Abstract
One strategy of ASEAN countries to fill the scarcity of capital resources of development to increase their economic growth is to implement economic liberalization through Foreign Direct Investment (FDI). Therefore, this research aimed to analyze the effect of FDI on economic growth of ASEAN countries. Panel data analysis from 10 ASEAN countries during the period 1980-2012 using Fixed Effect Model WLS cross-section SUR stated that FDI, Gross Fixed Capital Formation (GFCF), labor force, net exports and economic crisis significantly affect the economic growth of ASEAN countries altogether. Then, partially, FDI, GFCF, and labor force have a positive effect on economic growth of ASEAN countries, while net exports and economic crisis negatively affect economic growth in the ASEAN countries.
