Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia

Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia

This study examines the relationship between macroeconomics variables, business environment variables and FDI inflow in Malaysia. The data is collected for the period of 21 years from 1991-2012 from World Bank data base for FDI inflow and seven variable, including macroeconomics variables (GPD growt...

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Main Author: Norhayatie, Abu Bakar
Format: Thesis
Language:eng
eng
Published: 2015
Subjects:
HD3611-4730.9 Industrial Policy
The state and industrial
HG Finance
Online Access:https://etd.uum.edu.my/4621/1/s811080.pdf
https://etd.uum.edu.my/4621/2/s811080_abstract.pdf
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id my-uum-etd.4621
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Shahzad, Arfan
topic HD3611-4730.9 Industrial Policy
The state and industrial
HG Finance
spellingShingle HD3611-4730.9 Industrial Policy
The state and industrial
HG Finance
Norhayatie, Abu Bakar
Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia
description This study examines the relationship between macroeconomics variables, business environment variables and FDI inflow in Malaysia. The data is collected for the period of 21 years from 1991-2012 from World Bank data base for FDI inflow and seven variable, including macroeconomics variables (GPD growth rate, exchange rate, export, imports and inflation), business environment variables (corruption index and political stability). The data has been analysed by using Eviews 6.0 and SPSS 19.0. Descriptive analysis, Pearson’s Correlation analysis and Ordinary Least Square (OLS) were used as for inferential statistics. This study used the Augmented Dickey Fuller (ADF) test to check the stationary of the data using Eviews and Pearson’s correlation using SPSS. The finding of this study revealed that macro-economic variable such as import, export and the exchange rate has a significant relationship with the FDI inflow but economic growth found insignificant relationship with FDI inflow. It also has been found that business environment variables, corruption control and political stability have significant relationship with FDI inflow, but inflation rate has an insignificant relationship with FDI inflow. The findings from this study suggested that for macroeconomics and environment variables such as import, export, exchange rate, corruption control and political stability are very important in order to influence FDI inflows. Political stability and corruption control are the most significant variables for FDI inflow in Malaysia. It is further suggested that these variables may keep in consideration in the future course of action. This study also suggests the policy recommendations for foster the economic activities in the Malaysian economy by attracting FDI and rising its inflow
format Thesis
qualification_name masters
qualification_level Master's degree
author Norhayatie, Abu Bakar
author_facet Norhayatie, Abu Bakar
author_sort Norhayatie, Abu Bakar
title Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia
title_short Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia
title_full Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia
title_fullStr Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia
title_full_unstemmed Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia
title_sort macroeconomics variables and business environment influence the foreign direct investment (fdi) inflows in malaysia
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2015
url https://etd.uum.edu.my/4621/1/s811080.pdf
https://etd.uum.edu.my/4621/2/s811080_abstract.pdf
_version_ 1747827767664181248
spelling my-uum-etd.46212021-04-04T08:15:46Z Macroeconomics variables and business environment influence the foreign direct investment (FDI) inflows in Malaysia 2015 Norhayatie, Abu Bakar Shahzad, Arfan Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HD3611-4730.9 Industrial Policy. The state and industrial HG Finance This study examines the relationship between macroeconomics variables, business environment variables and FDI inflow in Malaysia. The data is collected for the period of 21 years from 1991-2012 from World Bank data base for FDI inflow and seven variable, including macroeconomics variables (GPD growth rate, exchange rate, export, imports and inflation), business environment variables (corruption index and political stability). The data has been analysed by using Eviews 6.0 and SPSS 19.0. Descriptive analysis, Pearson’s Correlation analysis and Ordinary Least Square (OLS) were used as for inferential statistics. This study used the Augmented Dickey Fuller (ADF) test to check the stationary of the data using Eviews and Pearson’s correlation using SPSS. The finding of this study revealed that macro-economic variable such as import, export and the exchange rate has a significant relationship with the FDI inflow but economic growth found insignificant relationship with FDI inflow. It also has been found that business environment variables, corruption control and political stability have significant relationship with FDI inflow, but inflation rate has an insignificant relationship with FDI inflow. The findings from this study suggested that for macroeconomics and environment variables such as import, export, exchange rate, corruption control and political stability are very important in order to influence FDI inflows. Political stability and corruption control are the most significant variables for FDI inflow in Malaysia. It is further suggested that these variables may keep in consideration in the future course of action. This study also suggests the policy recommendations for foster the economic activities in the Malaysian economy by attracting FDI and rising its inflow 2015 Thesis https://etd.uum.edu.my/4621/ https://etd.uum.edu.my/4621/1/s811080.pdf text eng public https://etd.uum.edu.my/4621/2/s811080_abstract.pdf text eng public masters masters Universiti Utara Malaysia Adams, S. (2009). Foreign Direct investment, domestic investment, and economic growth in Sub-Saharan Africa. Journal of Policy Modeling, 31(6), 939-949. Ahmed, A. D., Cheng, E., & Messinis, G. (2011). The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries. Applied Economics, 43(26), 3719-3731. Ahmed, A. D., Cheng, E., &Messinis, G. (2011). The role of exports, FDI and imports in development: evidence from Sub-Saharan African countries. Applied Economics, 43(26), 3719-3731. Alfaro, L. 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