Determinants of Gross National Income (GNI) in Selected ASEAN Countries

Abstract

The ASEAN region is a center for future economic growth that holds great economic potential with a wealth of natural resources and a large population.This study aims to analyze the GNI per capita in selected ASEAN countries from 2010 to 2019. The subjects in this study were the selected ASEAN countries that belonged to the middle-income category, comprising Indonesia, Cambodia, Laos, Malaysia, Myanmar, the Philippines, Thailand, and Vietnam. The analysis employed in this study was an econometric approach, namely the panel data method, processed utilizing the EViews 7 application. While the economic freedom variable partially had a negative and significant effect on GNI per capita. Simultaneously, the foreign direct investment, index of education, and economic freedom variables significantly influenced GNI per capita. The results of this study uncovered that the coefficient of determination was 0.98. Hence, the independent variables used in this study could explain the GNI per capita variable by 98%, whereas 0.2% was explained by other variables outside the model. The novelty of this research is to explain the economic potential of ASEAN and the factors influencing it.