ABSTRACT
Even with an increasing trend of global foreign direct investment (FDI) flows, regional distribution shows quite different patterns. In particular, there are some views that huge FDI inflows to China since the 1990s might result in produce negative effects on FDI inflows to the Association of South East Asian Nations (ASEAN) area. Thus, the share of the ASEAN as a destination shows a decreasing trend. Even with these various trends of FDI inflows, all countries in the world have endeavored to encourage FDI inflows to their own countries. This is mainly because they expect that FDI inflows promote productivity, employment and exports and therefore contribute to economic growth and development.
