The Impact of Global Interest Rate Fluctuations on Foreign Direct Investment: An Empirical Study of a Group of Emerging Asian Countries

Authors

  • Sahar Kareem Gatae Ali Al-Qadisiyah University

DOI:

https://doi.org/10.53697/emak.v7i4.4162

Keywords:

Prices Interest Global investments foreign Direct, countries Asian Emerging, India, Indonesia, Vietnam, The Philippines, Malaysia

Abstract

The research aims to analysis effect Fluctuations Prices Interest Global on flows Investments foreign Live in group from countries Asian The emerging, It is India, Indonesia, Vietnam, The Philippines, And Malaysia, during The period 2010–2024 , And it starts from hypothesis Basic Its meaning that Changes in Prices Interest Global, no Prices Interest American, Affect in decisions Investment International from during Channels Cost head the money, and preferences The risk, and movement Prices Exchange, And I depend Search methodology analysis Data chains cross-section Time ( Panel Data ) using model standard connects between flows Investment foreigner Live and number from Variables Economic College like Prices Interest Global, Growth The economist price Exchange, Inflation, and degree openness The economist And it indicates Results Expected to presence relationship reverse between Prices Interest Global and flows Investments foreign Live about countries place Search with contrast in degree impact between countries, where It looks Indonesia and the Philippines The most sensitive For fluctuations Interest Global, while Show India Vietnam capacity higher on attract Investments despite Changes the environment Finance International, in when It comes Malaysia in level middle from where Influence, And he concludes Search to that Fluctuations Politics Cash Global It is worker Influential in directing flows heads Money about markets The emerging, unless that this impact remains varying Accordingly For the properties Economy Local and extent His integration in Economy Global

Downloads

Download data is not yet available.

References

Alfaro, L. (2021) Foreign Direct Investment: The Role of Institutions and Policies, 1st Edition, Harvard University Press, United States.

Alshubiri, F. (2022). The impact of the real interest rate, the exchange rate and political stability on foreign direct investment inflows: a comparative analysis of G7 and GCC countries. Asia-Pacific Financial Markets, 29(3), 569-603.‏

Bank for International Settlements (2021) Monetary Policy Spillovers and Global Financial Stability, 1st Edition, BIS Press, Switzerland.

Blanchard, O. (2020) Macroeconomics and Global Financial Conditions, 7th Edition, Pearson Education, United States.

Blonigen , B. A. (2021) Foreign Direct Investment and Economic Growth, 2nd Edition, MIT Press, United States.

Borio , C. (2018) The Global Financial Cycle and Monetary Policy Transmission, 1st Edition, Bank for International Settlements Press, Switzerland.

Caldecott, B., Clark, A., Harnett, E., & Liu, F. (2026). How sustainable finance creates impact: transmission mechanisms to the real economy. Review of World Economics, 162(1), 87-119.‏

Calvo , G. A. (2018) Emerging Markets and Global Financial Crises, 2nd Edition, MIT Press, United States.

Caves, R.E. (2018) Multinational Enterprise and Economic Analysis, 4th Edition, Cambridge University Press, United Kingdom.

Dunning, JH (2019) Multinational Enterprises and the Global Economy, 3rd Edition, Edward Elgar Publishing, United Kingdom.

Eichengreen , B. (2019) Global Capital Flows and Emerging Markets, 1st Edition, Cambridge University Press, United Kingdom.

Feenstra , R.C. (2022) Advanced International Economics: Trade and Investment, 2nd Edition, Princeton University Press, United States.

Forbes, K. (2020) Capital Flows and Financial Stability in Emerging Economies, 1st Edition, Princeton University Press, United States.

Hossain, M. S., Voumik, L. C., Ahmed, T. T., Alam, M. B., & Tasmim, Z. (2024). Impact of geopolitical risk, GDP, inflation, interest rate, and trade openness on foreign direct investment: Evidence from five Southeast Asian countries. Regional Sustainability, 5(4), 100177.‏

International Monetary Fund (2023) Global Financial Stability Report: Interest Rate Volatility and Markets, 1st Edition, IMF Publications, United States.

Islam, M. S., & Beloucif, A. (2024). Determinants of foreign direct investment: A systematic review of the empirical studies. Foreign Trade Review, 59(2), 309-337.‏‏

Kenter, J. O., Martino, S., Buckton, S. J., Waddock, S., Agarwal, B., Anger-Kraavi, A., ... & Waddell, S. (2025). Ten principles for transforming economics in a time of global crises. Nature Sustainability, 8(7), 837-847.‏

Kose , MA (2022) Globalization and Business Cycles in Emerging Markets, 1st Edition, World Bank Publications, United States.

Kumari, R., Shabbir, M. S., Saleem, S., Yahya Khan, G., Abbasi, B. A., & Lopez, L. B. (2023). An empirical analysis among foreign direct investment, trade openness and economic growth: evidence from the Indian economy. South Asian Journal of Business Studies, 12(1), 127-149.

Lipsey , R.E. (2020) Foreign Direct Investment and the Operations of Multinational Firms, 2nd Edition, NBER Press, United States.

Markusen , JR (2019) Multinational Firms and the Theory of International Trade, 2nd Edition, MIT Press, United States.

Mishra, P. & Sharma, S. (2020) Exchange Rates and Capital Flows in Emerging Economies, 1st Edition, Oxford University Press, United Kingdom.

Nguyen, V. C. (2023). Monetary policy and foreign direct investment—empirical evidence. Economies, 11(9), 234.‏

Obstfeld , M. (2012) International Finance and Global Interest Rate Spillovers, 1st Edition, Princeton University Press, United States.

Obstfeld , M. (2021) International Macroeconomics: Exchange Rates and Capital Flows, 6th Edition, Pearson Education, United States.

Ofosu-Mensah Ababio, J., Aboagye, A. Q., Barnor, C., & Agyei, S. K. (2022). Foreign and domestic private investment in developing and emerging economies: A review of literature. Cogent Economics & Finance, 10(1), 2132646.‏

Peitz, A. (2025). How Do Economic, Social, and Governance Factors Influence Expat Location Preferences in Southeast Asia–A Case Study of Malaysia, Singapore, Thailand, and Vietnam (Master's thesis, Universidade NOVA de Lisboa (Portugal)).

Rey, H. (2015) Dilemma not Trilemma : The Global Financial Cycle and Monetary Policy Independence, 1st Edition, London School of Economics Press, United Kingdom.

Statham, P., & Sunanta, S. (2026). Cross-Border Intimate Mobilities Between the Global South and North: Resetting the Research Agenda Beyond Marriage Migration. Annual Review of Sociology, 52.‏

Vidiati, C., Al-Ghozali, M. I., Faturrizky, I., Selasi, D., Munajim, A., & Tardjono, T. (2022). Effects of the Money Market and the Need for Knowledge of Interest Rates and the Foreign Exchange Market for Benefit: Evidence In Indonesia. IJOBBA: International Journal of Bunga Bangsa Cirebon, 1(1), 37-60.‏

Downloads

Published

2026-06-09

How to Cite

Sahar Kareem Gatae Ali. (2026). The Impact of Global Interest Rate Fluctuations on Foreign Direct Investment: An Empirical Study of a Group of Emerging Asian Countries. Jurnal Ekonomi, Manajemen, Akuntansi Dan Keuangan, 7(4), 1–16. https://doi.org/10.53697/emak.v7i4.4162

Issue

Section

Articles

Similar Articles

<< < 6 7 8 9 10 11 12 13 14 15 > >> 

You may also start an advanced similarity search for this article.