Macroeconomic Determinants of Foreign Direct Investment Inflow into Malaysia: Empirical Studies

The purpose of the research is to add insights into the field of FDI and to investigate more about the relations -if exist-between macro economic determinants i.e., interest rate,exchange rate,inflation rate, growth domestic product, export of goods and services, import of goods and services, and F...

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Bibliographic Details
Main Author: Aldaqes, Rajai Y.S
Format: Thesis
Language:eng
eng
Published: 2012
Subjects:
Online Access:https://etd.uum.edu.my/3219/1/RAJAI_Y.S_ALDAQES.pdf
https://etd.uum.edu.my/3219/2/RAJAI_Y.S_ALDAQES.pdf
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Summary:The purpose of the research is to add insights into the field of FDI and to investigate more about the relations -if exist-between macro economic determinants i.e., interest rate,exchange rate,inflation rate, growth domestic product, export of goods and services, import of goods and services, and FDI inflow into Malaysia as a major host country. Based on the reviewed and analyzed results, findings reveal general trends of such relations. Time series data from 1990-2010 has been studied using a linear regression analysis based on the OLS model and OLI Paradigm. Results showed that positive relationships correlated with FDI inflow into Malaysia; namely, interest rate and imports of goods and services need to be strengthened to ensure higher level of FDI. Malaysia’s GDP was found signifcant and its negative influence needs to be managed. On the other hand, Malaysia’s inflation rate was found positively insignificant whereas exchange rate was found negatively insignificant. That would require further investigation since the insignificant indicators don’t reflect real influence on FDI inflow into Malaysia