This study attempts to analyze the effectiveness of FDI (Foreign Directive Investment), ODA (Official Development Assistance), and employment rate as control variables on the urbanization of ASEAN developing countries between 1992 and 2013. The result...
This study attempts to analyze the effectiveness of FDI (Foreign Directive Investment), ODA (Official Development Assistance), and employment rate as control variables on the urbanization of ASEAN developing countries between 1992 and 2013. The results show that FDI has exerted the most robust positive impact on urbanization. Even though ODA has exercised significant impact on urbanization, but its magnitude seems not as strong as that of FDI. In contrast, employment rate has wielded negative effect on urbanization over the same period, implying that employment rate per se is not interconnected with urban in-migration in the ASEAN developing countries. Departing from existing trends which overly depend on economic interpretation of FDI, this study tries to suggest an alternative approach geared with FDI and ODA concepts in urban sector. In particular, this study stresses that developing countries should pay due attention to FDI and ODA as they may trigger sustainable urbanization based on the additional employment.