The Determinants Of Foreign Direct Investment Flow To Malaysia

• Main Author: Nawin, Tharumarajah
• Format: Thesis
• Language: English; English
• Published: 2001
• Subjects: HG Finance
• Online Access: http://etd.uum.edu.my/359/1/NAWIN_AL_THARUMARAJAH__-_The_determinants_of_foreign_direct_investment__....pdf; http://etd.uum.edu.my/359/2/1%2ClNAWIN_AL_THARUMARAJAH__-_The_determinants_of_foreign_direct_investment__....pdf; http://etd.uum.edu.my/359/

As the Malaysian economy continued to record rapid progress on the back of sustained economic growth, the contribution of Foreign Direct Investment to the Malaysian economy expanded at a faster pace since the mid 1970's. Thus, the major concern of this paper is to discuss and assess the determinants or influences that led to the expansion of inward capital inflows to Malaysia over the period of 1970-1998. In this paper, a regression analysis will be carried out to determine the importance of six major locational factors, which was expected to entice foreign firms to locate productions in Malaysia. The result show that factors like Gross Domestic Product, domestic investment, labour cost and interest rates were significant in influencing Foreign Direct Investment to Malaysia.