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FOREIGN DIRECT INVESTMENT SURVEILLANCE IN ASEAN: A DECADE REVIEW (2011–2020) OF TRENDS AND ITS CORRELATION WITH LITERACY, LABOR FORCE PARTICIPATION AND UNEMPLOYMENT RATES


Author: Mark Adrian M. Rabara, RN, M PA
Graduate School of Business, College of Business Administration, University of the Visayas, Cebu City.
Published Date: 2026-06-09
Keywords: ASEAN economic, human capital, investment trends, socio-demographic, Southeast Asia.
Abstract:

The focus of this study was on the socio-demographic factors that influence investment trends, with an assessment of the status of Foreign Direct Investment (FDI) in ASEAN member states from 2011 to 2020. To be more precise, the study investigated the distribution of age and sex, adult literacy rates, labor force participation, and unemployment rates among ASEAN countries. It analyzed distribution patterns, assessed statistical differences in FDI among countries, and investigated correlations between FDI and selected socio-demographic indicators. Additionally, it computed the mean FDI inflows per country in US$ million over a ten-year period. The study employed secondary data from the ASEAN Secretariat and other reputable databases, utilizing a retrospective cross-sectional design with trend and correlation analyses. In order to ascertain statistical significance, Pearson's correlation tests and one-way ANOVA were implemented. The results indicated that there were substantial discrepancies in FDI inflows across ASEAN, with Singapore receiving the highest average FDI, followed by Vietnam and Indonesia. The influence of human capital on investment attractiveness was indicated by a modest but statistically significant positive correlation between adult literacy rate and FDI inflows. Although context-specific impacts were suggested by country-level variations, there was no significant linear correlation between labour force participation and unemployment and FDI. The study concludes that FDI in ASEAN is still irregularly distributed and is influenced by both structural economic factors and socio-demographic conditions. It suggests that in order to attract sustainable foreign direct investment, it is necessary to improve regulatory environments, promote sector-specific investments, and enhance education systems. These results provide policymakers with evidence-based insights to develop inclusive, targeted strategies that can promote balanced economic growth throughout the region.