Economic and institutional factors influence foreign direct investment (FDI) inflows. To address limitations in previous regional research, this study uses a balanced panel dataset spanning 19 years across all ten ASEAN member states. Employing a panel EGLS (cross-sectional SUR) methodology, we evaluate all six Worldwide Governance Indicators (WGI), both aggregated and disaggregated, alongside five macroeconomic controls: economic growth, exchange rate, financial development, unemployment, and human development. Results indicate that while aggregate governance significantly influences FDI, individual WGI dimensions are heterogeneous. Specifically, voice and accountability, rule of law, and control of corruption consistently exert positive effects, whereas other dimensions are inconsistent or unexpectedly negative. All control variables remain significant, aligning with theoretical frameworks. This study contributes through its full regional coverage and detailed analysis of governance dimensions, providing a clearer understanding of investment behaviors. The findings offer important policy implications: achieving sustainable economic growth via FDI requires targeted improvements in specific governance dimensions rather than broad institutional changes.

Contemporary economic growth trajectories are characterized by accelerating digital integration. However, the digital infrastructure required to accelerate growth remains unevenly distributed across development tiers. This study examines a “Digital Maturity Paradox” using a cross-sectional dataset of 121 countries, stratified into developing $\left(N=76\right)$ and developed $\left(N=45\right)$ cohorts. Statistically validated via the Chow Breakpoint Method $\left(F=11.91; p<0.01\right)$, the study demonstrates that growth drivers vary significantly based on developmental maturity. The findings indicate that digitalization and foreign direct investment (FDI) serve as primary catalysts for developing countries, supporting the “Leapfrogging Hypothesis” with statistically significant coefficients $(\beta =1.106, p<0.01$ and $\beta =0.246, p<0.05,$ respectively). Conversely, a “productivity paradox” emerges within the developed cohort, where the marginal returns of digitalization saturate and turn negative ($\beta =-0.734, p<0.10)$, and FDI becomes statistically insignificant. Sensitivity analysis isolating developed economies by excluding extreme maritime financial hubs $\left(N=43\right)$ confirms that the explanatory power of traditional vectors remains structurally compressed in the Global North (R-squared < 2%), mathematically solidifying the “Fitness Gap” against baseline model (N = 45, Adjusted R-squared = 1.61%). These findings suggest that while the traditional, infrastructure-led growth rules still govern the Global South, the Global North needs to transition toward Artificial Intelligence-driven total factor productivity to sustain economic growth.

1. In recent years, the informal economy—operationally defined as legal, market-based production operating outside formal registration, taxation, and statutory regulatory frameworks (Chen, 2012, 20...

Mathematical Economics is closely related with Social Choice Theory. In this paper, an attempt has been made to show this relation by introducing utility functions, preference relations and Arrow’s impossibility theorem with easier mathematical calculations. The paper begins with some definitions which are easy but will be helpful to those who are new in this field. The preference relations will give idea in individual’s and social choices according to their budget. Economists want to create maximum utility in society and the paper indicates how the maximum utility can be obtained. Arrow’s theorem indicates that the aggregate of individuals’ preferences will not satisfy transitivity, indifference to irrelevant alternatives and non-dictatorship simultaneously so that one of the individuals becomes a dictator. The Combinatorial and Geometrical approach facilitate understanding of Arrow’s theorem in an elegant manner.