Examining the Effects of FDI, R&D, and Human Capital on the High-Tech Exports in ASEAN 5 – A Panel Data Analysis

Abstract

This study investigates the effects of FDI, R&D, and human capital on high-tech exports and their subsequent impact on economic growth in the ASEAN 5 countries from 2000 to 2022. The study employs a two-stage regression analysis using secondary data from reliable sources such as the World Bank, Euromonitor, and UNESCO-UIS. The first stage examines the relationship between FDI, R&D, and human capital on high-tech exports and utilizes the Fixed Effects Model (FEM) with Cross-section weights and White Cross-section. At the same time, the second stage investigates the relationship between high-tech exports and economic growth and also uses FEM with Cross-section Weights and applies the White Diagonal Cross-section covariance method. The study's findings present that, in the first stage, there is a significant and positive relationship between human capital and high-tech exports; however, there is also a significant but negative relationship between FDI and R&D and high-tech exports. Moreover, the results from the second stage revealed an insignificant relationship between high-tech exports and economic growth.