  In this paper, we explore the economic, institutional, and
political/governmental factors in attracting Foreign Direct Investment (FDI)
inflows in the emerging twenty-four Asian economies. To examine the significant
determinants of FDI, the study uses panel data for a period of seventeen years
(2002-2018). The panel methodology enables us to deal with endogeneity and
other issues. Multiple regression models are done for empirical evidence. The
study focuses on a holistic approach and considers different variables under
three broad areas: economic, institutional, and political aspects. The
variables include Market Size, Trade Openness, Inflation, Natural Resource,
Lending Rate, Capital Formation as economic factors and Business Regulatory
Environment and Business Disclosure Index as institutional factors and
Political Stability, Government Effectiveness, and Rule of Law as political
factors. The empirical findings show most of the economic factors significantly
affect FDI inflows whereas Business Disclosure is the only important
institutional variable. Moreover, political stability has a significant
positive impact in attracting foreign capital flow though the impact of
government effectiveness is found insignificant. Overall, the economic factors
prevail strongly compared to institutional and political factors.
