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
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Abstract
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.
| Item Type: | Article |
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| Keyword: | FDI , economic growth , Malaysia , FMLS |
| Subjects: | H Social Sciences > HC Economic history and conditions |
| Department: | FACULTY > Faculty of Business, Economics and Accounting |
| Depositing User: | NORAINI LABUK - |
| Date Deposited: | 21 Jun 2018 13:56 |
| Last Modified: | 21 Jun 2018 13:56 |
| URI: | https://eprints.ums.edu.my/id/eprint/20334 |
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