Analysis of the Influencing Factors of Neighboring Countries’ Direct Investment in Myanmar

Myanmar, as an emerging economy in Southeast Asia, has been a focal point for neighboring countries' foreign direct investment (FDI). This study delves into the complex web of factors influencing FDI inflows from neighboring countries into Myanmar. Employing a comprehensive research framework encompassing various analytical methods, including Factor Correlation Analysis, Causal Effects Analysis, and Factor Cross-Loading Analysis, the study seeks to shed light on the key determinants of FDI patterns. The research identifies several critical findings. Inflation emerges as a significant driver of FDI, highlighting its role as an indicator of economic opportunity. Additionally, market size proves to be a potent attractor for FDI, suggesting avenues for policy interventions aimed at capitalizing on this correlation. Infrastructure quality, while correlating positively with FDI, warrants further investigation into its causal relationship. Surprisingly, tax and policies did not exhibit a direct influence on FDI, emphasizing the need for deeper research in this area. Lastly, labor availability and skill levels are confirmed as influential factors in attracting FDI. This study advances our understanding of the intricate dynamics between Myanmar and its neighboring countries in the context of FDI, offering valuable insights for policymakers, investors, and researchers.