Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model
Since 1990’s, institution factors have been regarded as playing important roles in stimulating foreign direct investments (FDI). However, empirical studies on their importance in affecting FDI are still lacking especially for small open economies. This paper attempts to investigate the role of ins...
| Main Authors: | , , , |
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| Format: | Conference or Workshop Item |
| Language: | English |
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2011
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| Online Access: | https://repo.uum.edu.my/id/eprint/4497/1/zul.pdf |
| _version_ | 1825740329123315712 |
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| author | Abdul Karim, Zulkefly Shah Zaidi, Mohd Azlan Ismail, Mohd Adib Abdul Karim, Bakri |
| author_facet | Abdul Karim, Zulkefly Shah Zaidi, Mohd Azlan Ismail, Mohd Adib Abdul Karim, Bakri |
| author_sort | Abdul Karim, Zulkefly |
| collection | UUM |
| description | Since 1990’s, institution factors have been regarded as playing important roles in stimulating foreign direct
investments (FDI). However, empirical studies on their importance in affecting FDI are still lacking especially for
small open economies. This paper attempts to investigate the role of institutions upon the inflow of foreign direct
investment (FDI) in a small open economy of Malaysia. Using bounds testing approach (ARDL model), the empirical findings reveal that there exists a long run relationship among FDI and the institution variables.Specifically, several institution variables namely government stability, bureaucracy, and corruption are found to play prominent roles in influencing the inflow of FDI. Thus, in attracting foreign investors, implementing FDI friendly policies by providing and maintaining the quality of domestic institutions would be beneficial to Malaysian economic growth. |
| first_indexed | 2024-07-04T05:25:13Z |
| format | Conference or Workshop Item |
| id | uum-4497 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:25:13Z |
| publishDate | 2011 |
| record_format | eprints |
| spelling | uum-44972016-04-21T04:27:55Z https://repo.uum.edu.my/id/eprint/4497/ Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model Abdul Karim, Zulkefly Shah Zaidi, Mohd Azlan Ismail, Mohd Adib Abdul Karim, Bakri HC Economic History and Conditions Since 1990’s, institution factors have been regarded as playing important roles in stimulating foreign direct investments (FDI). However, empirical studies on their importance in affecting FDI are still lacking especially for small open economies. This paper attempts to investigate the role of institutions upon the inflow of foreign direct investment (FDI) in a small open economy of Malaysia. Using bounds testing approach (ARDL model), the empirical findings reveal that there exists a long run relationship among FDI and the institution variables.Specifically, several institution variables namely government stability, bureaucracy, and corruption are found to play prominent roles in influencing the inflow of FDI. Thus, in attracting foreign investors, implementing FDI friendly policies by providing and maintaining the quality of domestic institutions would be beneficial to Malaysian economic growth. 2011-07-18 Conference or Workshop Item NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/4497/1/zul.pdf Abdul Karim, Zulkefly and Shah Zaidi, Mohd Azlan and Ismail, Mohd Adib and Abdul Karim, Bakri (2011) Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model. In: National Conference on the Tenth Malaysia Plan: Transformation Towards a High Income Advanced Economy, 18th July 2011, Seri Pacific Hotel, Kuala Lumpur. (Unpublished) http://ijmsconference.uum.edu.my/ |
| spellingShingle | HC Economic History and Conditions Abdul Karim, Zulkefly Shah Zaidi, Mohd Azlan Ismail, Mohd Adib Abdul Karim, Bakri Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model |
| title | Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model |
| title_full | Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model |
| title_fullStr | Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model |
| title_full_unstemmed | Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model |
| title_short | Institutions and foreign direct investment (FDI) in Malaysia: Empirical evidence using ARDL model |
| title_sort | institutions and foreign direct investment fdi in malaysia empirical evidence using ardl model |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/4497/1/zul.pdf |
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