accumulation, supported by foreign direct investment (FDI) and productivity improvement. A vector error correction model (VECM) analysis on the determinants of FDI inflows to Myanmar from 2000 to 2018 revealed the existence of a positive and long-term relationship between FDI inflows, and the quality of public sector governance and human capital development. The result underpins the importance of implementing reform measures to create a business-friendly policy framework to attract foreign investors.

Keywords:

  foreign direct investment, public sector governance, human capital development, Myanmar


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