This project studied the impact of political stability on foreign direct investment (FDI) inflows into the countries of the Association of South East Asian Nations (ASEAN) in the period after the 2008 financial crisis using panel data regression. To quantify political stability, we used the 'Political Stability and the Absence of Violence / Terrorism' metric from the World Governance Indicators database of the World Bank (Kaufmann & Kray, 2023). Macroeconomic variables were used to control for country heterogeneity.
The data set ASEAN_FDI_data.xlsx contains the data on the governance indicators and economic variables that were used for the analysis. This R markdown file, ASEAN_FDI.Rmd contains the code used to run the regressions. It produces an html file as the output with the regression results as well as correlation matrices and diagnostic test results.
A detailed report on the project can be found here. This paper was co-authored with Risolat Tashmatova.
Kaufman, D., Kraay A., and Mastruzzi, M. (2010). The Worldwide Governance Indicators: Methodology and Analytical Issues. World Bank Policy Research Working Paper 5430.