ASEAN strategies on foreign direct investment and prospects for ASEAN-India investments

Abstract

The focus of this paper is on ASEAN's strategies to attract FDI and possible lessons for latecomers to the FDI scene such as India. ASEAN has one of the most liberal and attractive investment regimes among developing countries. As a result, FDI penetration ratios are high compared to other developing regions and ASEAN has succeeded in attracting a disproportionate volume of FDI that flowed to the developing world. Foreign investors are attracted to ASEAN by regional and national political and social stability, sound economic fundamentals, availability of natural resources, labour and skills, infrastructure, cohesive and positive foreign investment policies, and regional trade and investment cooperation schemes. © 1996 JAI Press Inc. All rights of reproduction in any form reserved.