Assignment 1- Individual Case Study Analysis.

ECON1192- Business Statistics 1

Student name: Vuong Gia Thinh- S3934823
Location: RMIT Saigon South
Lecturer: Greeni Maheshwari
Word count: 1445 words.

I. INTRODUCTION

FDI (Foreign Direct Investment) has been increasing significantly in global FDI flows.
According to the United Nations Conference on Trade and Development (UNCTAD), in
2019, FDI flows grew up by 11%, reaching a total of $1.39 trillion due to the strong
investments in developed economies, particularly in the United States and Europe. Moreover,
a report by the Organization for Economic Co-operation and Development (OECD) mentions
that FDI flows have climbed steadily since the 1980s, with a rapid increase in the 1990s and
early 2000s. The increase in FDI flows depends on many factors including globalization,
liberalization of trade and investment policies, and advancements in technology. Though the
upward trend over the past few decades, the global FDI flows are predicted to continue in the
future. This report will analyze to decide which country should be more potential for FDINI
to focus on between Cambodia and Haiti.

II. ANALYSIS

1
 a) Line graph:

Foreign direct investment, net inflows (% of GDP)

of Cambodia and Haiti, 1996- 2020
16
14
12
10
8
6
4
2
0
9 6 98 0 0 02 0 4 0 6 0 8 10 12 1 4 1 6 1 8 20
19 19 20 20 20 20 20 20 20 20 20 20 20

Cambodia Haiti

Chart 1: The line graph of foreign direct investment, and net inflows (% of GDP) of
Cambodia and Haiti during the period from 1996 to 2020.
It is clear that the FDI, inflows in Cambodia are higher than that in Haiti. Also, from 1996 to
2016, the Cambodia FDI fluctuated rapidly, while the Haiti FDI had light changes.
However, in the period from 2016 to 2020, the figures for Haiti's FDI decreased from about
2.49% to nearly 0%, by contrast, Cambodia's FDI increased from about 10% to 14% of GDP.
During 24 years, the highest percentage of Cambodia's FDI reached was nearly 14.1% which
was 5.64 times compared to the highest percentage of Haiti's FDI, 2,5%. Moreover, Haiti's
lowest FDI percentage is almost 0%, while Cambodia's is 1.75%.

b) Measures of Central Tendency:

Measures Of Central
Haiti Comparison Cambodia
Tendency
8.542
Mean 0.665 < 

8.925
Median 0.507 < 

Mode #N/A   #N/A

2
 Figure 2: Table of comparison of Central Tendency between Cambodia and Haiti.

Based on Figure 2, the best measure for analyzing the FDINI of both countries would be the
median. The reason is choosing the median is less affected by extreme values or outliers in
the dataset, which can skew the results of the mean. Moreover, the median FDINI in
Cambodia is 8.925, which is much higher than that of Haiti, this proves that a larger
percentage of the population in Cambodia has a higher FDINI compared to Haiti.

c) Measures of Variations:

Measures of Variations Cambodia Comparison Haiti

Range 12.394 > 2.424

Interquartile Range
8.778 > 0.588
(IQR)
Sample Variance 18.298 > 0.388
Standard deviation 4.278 > 0.623
Coefficient of Variation
50.076% < 93.697%
% (CV)

Figure 3: Table of measures of Variation of the FDINI of Cambodia and Haiti.

Due to the existence of outliers in Haiti figures, using Interquartile Range is a reasonable
measure in this case which is the spread from Q1 to Q3, and ignores the outliers. The IQR

Cambodia Interval Frequency

1.751-2.751 2
2.751-3.751 5
5.751-6.751 3
7.751-8.751 2
8.751-9.751 1
9.751-10.751 2
10.751-11.751 1
11.751-12.751 4
12.751-13.751 3
13.751-14.751 2 3
Total 25
of Cambodia (8.778) is much longer than that of Haiti (0.588), which means that the
percentage of % GPD invested by FDINI in

Cambodia will be hard to predict in the future.

d) Histogram:

Haiti Interval Frequency

0.069-0.169 5
0.169-0.269 2
0.269-0.369 4
0.469-0.569 2
0.569-0.669 2
0.669-0.769 3
0.769-0.869 1
0.869-0.969 1
1.069-1.169 2
1.469-1.569 1
2.069-2.169 1
>2.569 1
Total 25

4
 Histogram of FDI (% of GDP) changes of
Cambodia
6

4
Frequency

0
1.751- 2.751- 5.751- 7.751- 8.751- 9.751- 10.751- 11.751- 12.751- 13.751-
2.751 3.751 6.751 8.751 9.751 10.751 11.751 12.751 13.751 14.751

Cambodia Bin

Figure 4: The histogram of FDI (% of GDP) changes in Cambodia.

Histogram of FDI changes of Haiti

6

4
Frequency

0
0.069- 0.169- 0.269- 0.469- 0.569- 0.669- 0.769- 0.869- 1.069- 1.469- 2.069- >2.569
0.169 0.269 0.369 0.569 0.669 0.769 0.869 0.969 1.169 1.569 2.169

Haiti Bin

Figure 5: The histogram of FDI (% of GDP) changes of Haiti.

