The Influence of Political Stability on Foreign Direct Investment: A Case Study of South East Asia

Abstract

This paper explores the relationship between political stability and foreign direct investment (FDI) in the context of South East Asia. Political stability is a crucial factor affecting investment decisions, influencing economic growth, and shaping developmental trajectories. Using a case study approach, this research examines several countries in South East Asia to analyze how variations in political stability impact FDI inflows. The findings suggest that countries with greater political stability tend to attract higher levels of FDI due to reduced risks and improved investor confidence. However, nuances exist within the region, where differing political systems and historical contexts shape the investment environment uniquely.