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:	2010
Subjects:	HG Finance
Online Access:	http://ir.unimas.my/id/eprint/9038/1/Ho%20Chia.pdf
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id	my-unimas-ir.9038
record_format	uketd_dc
spelling	my-unimas-ir.90382023-05-05T07:52:38Z Financial liberalization and Fdi in Malaysia 2010 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 http://ir.unimas.my/id/eprint/9038/ http://ir.unimas.my/id/eprint/9038/1/Ho%20Chia.pdf text en validuser masters Universiti Malaysia Sarawak, (UNIMAS) Faculty of Economics and Business
institution	Universiti Malaysia Sarawak
collection	UNIMAS Institutional Repository
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
qualification_level	Master's degree
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
granting_institution	Universiti Malaysia Sarawak, (UNIMAS)
granting_department	Faculty of Economics and Business
publishDate	2010
url	http://ir.unimas.my/id/eprint/9038/1/Ho%20Chia.pdf
_version_	1783728003189047296

Financial liberalization and Fdi in Malaysia

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