FDI IN DIFFERENT SECTORS OF SOUTH ASIAN ECONOMIES

The purpose of this research is to offer a regression model that can be used to explain the distribution of foreign direct investment (FDI) in various industries in South Asian nations. The study's goal is to look at the link between foreign direct investment inflows and the factors that influence them. The research is based on secondary sources. The findings reveal that total GDP is the most important factor influencing FDI influx into South Asian nations. Given the region's large population and expanding developing markets, FDI is pouring in to harness the region's massive and increasing domestic markets. We found that GDP % growth of South Asia in 2019 was $3,596.91B, increase 4.66% from 2018, GDP per capita South Asia in 2019 was $1,959, increase 3.44% from 2018, FDI inflows South Asia in 2019 was $56.69B, increase 16.52% from 2018, Trade openness South Asia in 2018 was 42.31%, increase 2.89% from 2017 and Literacy rate South Asia in 2019 was 72.95%, increase 0.71% from 2018. The multiple regression finding show that FDI and all of its possible factors have a long run equilibrium connection beside only one variable. Trade openness, Per capita income Literacy are the primary factors of FDI in South Asia. In order to attract more FDI, South Asian nations must continue their development momentum, establish policies to make better use of their large labour forces, enhance infrastructure, and implement more open trade policies