Cover Image

Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]

This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012. The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework. The empirical evidence reveals that GDP, exchange rate...

Full description

Saved in:
Bibliographic Details
Main Authors: Chen, Jen-Eem, Chin, Lee, Law, Siong-Hook, Saini, W. N. W. Azman
Format: Article
Language:English
Published: Universiti Teknologi Mara Selangor 2016
Subjects:
JZ International relations
Globalization
Online Access:http://ir.uitm.edu.my/id/eprint/32799/1/32799.pdf
http://ir.uitm.edu.my/id/eprint/32799/
http://www.jeeir.com/v2/index.php/30-current/2016/vol-4-no-3-2016/133-paper5-vol4-no3-2016
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.uitm.ir.32799
record_format eprints
spelling my.uitm.ir.327992020-07-27T09:03:49Z http://ir.uitm.edu.my/id/eprint/32799/ Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.] Chen, Jen-Eem Chin, Lee Law, Siong-Hook Saini, W. N. W. Azman JZ International relations Globalization This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012. The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework. The empirical evidence reveals that GDP, exchange rate, openness to trade, and corporate tax rate are the key drivers of outward FDI from Malaysia. This portrays that internationalization strategy of firms is not only relied on home macroeconomic environment, but also home institution. More importantly, corporate tax rate, as one of the institution factors, is positively related to outward FDI which signifies that high tax rate would prompt local firms to engage in investment abroad as a sign of escape response. This reflects that international expansion appears to be exit strategy from home country instead of entry strategy into foreign markets. The findings have some important implications on internationalization strategy of firms. Universiti Teknologi Mara Selangor 2016-09 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/32799/1/32799.pdf Chen, Jen-Eem and Chin, Lee and Law, Siong-Hook and Saini, W. N. W. Azman (2016) Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]. Journal of Emerging Economies and Islamic Research, 4 (3). pp. 1-12. ISSN 2289 – 2559 http://www.jeeir.com/v2/index.php/30-current/2016/vol-4-no-3-2016/133-paper5-vol4-no3-2016
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic JZ International relations
Globalization
spellingShingle JZ International relations
Globalization
Chen, Jen-Eem
Chin, Lee
Law, Siong-Hook
Saini, W. N. W. Azman
Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]
description This paper aims to investigate the role of home country institution in affecting outward FDI from Malaysia using data spans from 1980 to 2012. The model specification is examined in autoregressive distributed lag (ARDL) bounds testing framework. The empirical evidence reveals that GDP, exchange rate, openness to trade, and corporate tax rate are the key drivers of outward FDI from Malaysia. This portrays that internationalization strategy of firms is not only relied on home macroeconomic environment, but also home institution. More importantly, corporate tax rate, as one of the institution factors, is positively related to outward FDI which signifies that high tax rate would prompt local firms to engage in investment abroad as a sign of escape response. This reflects that international expansion appears to be exit strategy from home country instead of entry strategy into foreign markets. The findings have some important implications on internationalization strategy of firms.
format Article
author Chen, Jen-Eem
Chin, Lee
Law, Siong-Hook
Saini, W. N. W. Azman
author_facet Chen, Jen-Eem
Chin, Lee
Law, Siong-Hook
Saini, W. N. W. Azman
author_sort Chen, Jen-Eem
title Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]
title_short Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]
title_full Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]
title_fullStr Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]
title_full_unstemmed Outward FDI and institutional factors: Malaysian experience / Jen-Eem Chen ... [et al.]
title_sort outward fdi and institutional factors: malaysian experience / jen-eem chen ... [et al.]
publisher Universiti Teknologi Mara Selangor
publishDate 2016
url http://ir.uitm.edu.my/id/eprint/32799/1/32799.pdf
http://ir.uitm.edu.my/id/eprint/32799/
http://www.jeeir.com/v2/index.php/30-current/2016/vol-4-no-3-2016/133-paper5-vol4-no3-2016
_version_ 1685650974362828800
score 13.211869

Similar Items