The determinants of FDI inflow in manufacturing sector of Malaysia

The role of foreign direct investment (FDI) to create competition, technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study...

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Main Authors: Fakhredin, Farzad, Nezakati, Hossein *, Vaighan, Behzad Mahmoudi
Format: Conference or Workshop Item
Published: 2010
Subjects:
Online Access:http://eprints.sunway.edu.my/2051/
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author Fakhredin, Farzad
Nezakati, Hossein *
Vaighan, Behzad Mahmoudi
author_facet Fakhredin, Farzad
Nezakati, Hossein *
Vaighan, Behzad Mahmoudi
author_sort Fakhredin, Farzad
building SU Institutional Repository
collection Online Access
description The role of foreign direct investment (FDI) to create competition, technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study investigates the determinants of FDI in manufacturing sector of Malaysia over 2000- 2009. Using quarterly data we find a and significant effect of domestic credit to private sector provided by banking system and development expenditure of government in this sector. Meanwhile, the effect of 2007- recession on FDI inflow of Malaysia is positive and significant, though due this recession reduction of the world aggregate FDI reduced the growth of FDI inflow of manufacturing sector of Malaysia. The effect of corruption on FDI's growth is also negative and significant.
first_indexed 2025-11-14T21:19:21Z
format Conference or Workshop Item
id sunway-2051
institution Sunway University
institution_category Local University
last_indexed 2025-11-14T21:19:21Z
publishDate 2010
recordtype eprints
repository_type Digital Repository
spelling sunway-20512022-04-28T08:47:22Z http://eprints.sunway.edu.my/2051/ The determinants of FDI inflow in manufacturing sector of Malaysia Fakhredin, Farzad Nezakati, Hossein * Vaighan, Behzad Mahmoudi HG Finance The role of foreign direct investment (FDI) to create competition, technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study investigates the determinants of FDI in manufacturing sector of Malaysia over 2000- 2009. Using quarterly data we find a and significant effect of domestic credit to private sector provided by banking system and development expenditure of government in this sector. Meanwhile, the effect of 2007- recession on FDI inflow of Malaysia is positive and significant, though due this recession reduction of the world aggregate FDI reduced the growth of FDI inflow of manufacturing sector of Malaysia. The effect of corruption on FDI's growth is also negative and significant. 2010 Conference or Workshop Item PeerReviewed Fakhredin, Farzad and Nezakati, Hossein * and Vaighan, Behzad Mahmoudi (2010) The determinants of FDI inflow in manufacturing sector of Malaysia. In: GSM-FEP-AGBA Conference 2010-7th Annual AGBA World Congress, 1-3 December 2010, Palm Garden, Putrajaya, Malaysia. https://www.academia.edu/3613324/The_Determinants_Of_FDI_Inflow_In_Manufacturing_Sector_Of_Malaysia_7th_Annual_AGBA_Congres_2010_Malaysia
spellingShingle HG Finance
Fakhredin, Farzad
Nezakati, Hossein *
Vaighan, Behzad Mahmoudi
The determinants of FDI inflow in manufacturing sector of Malaysia
title The determinants of FDI inflow in manufacturing sector of Malaysia
title_full The determinants of FDI inflow in manufacturing sector of Malaysia
title_fullStr The determinants of FDI inflow in manufacturing sector of Malaysia
title_full_unstemmed The determinants of FDI inflow in manufacturing sector of Malaysia
title_short The determinants of FDI inflow in manufacturing sector of Malaysia
title_sort determinants of fdi inflow in manufacturing sector of malaysia
topic HG Finance
url http://eprints.sunway.edu.my/2051/
http://eprints.sunway.edu.my/2051/