Volume 13 • Issue 1 • PP: 76-82 • 2025
The Relationship between Foreign Direct Investment and Employment Growth in Southeast Asia
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This study examines the relationship between Foreign Direct Investment (FDI) and employment growth in Southeast Asia, focusing on Malaysia, Vietnam, and Indonesia. It uses panel data from 2004 to 2023 and applies frameworks based on Neoclassical and Endogenous Growth theories using Excel and STATA software. The results indicate that job creation is strongly influenced by foreign direct investment, especially in the industrial and service sectors, with Vietnam showing the strongest correlation. These findings suggest that FDI can help countries boost economic development. This research provides valuable guidance for policymakers to attract targeted investments and promote sustainable employment opportunities.
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