From Trade and Foreign Direct Investment to Technology: International R&D Spillovers and Productivity in ASEAN

This study attempts to explain the relationship between international R&D spillover from trade channels and foreign direct investment on Total Factor Productivity (TFP) based on the endogenous growth theory in the Association of Southeast Asian Nations (ASEAN) during the period 1996–2020. The study found that international R&D spillover from trade channels and foreign direct investment outward are significant factors in increasing TFP. Moreover, the study also discovered that international trade (exports and imports) has a significant impact on productivity in ASEAN. Additionally, the Human Development Index (HDI) plays a significant role in influencing productivity in ASEAN.