The determinants of foreign direct investment in manufacturing industry of Malaysia
Malaysia received, over the past decades, substanti al amounts of foreign direct investment (FDI) in its manufacturing industry whic h is an important engine of its economic growth. The main aim of this study is to investigate the long-run relationship between FDI and its location-related d etermina...
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| Format: | Article |
| Language: | English |
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Statistical Economic and Social Research and Training Centre for Islamic Countries
2015
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| Online Access: | https://eprints.ums.edu.my/id/eprint/20334/1/The%20determinants%20of%20foreign%20direct%20investment%20in%20manufacturing%20industry%20of%20Malaysia.pdf |
| _version_ | 1825713500858613760 |
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| author | Wong, Hock Tsen |
| author_facet | Wong, Hock Tsen |
| author_sort | Wong, Hock Tsen |
| collection | UMS |
| description | Malaysia received, over the past decades, substanti al amounts of foreign direct investment (FDI) in its manufacturing industry whic h is an important engine of its economic growth. The main aim of this study is to investigate the long-run relationship between FDI and its location-related d eterminants in the manufacturing industry of Malaysia over the period 1980-2002. The results of the Johansen (1988) co-integration method show that there is one co- integrating vector in each of the estimated models. Moreover, the results of the Phillips and Hansen (1990) fully-modified least squ ares (FMLS) estimator show that an increase in education, infrastructure, market size or current account balance leads to an increase in FDI whereas an increase in inflation or exchange rate leads to a decrease. The experience o f Malaysia in attracting FDI could be an example for other developing countries. |
| first_indexed | 2024-03-06T02:57:34Z |
| format | Article |
| id | ums.eprints-20334 |
| institution | Universiti Malaysia Sabah |
| language | English |
| last_indexed | 2024-03-06T02:57:34Z |
| publishDate | 2015 |
| publisher | Statistical Economic and Social Research and Training Centre for Islamic Countries |
| record_format | dspace |
| spelling | ums.eprints-203342018-06-21T05:56:51Z https://eprints.ums.edu.my/id/eprint/20334/ The determinants of foreign direct investment in manufacturing industry of Malaysia Wong, Hock Tsen HC Economic history and conditions Malaysia received, over the past decades, substanti al amounts of foreign direct investment (FDI) in its manufacturing industry whic h is an important engine of its economic growth. The main aim of this study is to investigate the long-run relationship between FDI and its location-related d eterminants in the manufacturing industry of Malaysia over the period 1980-2002. The results of the Johansen (1988) co-integration method show that there is one co- integrating vector in each of the estimated models. Moreover, the results of the Phillips and Hansen (1990) fully-modified least squ ares (FMLS) estimator show that an increase in education, infrastructure, market size or current account balance leads to an increase in FDI whereas an increase in inflation or exchange rate leads to a decrease. The experience o f Malaysia in attracting FDI could be an example for other developing countries. Statistical Economic and Social Research and Training Centre for Islamic Countries 2015 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/20334/1/The%20determinants%20of%20foreign%20direct%20investment%20in%20manufacturing%20industry%20of%20Malaysia.pdf Wong, Hock Tsen (2015) The determinants of foreign direct investment in manufacturing industry of Malaysia. Journal of Economic Cooperation and Development, 26 (2). pp. 91-110. ISSN 1308-7800 |
| spellingShingle | HC Economic history and conditions Wong, Hock Tsen The determinants of foreign direct investment in manufacturing industry of Malaysia |
| title | The determinants of foreign direct investment in manufacturing industry of Malaysia |
| title_full | The determinants of foreign direct investment in manufacturing industry of Malaysia |
| title_fullStr | The determinants of foreign direct investment in manufacturing industry of Malaysia |
| title_full_unstemmed | The determinants of foreign direct investment in manufacturing industry of Malaysia |
| title_short | The determinants of foreign direct investment in manufacturing industry of Malaysia |
| title_sort | determinants of foreign direct investment in manufacturing industry of malaysia |
| topic | HC Economic history and conditions |
| url | https://eprints.ums.edu.my/id/eprint/20334/1/The%20determinants%20of%20foreign%20direct%20investment%20in%20manufacturing%20industry%20of%20Malaysia.pdf |
| work_keys_str_mv | AT wonghocktsen thedeterminantsofforeigndirectinvestmentinmanufacturingindustryofmalaysia AT wonghocktsen determinantsofforeigndirectinvestmentinmanufacturingindustryofmalaysia |