Exogenous Motivators of the Entrepreneurial Development of the ASEAN Outward FDIS: an Aggregate Observation

Abstract

The study sought to aggregately evaluate the exogenous economic factors of the
entrepreneurial development of the original five Asean foreign direct investments or FDIs as
reinforcement and motivators for expanding business. The five original Asean countries are
Indonesia, Malaysia, Singapore, Thailand, and the Philippines. The study used a multi-variate
regression to aggregately predict the Asean FDIs (y) motivators using a 20 semi-annual
unbalanced panel data based on their potential exogenous economic factors; i.e. Asean
investors’ consumption as % GDP (x1), GDP growths (x2), Asean investors’ international
reserves as a % of GDP (x3), and Asean investors’ exports as % GDP (x4). A multi variation
regression coupled with a qualitative research was used to identify the entrepreneurial
motivators from the exogenous economic factors, and non-parametric statistics to observe the
differences of the Asean FDIs. The observation concluded that the four exogenous economic
variables; the GDP consumption and growth, international reserves and exports, didn’t all
function as motivators to the entrepreneurial development of the five original Asean countries’
outward FDIs, except for Indonesia, Thailand and the Philippines. In addition it was revealed
that there was no significant difference in the FDIs growth rate among these Asean countries. It
was therefore recommended that the exogenous motivators be the bases for entrepreneurial
development toward more Asean outward FDIs, particularly for the objective of expanding
Asean countries’ export business, .strategic subsidiaries, and .more Asean business licensing
and franchising through the Asean outward FDIs.