Modelling the Relationship Among Telecommunication Infrastructure, Foreign Direct Investment and Economic Growth in ASEAN Countries

Abstract

The interactions between telecommunication infrastructure, foreign direct investment and economic growth were investigated for Indonesia, Cambodia, Malaysia, the Philippines, Thailand for the period 2000–2014. The study proceeded with the panel VAR model analysis, impulse response functions and forecast error variance decompositions. This panel VAR reveals that there exists a weak relationship among these three variables. However, when the shocks of these variables are examined, we found that shock of telecommunication infrastructure of ASEAN-5 countries has a greater impact on foreign direct investment and economic development.