Analysing the impact of financial market on Malaysian foreign direct investment

This study investigates the impact of financial market on foreign direct investment (FDI) in Malaysia using yearly data over the period of 1981 to 2014. Using stock market and credit market as proxy of financial market, the Johansen cointegration test and Vector Error Correction Model (VECM) are emp...

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Main Author:	Nur Dhania, Abdul Samad
Format:	Thesis
Language:	eng eng
Published:	2016
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/6113/1/s817761_01.pdf https://etd.uum.edu.my/6113/2/s817761_02.pdf
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id	my-uum-etd.6113
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Nordin, Sabariah
topic	HG Finance
spellingShingle	HG Finance Nur Dhania, Abdul Samad Analysing the impact of financial market on Malaysian foreign direct investment
description	This study investigates the impact of financial market on foreign direct investment (FDI) in Malaysia using yearly data over the period of 1981 to 2014. Using stock market and credit market as proxy of financial market, the Johansen cointegration test and Vector Error Correction Model (VECM) are employed to determine the long run relationship. The VECM results indicate that the stock market does not have significant influence on FDI while the credit market has a significant and positive impact on FDI. This shows that even though the financial market does not become the main source of financing for foreign investors, its development is still an important agenda in attracting foreign investors to invest in Malaysia. Hence, this study provides insights for policy recommendation in the future in promoting FDI. In order to attract foreign investment, policy makers should not just focus on providing various incentives, but also should look at other factors which may indirectly affect the flows of FDI, such as the development of the financial market.
format	Thesis
qualification_name	other
qualification_level	Master's degree
author	Nur Dhania, Abdul Samad
author_facet	Nur Dhania, Abdul Samad
author_sort	Nur Dhania, Abdul Samad
title	Analysing the impact of financial market on Malaysian foreign direct investment
title_short	Analysing the impact of financial market on Malaysian foreign direct investment
title_full	Analysing the impact of financial market on Malaysian foreign direct investment
title_fullStr	Analysing the impact of financial market on Malaysian foreign direct investment
title_full_unstemmed	Analysing the impact of financial market on Malaysian foreign direct investment
title_sort	analysing the impact of financial market on malaysian foreign direct investment
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2016
url	https://etd.uum.edu.my/6113/1/s817761_01.pdf https://etd.uum.edu.my/6113/2/s817761_02.pdf
_version_	1747828023031234560
spelling	my-uum-etd.61132021-04-19T03:12:59Z Analysing the impact of financial market on Malaysian foreign direct investment 2016 Nur Dhania, Abdul Samad Nordin, Sabariah School of Economics, Finance & Banking School of Economics, Finance and Banking HG Finance This study investigates the impact of financial market on foreign direct investment (FDI) in Malaysia using yearly data over the period of 1981 to 2014. Using stock market and credit market as proxy of financial market, the Johansen cointegration test and Vector Error Correction Model (VECM) are employed to determine the long run relationship. The VECM results indicate that the stock market does not have significant influence on FDI while the credit market has a significant and positive impact on FDI. This shows that even though the financial market does not become the main source of financing for foreign investors, its development is still an important agenda in attracting foreign investors to invest in Malaysia. Hence, this study provides insights for policy recommendation in the future in promoting FDI. In order to attract foreign investment, policy makers should not just focus on providing various incentives, but also should look at other factors which may indirectly affect the flows of FDI, such as the development of the financial market. 2016 Thesis https://etd.uum.edu.my/6113/ https://etd.uum.edu.my/6113/1/s817761_01.pdf text eng public https://etd.uum.edu.my/6113/2/s817761_02.pdf text eng public other masters Universiti Utara Malaysia Adam, A. M., & Tweneboah, G. (2009). Foreign direct investment and stock market development: Ghana's evidence. International Research Journal of Finance and Economics, 26, 178-185. Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2004). FDI and economic growth: the role of local financial markets. Journal of International Economics, 64(1), 89-112. Alfaro, L., Chanda, A., Kalemli-Ozcan, S., & Sayek, S. (2010). 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Analysing the impact of financial market on Malaysian foreign direct investment

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