The quality of institution and foreign direct investmnet (FDI) in Malaysia

Since the 1990’s, institutional 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 in regards to small open economies. This paper attempts to investigat...

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Main Authors:	Zulkefly Abdul Karim, Mohd Azlan Shah Zaidi, Mohd Adib Ismail, Bakri Abdul Karim
Format:	Article
Language:	English
Published:	FEP 2012
Online Access:	http://journalarticle.ukm.my/5692/ http://journalarticle.ukm.my/5692/ http://journalarticle.ukm.my/5692/1/vol3ch6.pdf

id	ukm-5692
recordtype	eprints
spelling	ukm-56922016-12-14T06:39:12Z http://journalarticle.ukm.my/5692/ The quality of institution and foreign direct investmnet (FDI) in Malaysia Zulkefly Abdul Karim, Mohd Azlan Shah Zaidi, Mohd Adib Ismail, Bakri Abdul Karim, Since the 1990’s, institutional 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 in regards to small open economies. This paper attempts to investigate the role of institutions in regards to the inflow of FDI in Malaysia’s small open economy of Malaysia. Using the bounds testing approach (ARDL model), empirical findings reveal that a long-run relationship exists between FDI and institutional variables. Several institutional variables are found to play prominent roles in influencing the inflow of FDI, namely governmental stability, bureaucracy and corruption. Thus, providing and maintaining the quality of domestic institutions alongside the implementation of FDI friendly policies would be beneficial to Malaysian economic growth stemming from foreign investment. FEP 2012 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/5692/1/vol3ch6.pdf Zulkefly Abdul Karim, and Mohd Azlan Shah Zaidi, and Mohd Adib Ismail, and Bakri Abdul Karim, (2012) The quality of institution and foreign direct investmnet (FDI) in Malaysia. Asian Journal of Accounting and Governance, 3 . pp. 61-69. ISSN 2180-3838 http://www.ukm.my/ajag/issues.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	Since the 1990’s, institutional 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 in regards to small open economies. This paper attempts to investigate the role of institutions in regards to the inflow of FDI in Malaysia’s small open economy of Malaysia. Using the bounds testing approach (ARDL model), empirical findings reveal that a long-run relationship exists between FDI and institutional variables. Several institutional variables are found to play prominent roles in influencing the inflow of FDI, namely governmental stability, bureaucracy and corruption. Thus, providing and maintaining the quality of domestic institutions alongside the implementation of FDI friendly policies would be beneficial to Malaysian economic growth stemming from foreign investment.
format	Article
author	Zulkefly Abdul Karim, Mohd Azlan Shah Zaidi, Mohd Adib Ismail, Bakri Abdul Karim,
spellingShingle	Zulkefly Abdul Karim, Mohd Azlan Shah Zaidi, Mohd Adib Ismail, Bakri Abdul Karim, The quality of institution and foreign direct investmnet (FDI) in Malaysia
author_facet	Zulkefly Abdul Karim, Mohd Azlan Shah Zaidi, Mohd Adib Ismail, Bakri Abdul Karim,
author_sort	Zulkefly Abdul Karim,
title	The quality of institution and foreign direct investmnet (FDI) in Malaysia
title_short	The quality of institution and foreign direct investmnet (FDI) in Malaysia
title_full	The quality of institution and foreign direct investmnet (FDI) in Malaysia
title_fullStr	The quality of institution and foreign direct investmnet (FDI) in Malaysia
title_full_unstemmed	The quality of institution and foreign direct investmnet (FDI) in Malaysia
title_sort	quality of institution and foreign direct investmnet (fdi) in malaysia
publisher	FEP
publishDate	2012
url	http://journalarticle.ukm.my/5692/ http://journalarticle.ukm.my/5692/ http://journalarticle.ukm.my/5692/1/vol3ch6.pdf
first_indexed	2023-09-18T19:44:51Z
last_indexed	2023-09-18T19:44:51Z
_version_	1777405831981039616

The quality of institution and foreign direct investmnet (FDI) in Malaysia

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