Empirical analysis on emerging issues of Malaysia outward FDI from macroeconomic perspective
AbstractThe evidence of Malaysia outward FDI has become obvious particularly in the 1990s. Despite remain as the preference of FDI destinations, Malaysia also emerged as the fifth largest investor among the developing economies in Asia region (UNCTAD, 2005). In view of that, this study intends to examine the macroeconomic determinants of outward FDI of Malaysia, namely real income, exchange rate, trade openness and interest rate. The Johansen and Juselius cointegration test and the vector error correction model are utilized in this study to analyze the quarterly data from 1991:Q1 to 2005:Q4. We found that outward FDI of Malaysia is positively affected by all the variables under study in long run. However, the interest rate does not Granger cause outward FDI in the short run.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 37680.
Date of creation: 2009
Date of revision:
Publication status: Published in International Review of Business Research Paper 1.5(2009): pp. 124-134
Outward FDI; VECM;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
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- Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
- Chowdhury, Mamta B, 2011. "India’s Outward Foreign Direct Investment: Closed Doors to Open Souk," MPRA Paper 32828, University Library of Munich, Germany.
- Kayam, Saime Suna, 2009. "Home market determinants of FDI outflows from developing and transition economies," MPRA Paper 16781, University Library of Munich, Germany.
- Kueh, Jerome Swee-Hui & Puah, Chin Hong & Liew, Venus Khim-Sen, 2010. "Macroeconomic Determinants of Direct Investment Abroad of Singapore," MPRA Paper 47243, University Library of Munich, Germany, revised 2013.
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