The determinants of FDI inflow in manufacturing sector of Malaysia

Fakhredin, Farzad and Nezakati, Hossein * and Vaighan, Behzad Mahmoudi (2010) The determinants of FDI inflow in manufacturing sector of Malaysia. In: GSM-FEP-AGBA Conference 2010-7th Annual AGBA World Congress, 1-3 December 2010, Palm Garden, Putrajaya, Malaysia.

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The role of foreign direct investment (FDI) to create competition, technology transfer, reducing unemployment and generating productive economic growth is undeniable. Therefore, policy makers and economists seek to identify the factors that affect FDI in different sectors. Accordingly, this study investigates the determinants of FDI in manufacturing sector of Malaysia over 2000- 2009. Using quarterly data we find a and significant effect of domestic credit to private sector provided by banking system and development expenditure of government in this sector. Meanwhile, the effect of 2007- recession on FDI inflow of Malaysia is positive and significant, though due this recession reduction of the world aggregate FDI reduced the growth of FDI inflow of manufacturing sector of Malaysia. The effect of corruption on FDI's growth is also negative and significant.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: foreign direct investment; domestic credit; development expenditure; corruption perception index
Subjects: H Social Sciences > HG Finance
Divisions: Others > Non Sunway Academics
Sunway University > Sunway University Business School > Dept. Marketing
Depositing User: Ms Yong Yee Chan
Related URLs:
Date Deposited: 28 Apr 2022 08:47
Last Modified: 28 Apr 2022 08:47

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