An analysis of FDI drivers in D-8 countries: does domestic credit matters?

• Main Authors: Chin, Sze Min, Chong, Elvan Yu Fan, Hng, Chong Cheng, Kow, Hui Xin, So, Kah Mun
• Format: Final Year Project / Dissertation / Thesis
• Published: 2019
• Subjects: HG Finance
• Online Access: http://eprints.utar.edu.my/3886/1/fyp_BF_2019_CSM_%2D_1607188.pdf; http://eprints.utar.edu.my/3886/

An investigation was carried out to study the relationship of the exchange rate, GDP, inflation, labour cost, trade openness, domestic credit with foreign direct investment. Moreover, we also studied the domestic credit performed as an interaction term with macroeconomics variables and affect foreign direct investment. Pooled OLS, REM and FEM was carried out as model comparison among the variables. The results of model 1 showed that the GDP, inflation, labour cost, trade openness, and domestic credit are significantly influenced FDI in D-8 countries. On the other hand, the results of model 2 showed that only inflation and trade openness significantly affect the FDI inflows in D-8 countries.