Relevance of Labour Productivity for Sustainable FDI

While there is significant empirical research on FDI in emerging nations, there is relatively less literature on variables influencing sustainable FDI in Southeast Asian nations. Studies that have already been done on Southeast Asian nations tend to concentrate primarily on macroeconomic factors like GDP, inflation rate, trade openness, etc., and have not looked at the role of labour productivity in determining sustainable FDI in Southeast Asian nations. This study analyses the impact of labour productivity on sustainable FDI. To examine the impact of labour productivity on sustainable FDI, panel data was utilized for the period 2000-2019. The other independent variables used are GDP, GDP per capita, trade openness, political stability, Human development index and CO2 emissions. The results established that macroeconomic variables, labour productivity, and environmental variable significantly influence for sustainable FDI in ASEAN economies.