Determinants of foreign direct investment in Malaysia / Liyana Mohd Amin
The paper investigates the determinants of foreign direct investment (FDI) in Malaysia, the strong growth performances experienced by Malaysia economy greatly on the FDI. FDI inflows enhance economic growth by increasing capital formation through the expansion of production capacity, promotion...
Saved in:
| Main Author: | |
|---|---|
| Format: | Student Project |
| Language: | English |
| Published: |
2019
|
| Subjects: | |
| Online Access: | http://ir.uitm.edu.my/id/eprint/41947/1/41947.pdf http://ir.uitm.edu.my/id/eprint/41947/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | The paper investigates the determinants of foreign direct investment (FDI) in Malaysia,
the strong growth performances experienced by Malaysia economy greatly on the FDI.
FDI inflows enhance economic growth by increasing capital formation through the
expansion of production capacity, promotion of export growth and creation of
employment in Malaysia. FDI inflows of Malaysia started fluctuating from 1996 to
2010 and this high volatility of Malaysia FDI inflows drew the researchers to examine
the relationship FDI inflows in Malaysia by using the annual data from year 1982–
2018. Multiple linear regressions model is applied to study the relationship between
explanatory variables (gross domestic product (GDP), consumer price index (CPI),
unemployment and populations) and explained variable (Malaysia FDI inflow).
Empirical results show that gross domestic product (GDP), consumer price index (CPI)
and unemployment are significant in determining foreign direct investment in
Malaysia. Conversely, population is insignificant in determining FDI in Malaysia. |
|---|