Paper Title
Macroeconomic Determinants of Inward Foreign Direct Investment in Brunei Darussalam

Abstract
Many oil-dependent economies are trying to diversify away from hydrocarbons. Brunei is no exception. In its ‘Brunei Vision 2035’ reform agenda, FDI is expected to play a crucial role in the economic diversification objectives. There is no country study on inward FDI determinants for the country. This study fills an important gap by employing cointegration techniques to analyse the relationship between inward FDI and selected macroeconomic and financial variables for Brunei using data sourced from the World Bank. The ARDL regression results indicate that in the long run, increases in the GDP growth rate, unemployment, domestic credit, secondary school enrolment, oil price and government size encourage inward FDI, but appreciation of the local currency against the US dollar deters FDI. In the short run, the speed of adjustment is rapid but there is a tendency to over-correct in the adjustment to a short-run disequilibrium.Estimated beta coefficients are used to rank the variables in importance. Keywords - Inward FDI determinants, ARDL, Brunei Darussalam. JEL Classification: E22, F21, F40.