The Role of Logistic Performance on Foreign Direct Investment-Growth Link: Evidence from Asian Countries

Abstract

The main objective of this paper is to determine the role of logistic performance as an absorptive capacity in moderating the FDI on economic growth in Asian countries. By applying panel data from 29 selected Asian countries over the 2007 to 2018 period. The main finding of this study indicates that logistic performance is contingent on FDI-growth link in Asian countries, however, based on the marginal effect calculated as proposed by Brambor et al. (2006), logistics performance shows a significant positive impact on inward FDI instead of outward FDI. Finally, the finding shows the role of the institution on logistic performance, the results indicated that a higher quality of regulation will support the performance of the logistic system which can boost economic growth.