The determinants of FDI inflow in manufacturing sector of Malaysia

The role of foreign direct investment (FDI) to create competition,technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study inv...

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Main Authors: Fakhreddin, Farzad, Nezakati, Hossein, Vaighan, Behzad Mahmoudi
Format: Article
Language:English
Published: Inderscience Enterprises 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22787/1/The%20determinants%20of%20FDI%20inflow%20in%20manufacturing%20sector%20of%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/22787/
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spelling my.upm.eprints.227872015-09-21T06:32:02Z http://psasir.upm.edu.my/id/eprint/22787/ The determinants of FDI inflow in manufacturing sector of Malaysia Fakhreddin, Farzad Nezakati, Hossein Vaighan, Behzad Mahmoudi The role of foreign direct investment (FDI) to create competition,technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study investigated the determinants of FDI in manufacturing sector of Malaysia over the period from 2000 to 2009. Using quarterly data, this research found a positive and significant effect of domestic credit to private sector provided by banking system and development expenditure of government on FDI.Meanwhile, the effect of the global financial recession of 2007–2008 on FDI inflow to Malaysia was positive and significant, though due to this recession reduction of the world aggregate FDI reduced the growth of FDI inflow to the manufacturing sector of Malaysia. The effect of corruption on FDI’s growth was also negative and significant Inderscience Enterprises 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22787/1/The%20determinants%20of%20FDI%20inflow%20in%20manufacturing%20sector%20of%20Malaysia.pdf Fakhreddin, Farzad and Nezakati, Hossein and Vaighan, Behzad Mahmoudi (2011) The determinants of FDI inflow in manufacturing sector of Malaysia. Journal for International Business and Entrepreneurship Development, 5 (4). 299- 314. ISSN 1549-9324; ESSN: 1747-6763 http://www.inderscience.com/info/inarticle.php?artid=42386 10.1504/JIBED.2011.042386
institution Universiti Putra Malaysia
building UPM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Putra Malaysia
content_source UPM Institutional Repository
url_provider http://psasir.upm.edu.my/
language English
description The role of foreign direct investment (FDI) to create competition,technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study investigated the determinants of FDI in manufacturing sector of Malaysia over the period from 2000 to 2009. Using quarterly data, this research found a positive and significant effect of domestic credit to private sector provided by banking system and development expenditure of government on FDI.Meanwhile, the effect of the global financial recession of 2007–2008 on FDI inflow to Malaysia was positive and significant, though due to this recession reduction of the world aggregate FDI reduced the growth of FDI inflow to the manufacturing sector of Malaysia. The effect of corruption on FDI’s growth was also negative and significant
format Article
author Fakhreddin, Farzad
Nezakati, Hossein
Vaighan, Behzad Mahmoudi
spellingShingle Fakhreddin, Farzad
Nezakati, Hossein
Vaighan, Behzad Mahmoudi
The determinants of FDI inflow in manufacturing sector of Malaysia
author_facet Fakhreddin, Farzad
Nezakati, Hossein
Vaighan, Behzad Mahmoudi
author_sort Fakhreddin, Farzad
title The determinants of FDI inflow in manufacturing sector of Malaysia
title_short The determinants of FDI inflow in manufacturing sector of Malaysia
title_full The determinants of FDI inflow in manufacturing sector of Malaysia
title_fullStr The determinants of FDI inflow in manufacturing sector of Malaysia
title_full_unstemmed The determinants of FDI inflow in manufacturing sector of Malaysia
title_sort determinants of fdi inflow in manufacturing sector of malaysia
publisher Inderscience Enterprises
publishDate 2011
url http://psasir.upm.edu.my/id/eprint/22787/1/The%20determinants%20of%20FDI%20inflow%20in%20manufacturing%20sector%20of%20Malaysia.pdf
http://psasir.upm.edu.my/id/eprint/22787/
http://www.inderscience.com/info/inarticle.php?artid=42386
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score 13.211869