The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini

Foreign Direct Investment (FDI) has propelled the country into a higher stage of industrialisation during the past decades. The path towards fully developed nation by the year 2020 will entail significant transformation in the economic structure of the country. The achievement of the objectives of...

Full description

Saved in:

Bibliographic Details
Main Author:	Shahaini, Siti Fazila
Format:	Thesis
Language:	English
Published:	1998
Subjects:	Interest rates Interest tables
Online Access:	https://ir.uitm.edu.my/id/eprint/66029/1/66029.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.66029
record_format	uketd_dc
spelling	my-uitm-ir.660292022-10-23T13:52:14Z The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini 1998-10 Shahaini, Siti Fazila Interest rates. Interest tables Foreign exchange. Foreign exchange rates Investment companies. Investment trusts. Mutual funds Foreign investments. Country risk Foreign Direct Investment (FDI) has propelled the country into a higher stage of industrialisation during the past decades. The path towards fully developed nation by the year 2020 will entail significant transformation in the economic structure of the country. The achievement of the objectives of vision 2020 will depend a lot on how Malaysia can stay competitive global environment and how it could adapt to the changing patterns of international trade and investment flows. This will in turn shows the role of foreign investment in the economic development of the country. In the light of the considerable Foreign Direct Investment (FDI) that has ploughed into the Malaysian economy, this paper attempts empirically examine the impact of exchange rate and interest rate movement on FDI. Using an annual time series data considering from 1988 to 1997, the regression analysis is used in estimating the variables. The Ordinary Least Squares (OLS) method is used to derive the estimated coefficient. The model used are the single variable and multi-variable model. In this study FDI is being divided into two sectors that are manufacturing and property sector. Focussing on the primary objective of the study, i it was found that exchange rate of RM per unit of US$ , RM per unit of £. and interest rate does not have a strong impact in influencing the inflow of Foreign Direct Investment. The result suggests that, other factors such as attractive and liberal policy towards foreign investment, conducive economics and political condition and infrastructure facilities available in the country are major factors that will influence investor's decision to invest in this country. Couple with fairly liberal policy towards FDI, the country's FDI will continue to grows over the years. It is obvious that FDI is actively and directly involved in manufacturing and property sector. Therefore, FDI's increasing role can be seen as the beneficial factor towards Malaysia's economic development. 1998-10 Thesis https://ir.uitm.edu.my/id/eprint/66029/ https://ir.uitm.edu.my/id/eprint/66029/1/66029.pdf text en public degree Universiti Teknologi MARA, Kelantan Faculty of Business and Management Kaur, Gumit
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Kaur, Gumit
topic	Interest rates Interest tables Interest rates Interest tables Interest rates Interest tables Interest rates Interest tables
spellingShingle	Interest rates Interest tables Interest rates Interest tables Interest rates Interest tables Interest rates Interest tables Shahaini, Siti Fazila The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini
description	Foreign Direct Investment (FDI) has propelled the country into a higher stage of industrialisation during the past decades. The path towards fully developed nation by the year 2020 will entail significant transformation in the economic structure of the country. The achievement of the objectives of vision 2020 will depend a lot on how Malaysia can stay competitive global environment and how it could adapt to the changing patterns of international trade and investment flows. This will in turn shows the role of foreign investment in the economic development of the country. In the light of the considerable Foreign Direct Investment (FDI) that has ploughed into the Malaysian economy, this paper attempts empirically examine the impact of exchange rate and interest rate movement on FDI. Using an annual time series data considering from 1988 to 1997, the regression analysis is used in estimating the variables. The Ordinary Least Squares (OLS) method is used to derive the estimated coefficient. The model used are the single variable and multi-variable model. In this study FDI is being divided into two sectors that are manufacturing and property sector. Focussing on the primary objective of the study, i it was found that exchange rate of RM per unit of US$ , RM per unit of £. and interest rate does not have a strong impact in influencing the inflow of Foreign Direct Investment. The result suggests that, other factors such as attractive and liberal policy towards foreign investment, conducive economics and political condition and infrastructure facilities available in the country are major factors that will influence investor's decision to invest in this country. Couple with fairly liberal policy towards FDI, the country's FDI will continue to grows over the years. It is obvious that FDI is actively and directly involved in manufacturing and property sector. Therefore, FDI's increasing role can be seen as the beneficial factor towards Malaysia's economic development.
format	Thesis
qualification_level	Bachelor degree
author	Shahaini, Siti Fazila
author_facet	Shahaini, Siti Fazila
author_sort	Shahaini, Siti Fazila
title	The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini
title_short	The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini
title_full	The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini
title_fullStr	The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini
title_full_unstemmed	The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini
title_sort	impact of exchange rate and interest rate on foreign direct investment / siti fazila shahaini
granting_institution	Universiti Teknologi MARA, Kelantan
granting_department	Faculty of Business and Management
publishDate	1998
url	https://ir.uitm.edu.my/id/eprint/66029/1/66029.pdf
_version_	1783735596767772672

The impact of exchange rate and interest rate on Foreign Direct Investment / Siti Fazila Shahaini

Similar Items