Based on Figure 4 and Figure 5, Cambodia has a wider range of FDINI values compared to
Haiti. Cambodia's values range from 1.751 to 14.751, while Haiti’s FDINI values range

5
from 0.069 to smaller than 2.569.
For Cambodia Histogram, the frequency is 5 in the FDINI from 2.751 to 3.751. For Haiti,
the histogram will show a high peak in the range of 0.069 to 0.769 with the high highest
frequency being 5 (0.069-0.169).

e) Box-and-Whisker Plot

Figure 6: Box-and-Whisker Plot of Cambodia and Haiti FDINI.

Looking at the box-and-whisker plots, the median FDINI for Cambodia is higher than that
of Haiti. The interquartile range (IQR) for Cambodia is also larger than that of Haiti,
indicating that the data for Cambodia is more spread out.
III. CONCLUSION:

According to the Box-and-Whisker plot, mean, median, and histogram, both countries have
positive percentages of FDINI during the period. However, the Mean, Median, and the
Interquartile Range of Cambodia are much higher than in Haiti. Although the proportion of
Cambodia is fluctuating due to some factors such as politic, and the environment, all of
these results in the Median, Mean, and Interquartile Range are much higher than Haiti. It
proves that the FDINI invested in Cambodia is more efficient than in Haiti. Therefore,
Cambodia is a destination that FDINI should be attracted to.
IV. DISCUSSION

To decide which country has more potential to have the attention by FDINI, using a line
graph can help to compare the data set between Cambodia and Haiti easily, in this case, the
FDINI of Cambodia is much higher than Haiti, which means that investing in FDINI in
Cambodia is more reasonable.
Factors influencing FDINI changes in Cambodia:
1. Economic/Finance Factors:
Investments from other countries ((World Bank Group 2021): Cambodia's FDINI is highly

6
impacted by investments from other countries, particularly in the textile and apparel
industries. The Foreign Direct Investment National Income (FDINI) of Cambodia is
susceptible to the effects of any shifts in the economic environment or regulations
governing foreign investment that occur in major investor nations.
Rates of exchange: Fluctuation in the country's currency exchange rates can also have an
effect on Cambodia's FDINI because of their influence on the cost of conducting business
and the attractiveness of investing in the nation.
2. Social Factors:
Cambodia's political stability is one of the most important factors in the country's capacity
to entice foreign direct investment. FDINI may experience difficulties as a result of any
political disturbance or instability. (Okara, A. 2022).
Labor force: The availability and quality of the labor force in Cambodia can have an effect
on FDINI. This is because investors are looking for a competent and dependable workforce
to invest in. (International Labor Organization. 2020).
Factors influencing FDINI changes in Haiti:
1. Economic/Finance Factors:
Infrastructure: The status of Haiti's infrastructure has a significant impact on the country's
FDINI, notably in terms of the country's transportation and electricity systems. Changes,
whether positive or negative, in the progress of infrastructure development may have an
effect on FDINI. (The World Bank 2019). (Katz, E. and Owen, J. 2018).
Access to finance Having access to credit is one of the most important factors in luring
investors to Haiti. Any shifts in the amount of credit available or interest rates can have an
effect on FDINI. (UNCTAD 2019).
2. Social Factors:
Education: Because investors are looking for a professional and educated workforce, the
degree of education that the Haitian worker possesses might have an effect on FDINI.
(Katz, E. and Owen, J. 2018).
Political stability: Similar to Cambodia, Haiti's capacity to maintain political stability is an
essential component in the process of luring foreign direct investment. FDINI may
experience difficulties as a result of any political disturbance or instability. (Gwartney, J.,
Lawson, R. and Hall, J. 2018).

7
 Foreign direct investment, net inflows (% of
GDP) of Cambodia and Haiti, and the World
1996- 2020.

20

15

10

0
96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20
-5

Cambodia Haiti World

Figure 7: Foreign direct investment, net inflows (% of GDP) of Cambodia and Haiti, and
the World 1996- 2020.

Looking at figure 7, Haiti is the country that has a similar trend to the world FDINI, from
1996 to 1998, both of these had an increase in FDINI. Moreover, in the period from 2018
to 2020, the world and Haiti experienced a fall down in the FDINI while Cambodia's FDI
grew up.

V. REFERENCE LIST:

World Bank Group (2021) 'Doing Business 2021: Cambodia', [online] Available at:
https://www.doingbusiness.org/content/dam/doingBusiness/country/c/cambodia/KHM.pdf
[Accessed 10 May 2021].

8
Okara, A. 2022, 'Does Foreign Direct Investment Promote Political Stability? Evidence from
Developing Economies', HAL Archives Ouvertes, hal-03617085.
International Labour Organization. 2020. Cambodia: Labor Market Profile 2020. [online]
Available at: <https://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/
publication/wcms_755882.pdf> [Accessed 10 May 2021].

The World Bank 2019, Haiti: Systematic Country Diagnostic, viewed 10 May 2021,
<https://openknowledge.worldbank.org/handle/10986/31698>.

United Nations Conference on Trade and Development (UNCTAD) 2019, World Investment
Report 2019: Special Economic Zones, viewed 10 May 2021,
<https://unctad.org/system/files/official-document/wir2019_en.pdf>.

Katz, E. and Owen, J. (2018) 'The Impact of Education on Economic Development', Harvard
Business Review, 96(5), pp. 114-121.

Gwartney, J., Lawson, R. and Hall, J. (2018) Economic Freedom of the World: 2018 Annual
Report, Fraser Institute, Vancouver.

9
10