Factors Driving Foreign Direct Investment: An Empirical Investigation Using Multiple Regression

The Philippines actively promotes foreign direct investment to increase economic growth, but has fallen behind its neighbors in the global ranking. This includes the prohibition of owning equity and a limit on the amount of equity that can be owned. The country has been unable to break through the middle-income trap, leading to a disparity in foreign investment due to its inability to adjust its law in global situations. The study sought to determine the trend of foreign direct Investment and the economic factors of the Philippines, and to examine the relationship between FDI and economic factors. Moreover, this study employed a quantitative method to examine the link between factors that may be quantified to evaluate objective hypotheses. Multiple regression analysis was used to measure the relationship between the dependent and independent variables. The study made use of the available secondary data from World Bank, which was from 1971 to 2020. The results showed no significant relationship between the two, suggesting that foreign investment intervention is necessary to ensure an economic upswing.