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Jurnal Ekonomi Malaysia

59 (2) 2025 –

Impact of digital economy, productivity, natural resources and innovation capacity on FDI flows in emerging market countries
Impak ekonomi digital, produktiviti, sumber alam dan kapasiti inovasi terhadap aliran FDI negara pasaran baru muncul

Azman Hashim International Business
Universiti Teknologi Malaysia
54100 Kuala Lumpur, MALAYSIA.

ivaneva1517@gmail.com

Faculty of Management
Universiti Teknologi Malaysia
81030 Johor Bahru, Johor, MALAYSIA.

n4nantha@yahoo.com

Faculty of Management
Universiti Teknologi Malaysia
81030 Johor Bahru, Johor, MALAYSIA.

yogeeswari.s@utm.my

Department of International Relations
Faculty of Humanities
Bina Nusantara University
Jl. Kemanggisan Ilir III no.45
Jakarta 11480, INDONESIA.

tmursitama@binus.edu

Abstract

This study aims to examine the effects of digital economy (DE), natural resources (NRs), productivity and innovation capacity on foreign direct investment (FDI) flows in 24 emerging market countries (EMCs) from 2000 to 2021. Heterogeneous panel data estimates were used to analyse short- and long-term relationships between dependent and independent variables. The digital index was constructed using the principal component analysis approach. In terms of short- and long-term relationships, FDI flows, progress in DE, NRs and total factor productivity performance have a positive impact. The significance of indicators for FDI sustainability flows in EMCs is demonstrated by the multidimensional and bidirectional causal relationships between FDI and a few variables. The findings of this study provide a comprehensive empirical figure that can be used to enhance strategies for expanding the flow of FDI in short- and long-term periods, ultimately improving economic sustainability for EMCs.

Keywords

digital economy; emerging market countries; FDI; natural resources; total factor productivity
http://dx.doi.org/10.17576/JEM-2025-5902-13
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Bibliography

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Ren, C. C., Loganathan, N., Subramaniam, Y., & Mursitama, T. N. (2025). Impact of digital economy, productivity, natural resources and innovation capacity on FDI flows in emerging market countries. Jurnal Ekonomi Malaysia, 59(2), –. http://dx.doi.org/10.17576/JEM-2025-5902-13

@article{ren2025impact,
  title={Impact of digital economy, productivity, natural resources and innovation capacity on FDI flows in emerging market countries},
  author={Ren, Chua Chy and Loganathan, Nanthakumar and Subramaniam, Yogeeswari and Mursitama, Tirta Nugraha},
  journal={Jurnal Ekonomi Malaysia},
  volume={59},
  number={2},
  pages={—},
 

year={2025},
}

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