Factors Influencing Economic Growth in Asean-5 Countries an Empirical Analysis (1985-2020)
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| Format: | Students’ Scientific Association paper |
| Kulcsszavak: | ASEAN domestic investment economic growth fdi inflation macroeconomic private credit |
| Online Access: | http://dolgozattar.uni-bge.hu/58009 |
| Abstract: | Research aim: This study aims to identify and analyze the factors affecting economic growth in five ASEAN countries—Vietnam, Thailand, Malaysia, Indonesia, and the Philippines—over the period from 1986 to 2020. The research seeks to provide actionable policy recommendations to foster sustainable economic growth based on the empirical findings. Research question: To achieve the above research objectives, the study needs to focus on answering the following questions: Question 1: What is the impact of private credit on GDP growth in each country, and what policy measures can be recommended to optimize private credit utilization? Question 2: How do foreign direct investment (FDI) and domestic investment affect economic growth or GDP growth? Question 3: Does increased export turnover lead to higher economic growth? Question 4: Do consumption and inflation variables affect economic growth? Methodology: The study employs a panel regression analysis using several models, including the Pooled Ordinary Least Squares (OLS), Fixed Effects Model (FEM), Random Effects Model (REM), and Generalized Least Squares (GLS). The data analysis was conducted using Stata Software. Findings: After analyzing the data through all four regression models, the GLS model was determined to be the most suitable for this study. The results indicate that key variables—Final Consumption, Domestic Investment, Private Credit, Exports, and Foreign Direct Investment—exhibit a positive influence on economic growth across the ASEAN-5 countries. Conversely, the Inflation variable did not show a statistically significant effect on economic growth. Conclusion: Based on these findings, the study proposes several growth strategies tailored to each of the ASEAN-5 economies. These recommendations aim to enhance private credit mechanisms, attract foreign direct investment, and optimize export strategies to drive sustainable economic growth. |
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