Introduction
Foreign Direct Investment (FDI) outflow has become an essential component of
economic growth particularly for developing countries. This is due to the fact that the
main source of FDI outflow is from the developed countries. Nevertheless, the
emergence of globalization leads to the removal of barriers among countries which
allow some developing countries to gain a share as a source of global outward FDI.
Global FDI outflows and outward stocks recorded significant growth as shown in
Table 1. FDI outflows achieved US$1.32 billion in 2006 and expand with tremendous
growth rate of 50.9% to reached US$1.99 billion in 2007. In related to that, developed
countries play significant role as source of FDI outflow with the amount of US$1.69
billion or accounted approximately for 85% of total FDI outflow in 2007.
Notwithstanding, developing countries particularly in Asia region have emerged as
sources of FDI due to the globalization and trade liberalization. The contribution of