This study utilizes two approaches to investigate the determinants of foreign direct investment (FDI) into East Asia. The first approach, descriptive in nature, explores how, why and which locational determinants have significantly influenced the FDI trends in the last two or three decades. The second approach, an empirical one, examines the long-run determinants of FDI during the pre-Asian financial crisis period (1970-97), using co-integration and Granger-causation methodologies.
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