Trade liberalization and foreign direct investment in Malaysia

A decision to establish foreign direct investment (FDI) involves a lot of critical thinking, especially in deciding a place to locate the investment. Evaluation and consideration comprise of costs and benefits of launching the FDI. This study focuses on time series data for the sample period of 1970...

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Main Authors: Nordin, Sabariah, Yusoff, Mohammed, Mat Ghani, Gairuzazmi
Format: Article
Language:English
Published: International Foundation for Research and Development 2015
Subjects:
Online Access:http://irep.iium.edu.my/50120/
http://irep.iium.edu.my/50120/
http://irep.iium.edu.my/50120/1/Trade_Liberalization_and_Foreign_Direct_Investment_in_Malaysia.pdf
id iium-50120
recordtype eprints
spelling iium-501202018-06-12T03:22:06Z http://irep.iium.edu.my/50120/ Trade liberalization and foreign direct investment in Malaysia Nordin, Sabariah Yusoff, Mohammed Mat Ghani, Gairuzazmi HF3000 By region or country HF5001 Business. Business Administration A decision to establish foreign direct investment (FDI) involves a lot of critical thinking, especially in deciding a place to locate the investment. Evaluation and consideration comprise of costs and benefits of launching the FDI. This study focuses on time series data for the sample period of 1970 to 2009. The main objective of this study is to identify the major determinant of the inward flows of FDI for Malaysia by employing the bounds testing (ARDL) approach to cointegration. Of all the variables being tested, trade openness is found to be the most influential variable in attracting the inflows of FDI as it shows consistent results in the short run as well as in the long run in all models being tested. Since the trade openness which represents the liberalization of the Malaysian economy could induce the inflows of FDI, some policy actions can be taken up to enhance the trade openness. International Foundation for Research and Development 2015-12 Article PeerReviewed application/pdf en http://irep.iium.edu.my/50120/1/Trade_Liberalization_and_Foreign_Direct_Investment_in_Malaysia.pdf Nordin, Sabariah and Yusoff, Mohammed and Mat Ghani, Gairuzazmi (2015) Trade liberalization and foreign direct investment in Malaysia. Information Management And Business Review, 7 (6). pp. 11-23. ISSN 2220-3796 http://ifrnd.org/journal/index.php/imbr/article/view/1178/1178
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic HF3000 By region or country
HF5001 Business. Business Administration
spellingShingle HF3000 By region or country
HF5001 Business. Business Administration
Nordin, Sabariah
Yusoff, Mohammed
Mat Ghani, Gairuzazmi
Trade liberalization and foreign direct investment in Malaysia
description A decision to establish foreign direct investment (FDI) involves a lot of critical thinking, especially in deciding a place to locate the investment. Evaluation and consideration comprise of costs and benefits of launching the FDI. This study focuses on time series data for the sample period of 1970 to 2009. The main objective of this study is to identify the major determinant of the inward flows of FDI for Malaysia by employing the bounds testing (ARDL) approach to cointegration. Of all the variables being tested, trade openness is found to be the most influential variable in attracting the inflows of FDI as it shows consistent results in the short run as well as in the long run in all models being tested. Since the trade openness which represents the liberalization of the Malaysian economy could induce the inflows of FDI, some policy actions can be taken up to enhance the trade openness.
format Article
author Nordin, Sabariah
Yusoff, Mohammed
Mat Ghani, Gairuzazmi
author_facet Nordin, Sabariah
Yusoff, Mohammed
Mat Ghani, Gairuzazmi
author_sort Nordin, Sabariah
title Trade liberalization and foreign direct investment in Malaysia
title_short Trade liberalization and foreign direct investment in Malaysia
title_full Trade liberalization and foreign direct investment in Malaysia
title_fullStr Trade liberalization and foreign direct investment in Malaysia
title_full_unstemmed Trade liberalization and foreign direct investment in Malaysia
title_sort trade liberalization and foreign direct investment in malaysia
publisher International Foundation for Research and Development
publishDate 2015
url http://irep.iium.edu.my/50120/
http://irep.iium.edu.my/50120/
http://irep.iium.edu.my/50120/1/Trade_Liberalization_and_Foreign_Direct_Investment_in_Malaysia.pdf
first_indexed 2023-09-18T21:10:49Z
last_indexed 2023-09-18T21:10:49Z
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