ABSTRACT

The target of this study is to analyze where in South Asia efficiency-seeking FDI is going, or the FDI arriving at these countries is looking for benefit from the highly productive labor of South Asian countries. This type of FDI will be a long-run FDI that brings benefits to the host country in terms of (technological transfer, skill development, and growth,) The exploration shows that labor market factors or centered factors of our review, like output labor cost ratio, which is extracted from the balance of output and ratio of labor, employment in manufacturing, and output of manufacturing moderating, affect the inflows of FDI into a nation. Besides, we utilize controlled factors like GDP Growth rate, Trade Openness, and exchange rate of a country to evaluate the impact of monetary factors on characterizing inflows into a country. A Panel Data Analysis is utilized to examine the effects of Focused and controlled factors on a reliant variable (FDI). Measurements used information from 2000 – 2020. Because of these discoveries, a nation’s output-labor cost ratio is critical for characterizing foreign investment in a country. There is ample proof that OLC, GDP Growth, Exchange rate, and Trade openness affects inflows of FDI in South Asian countries. There are two ways our examination adds to the literature: First we demonstrate high productivity with low-cost labor (efficient labor) is critical for looking for FDI in a nation; second, we utilize the labor market variables as a mediator component.