'The Attractiveness Index', an investigation of direct investment economic policies of four newly industrialized countries: Hong Kong, South Korea, Singapore, Taiwa

The problem. The purpose of this research was to evaluate the relationship between foreign direct investment policies and economic growth patterns and assess their similarities. The four countries in the Pacific Basin selected were South Korea, Singapore, Hong Kong and Taiwan. The period of analysis covered the years from 1967 to 1987.;The method. The research method was based, in part, on similar studies conducted by William A. Stoever, et al. in 1986 and Anne O. Krueger, et al. in 1981.;The collection of data was based on criteria established for the study and data sources were identified. Cross-sectional analysis was utilized in analyzing the tabulated data elements. Pearson r product-moment correlation coefficient was employed to test the relationships of the variables. A research-designed classification was designed to group specific data elements into similar categories where and when appropriate.;The results. The findings indicated that there was a statistically tested relationship between the independent variable, foreign direct investment, and the dependent variable, economic growth patterns. The evidence showed a relatively high mathematically correlation between that of increased growth in foreign direct investment and positive increases within the economic growth patterns as reflected by the studied elements of (1) export earnings; (2) real GDP; (3) degree of openness; and (4) degree of annual capital expenditure. The findings of the study also revealed an abundance of similar/homogeneous foreign direct investment policies exercised by the four Newly Industrialized Countries to attract foreign direct investments.;The homogeneity of foreign direct investment policies suggest the possibility of applying these policies as an ATTRACTIVENESS INDEX for other developing economies that seek increased fixed capital formation, rise in trade flows, and measurable improvements in the growth of their respective gross national product.