Foreign Direct Investment and Connectivity: Evidence from South and Southeast Asia

Abstract

Foreign Direct Investment (FDI) plays a pivotal role in strengthening economic growth,industrialization, and technological advancement across South and Southeast Asia. This paper investigates the dynamic interplay between FDI inflows and regional connectivity by examining infrastructure, policy frameworks, and cross-border trade integration. The study explores how
improved connectivity—both physical and digital—acts as a catalyst for attracting FDI, thereby enhancing productivity and competitiveness. Using comparative case studies from countries such as Pakistan, India, Malaysia, and Vietnam, the research highlights policy innovations, institutional reforms, and strategic partnerships that have contributed to regional investment growth. The analysis suggests that FDI-driven connectivity not only accelerates globalization but also bridges development gaps, reinforcing regional economic cooperation and sustainable growth