Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)

This study analysis the factors affecting foreign direct investment inflow in manufacturing sector in Malaysia in between 1974 to 2009, mainly focused on two determinants; domestic credit to private sector by local commercial banks and domestic direct investment. Growth Domestic product and the Trad...

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Main Authors: Nezakati, Hossein, Fakhreddin, Farzad, Vaighan, Behzad Mahmoudi
Format: Article
Language:English
Published: IDOSI Publications 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22809/
http://psasir.upm.edu.my/id/eprint/22809/1/Do%20local%20banks%20credits%20to%20private%20sector%20and%20domestic%20direct%20investments%20affect%20FDI%20inflow.pdf
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author Nezakati, Hossein
Fakhreddin, Farzad
Vaighan, Behzad Mahmoudi
author_facet Nezakati, Hossein
Fakhreddin, Farzad
Vaighan, Behzad Mahmoudi
author_sort Nezakati, Hossein
building UPM Institutional Repository
collection Online Access
description This study analysis the factors affecting foreign direct investment inflow in manufacturing sector in Malaysia in between 1974 to 2009, mainly focused on two determinants; domestic credit to private sector by local commercial banks and domestic direct investment. Growth Domestic product and the Trade Openness are also included in the model respectively; the results indicate that Gross Domestic Product of manufacturing, Trade openness, domestic credit to private sector and domestic direct investment significantly influenced the level of foreign direct investment inflow into Malaysia. This study manipulate the cointegration test method and Vector Auto Regression Granger causality between logarithm of foreign direct investment, domestic credit to private sector and domestic direct investment respectively which illustrates both variables are cointegrated and also Granger caused of foreign direct investment.
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publishDate 2011
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spelling upm-228092015-12-10T03:41:04Z http://psasir.upm.edu.my/id/eprint/22809/ Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence) Nezakati, Hossein Fakhreddin, Farzad Vaighan, Behzad Mahmoudi This study analysis the factors affecting foreign direct investment inflow in manufacturing sector in Malaysia in between 1974 to 2009, mainly focused on two determinants; domestic credit to private sector by local commercial banks and domestic direct investment. Growth Domestic product and the Trade Openness are also included in the model respectively; the results indicate that Gross Domestic Product of manufacturing, Trade openness, domestic credit to private sector and domestic direct investment significantly influenced the level of foreign direct investment inflow into Malaysia. This study manipulate the cointegration test method and Vector Auto Regression Granger causality between logarithm of foreign direct investment, domestic credit to private sector and domestic direct investment respectively which illustrates both variables are cointegrated and also Granger caused of foreign direct investment. IDOSI Publications 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22809/1/Do%20local%20banks%20credits%20to%20private%20sector%20and%20domestic%20direct%20investments%20affect%20FDI%20inflow.pdf Nezakati, Hossein and Fakhreddin, Farzad and Vaighan, Behzad Mahmoudi (2011) Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence). World Applied Sciences Journal, 15 (11). pp. 1576-1583. ISSN 1818-4952; ESSN: 1991-6426 http://idosi.org/wasj/wasj15%2811%292011.htm
spellingShingle Nezakati, Hossein
Fakhreddin, Farzad
Vaighan, Behzad Mahmoudi
Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)
title Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)
title_full Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)
title_fullStr Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)
title_full_unstemmed Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)
title_short Do local banks credits to private sector and domestic direct investments affect FDI inflow? (Malaysia evidence)
title_sort do local banks credits to private sector and domestic direct investments affect fdi inflow? (malaysia evidence)
url http://psasir.upm.edu.my/id/eprint/22809/
http://psasir.upm.edu.my/id/eprint/22809/
http://psasir.upm.edu.my/id/eprint/22809/1/Do%20local%20banks%20credits%20to%20private%20sector%20and%20domestic%20direct%20investments%20affect%20FDI%20inflow.pdf