Panel Data Analysis of the FDI Spillover Effect on Economic Growth of 12 Asian Countries

Using cross-section data relating to a sample of 12 Asian developing countries with relative higher FDI inflows from 1980-2005, we show that FDI by itself contributes to the economic growth. But the regression result of the inward FDI flows as a percentage of Gross Fixed Capital Formation, that is, the variable SHARE is not so robust related to the economic growth. Other factors also work in the economic growth.