Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris

Foreign Direct Investment (FDI) show a crucial role in bring on the development and economic advancement of a country. In addition, cultivate countries look massively on FDI to advance their economy as they aspect capital shortage for their development process. In capitals and technology FDI not onl...

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Main Author: Mohamad Idris, Farah Hannah
Format: Student Project
Language:English
Published: Faculty of Business and Management 2018
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/31710/
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author Mohamad Idris, Farah Hannah
author_facet Mohamad Idris, Farah Hannah
author_sort Mohamad Idris, Farah Hannah
building UiTM Institutional Repository
collection Online Access
description Foreign Direct Investment (FDI) show a crucial role in bring on the development and economic advancement of a country. In addition, cultivate countries look massively on FDI to advance their economy as they aspect capital shortage for their development process. In capitals and technology FDI not only lead, but also skills toward developing countries. Ended up helping the countries to develop faster by pleasing the country's needs. The heavy growth performances experienced by Malaysia economy largely depends on the FDI. FDI make economic growth by developing capital arrangement through the promotion of export growth, inflation of production capacity, and creation of employment in Malaysia. FDI inflows of Malaysia initiated fluctuating from 1996 to 2010 and this high volatility of Malaysia FDI inflows bring the researchers' attention to study the factors that affecting FDI decision in Malaysia by using the annual data from year 1987-2016. Multiple linear regressions model is enforced to study the relationship between explanatory variables (growth domestic product, inflation rate, exchange rate, and trade openness) and explained variable (Malaysia FDI). Empirical results show that growth domestic product, and inflation rate significantly and positively affect Malaysia FDI decision. In other hands, exchange rates also significantly affect Malaysia FDI decision; when Ringgit Malaysia depreciates against other currencies, FDI decision of Malaysia decrease. Last but not least, trade openness lagged to establish a significant relationship with Malaysia FDI decision.
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spelling uitm-317102020-07-29T08:16:45Z https://ir.uitm.edu.my/id/eprint/31710/ Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris Mohamad Idris, Farah Hannah Foreign investments. Country risk Foreign Direct Investment (FDI) show a crucial role in bring on the development and economic advancement of a country. In addition, cultivate countries look massively on FDI to advance their economy as they aspect capital shortage for their development process. In capitals and technology FDI not only lead, but also skills toward developing countries. Ended up helping the countries to develop faster by pleasing the country's needs. The heavy growth performances experienced by Malaysia economy largely depends on the FDI. FDI make economic growth by developing capital arrangement through the promotion of export growth, inflation of production capacity, and creation of employment in Malaysia. FDI inflows of Malaysia initiated fluctuating from 1996 to 2010 and this high volatility of Malaysia FDI inflows bring the researchers' attention to study the factors that affecting FDI decision in Malaysia by using the annual data from year 1987-2016. Multiple linear regressions model is enforced to study the relationship between explanatory variables (growth domestic product, inflation rate, exchange rate, and trade openness) and explained variable (Malaysia FDI). Empirical results show that growth domestic product, and inflation rate significantly and positively affect Malaysia FDI decision. In other hands, exchange rates also significantly affect Malaysia FDI decision; when Ringgit Malaysia depreciates against other currencies, FDI decision of Malaysia decrease. Last but not least, trade openness lagged to establish a significant relationship with Malaysia FDI decision. Faculty of Business and Management 2018 Student Project NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/31710/1/PPb_FARAH%20HANNAH%20MOHAMAD%20IDRIS%20BM%20J%2018_5.pdf Mohamad Idris, Farah Hannah (2018) Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris. (2018) [Student Project] (Submitted)
spellingShingle Foreign investments. Country risk
Mohamad Idris, Farah Hannah
Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris
title Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris
title_full Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris
title_fullStr Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris
title_full_unstemmed Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris
title_short Factors affecting foreign direct investment decision in Malaysia / Farah Hannah Mohamad Idris
title_sort factors affecting foreign direct investment decision in malaysia / farah hannah mohamad idris
topic Foreign investments. Country risk
url https://ir.uitm.edu.my/id/eprint/31710/