Determinants of International Capital Flows: The Case of Malaysia
This paper examines the determinants of international capital inflows into Malaysia in the forms of pull and push factors. The results from Johansen and Juselius cointegration test confirm the existence of a long run stable equilibrium relationship among the variables in the model. In addition, t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Zant World Press, Australia
2010
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/17030/ http://ir.unimas.my/id/eprint/17030/1/Determinants%20of%20International%20Capital%20Flows%20%28abstract%29.pdf |
| _version_ | 1848838189939163136 |
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| author | Muhammad Asraf, Abdullah Shazali, Abu Mansor Puah, Chin Hong |
| author_facet | Muhammad Asraf, Abdullah Shazali, Abu Mansor Puah, Chin Hong |
| author_sort | Muhammad Asraf, Abdullah |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper examines the determinants of international capital inflows into
Malaysia in the forms of pull and push factors. The results from Johansen
and Juselius cointegration test confirm the existence of a long run stable
equilibrium relationship among the variables in the model. In addition, the
Error Correction Model (ECM) has been utilized to detect the long run
divergence from the equilibrium relationship between the explanatory
variables and capital inflows in the specified model. The Wald tests from
the ECM further support the notion that real GDP, domestic Treasury bill
rate, budget balance, current account balance and US production do
Granger cause capital inflows into Malaysia in the short run. The empirical
findings in this study show that the pull factors especially budget balance
and current account are imperative in explaining inflows of capital into
Malaysia. Another interesting finding is the role of real factor as denoted by
domestic and industrial country’s outputs in affecting the capital inflows. |
| first_indexed | 2025-11-15T06:51:36Z |
| format | Article |
| id | unimas-17030 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:51:36Z |
| publishDate | 2010 |
| publisher | Zant World Press, Australia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-170302017-08-07T06:36:16Z http://ir.unimas.my/id/eprint/17030/ Determinants of International Capital Flows: The Case of Malaysia Muhammad Asraf, Abdullah Shazali, Abu Mansor Puah, Chin Hong HB Economic Theory This paper examines the determinants of international capital inflows into Malaysia in the forms of pull and push factors. The results from Johansen and Juselius cointegration test confirm the existence of a long run stable equilibrium relationship among the variables in the model. In addition, the Error Correction Model (ECM) has been utilized to detect the long run divergence from the equilibrium relationship between the explanatory variables and capital inflows in the specified model. The Wald tests from the ECM further support the notion that real GDP, domestic Treasury bill rate, budget balance, current account balance and US production do Granger cause capital inflows into Malaysia in the short run. The empirical findings in this study show that the pull factors especially budget balance and current account are imperative in explaining inflows of capital into Malaysia. Another interesting finding is the role of real factor as denoted by domestic and industrial country’s outputs in affecting the capital inflows. Zant World Press, Australia 2010-03 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17030/1/Determinants%20of%20International%20Capital%20Flows%20%28abstract%29.pdf Muhammad Asraf, Abdullah and Shazali, Abu Mansor and Puah, Chin Hong (2010) Determinants of International Capital Flows: The Case of Malaysia. Global Economy and Finance Journal, 3 (1). pp. 31-43. ISSN 1834-5883 https://www.researchgate.net/publication/228868731 |
| spellingShingle | HB Economic Theory Muhammad Asraf, Abdullah Shazali, Abu Mansor Puah, Chin Hong Determinants of International Capital Flows: The Case of Malaysia |
| title | Determinants of International Capital Flows: The Case of Malaysia |
| title_full | Determinants of International Capital Flows: The Case of Malaysia |
| title_fullStr | Determinants of International Capital Flows: The Case of Malaysia |
| title_full_unstemmed | Determinants of International Capital Flows: The Case of Malaysia |
| title_short | Determinants of International Capital Flows: The Case of Malaysia |
| title_sort | determinants of international capital flows: the case of malaysia |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/17030/ http://ir.unimas.my/id/eprint/17030/ http://ir.unimas.my/id/eprint/17030/1/Determinants%20of%20International%20Capital%20Flows%20%28abstract%29.pdf |