Financial liberalization and Fdi in Malaysia

([his study aims to examine whether economic growth, interest rate and financial development, lead to FDI growth or vice versa in the small open economy of Malaysia. Covering the period from 1999:Ql to 2007:Q4, we re-examine the robustness of the relationship between FDI and economic growth, intere...

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Main Author: Ho, Chia Lee
Format: Thesis
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2010
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Online Access:http://ir.unimas.my/id/eprint/9038/1/Ho%20Chia.pdf
http://ir.unimas.my/id/eprint/9038/
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spelling my.unimas.ir.90382023-05-05T07:52:38Z http://ir.unimas.my/id/eprint/9038/ Financial liberalization and Fdi in Malaysia Ho, Chia Lee HG Finance ([his study aims to examine whether economic growth, interest rate and financial development, lead to FDI growth or vice versa in the small open economy of Malaysia. Covering the period from 1999:Ql to 2007:Q4, we re-examine the robustness of the relationship between FDI and economic growth, interest rate and financial development by using three types of methods: (1) the Augmented Dickey-Fuller (ADF) unit root test, (2) the Johansen and Juselius co-integration test, and (3) the Granger causality tes;) Results of these three methods indicated that economic growth, interest rate and financial development in Malaysia do affect the flow of FDI towards Malaysia. The findings also provide some support for the necessity of a well-functioning financial system in order to achieve high economic growth. Our findings also indicate that the interest rate played a role in enhancing financial development. This study further showed that a Granger-caused link exists between economic growth, interest rate, financial development and FDI - these are significantly interrelated. Given the strong evidence from the empirical results, we advocate that increased liberalization in the financial sector could help to attract more foreign investment towards Malaysia, the result of which is stronger economic growth. Universiti Malaysia Sarawak, (UNIMAS) 2010 Thesis NonPeerReviewed text en http://ir.unimas.my/id/eprint/9038/1/Ho%20Chia.pdf Ho, Chia Lee (2010) Financial liberalization and Fdi in Malaysia. Masters thesis, Universiti Malaysia Sarawak, (UNIMAS).
institution Universiti Malaysia Sarawak
building Centre for Academic Information Services (CAIS)
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sarawak
content_source UNIMAS Institutional Repository
url_provider http://ir.unimas.my/
language English
topic HG Finance
spellingShingle HG Finance
Ho, Chia Lee
Financial liberalization and Fdi in Malaysia
description ([his study aims to examine whether economic growth, interest rate and financial development, lead to FDI growth or vice versa in the small open economy of Malaysia. Covering the period from 1999:Ql to 2007:Q4, we re-examine the robustness of the relationship between FDI and economic growth, interest rate and financial development by using three types of methods: (1) the Augmented Dickey-Fuller (ADF) unit root test, (2) the Johansen and Juselius co-integration test, and (3) the Granger causality tes;) Results of these three methods indicated that economic growth, interest rate and financial development in Malaysia do affect the flow of FDI towards Malaysia. The findings also provide some support for the necessity of a well-functioning financial system in order to achieve high economic growth. Our findings also indicate that the interest rate played a role in enhancing financial development. This study further showed that a Granger-caused link exists between economic growth, interest rate, financial development and FDI - these are significantly interrelated. Given the strong evidence from the empirical results, we advocate that increased liberalization in the financial sector could help to attract more foreign investment towards Malaysia, the result of which is stronger economic growth.
format Thesis
author Ho, Chia Lee
author_facet Ho, Chia Lee
author_sort Ho, Chia Lee
title Financial liberalization and Fdi in Malaysia
title_short Financial liberalization and Fdi in Malaysia
title_full Financial liberalization and Fdi in Malaysia
title_fullStr Financial liberalization and Fdi in Malaysia
title_full_unstemmed Financial liberalization and Fdi in Malaysia
title_sort financial liberalization and fdi in malaysia
publisher Universiti Malaysia Sarawak, (UNIMAS)
publishDate 2010
url http://ir.unimas.my/id/eprint/9038/1/Ho%20Chia.pdf
http://ir.unimas.my/id/eprint/9038/
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score 13.211869