Impact of foreign direct investment (FDI) on housing affordability index: vector autoregressive model / Anderson Chua Chen Lu ... [et al.]

Chua Chen Lu, Anderson and Kueh, Jerome and Sze Wei, Yong and Yau, Josephine and Liwan, Audrey (2020) Impact of foreign direct investment (FDI) on housing affordability index: vector autoregressive model / Anderson Chua Chen Lu ... [et al.]. Journal of International Business, Economics and Entrepreneurship (JIBE), 5 (2). pp. 1-11. ISSN 2550-1429

Official URL: https://jibe.uitm.edu.my

Abstract

This paper aims to investigate the short and long term association between Foreign Direct Investment (FDI) and overall consumer affordability in Malaysia Real Estate Sector using Vector Autoregressive model. Sample period used is 2009:Q1 to 2017:Q4. FDI is scapegoated as the leading cause of decreasing affordability in real estate. In most cases, FDI on real estate contributes to the rising income of the country. Increasing income promotes demand to a higher threshold level. Thus, theoretically will cause housing price to increase. Through this study, evidence of no cointegration and absence of Granger causality converge towards deficiency of relationship among FDI and Housing Affordability Index (HAI). Findings pointed out FDI is not the cause of decreasing HAI.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Chua Chen Lu, Anderson
andersonch960627@gmail.com,
Kueh, Jerome
UNSPECIFIED
Sze Wei, Yong
UNSPECIFIED
Yau, Josephine
UNSPECIFIED
Liwan, Audrey
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Investment, capital formation, speculation
H Social Sciences > HG Finance > Investment, capital formation, speculation > Investment companies. Investment trusts. Mutual funds
Divisions: Universiti Teknologi MARA, Selangor > Puncak Alam Campus > Faculty of Business and Management
Journal or Publication Title: Journal of International Business, Economics and Entrepreneurship (JIBE)
UiTM Journal Collections: UiTM Journal > Journal of International Business, Economics and Entrepreneurship (JIBE)
ISSN: 2550-1429
Volume: 5
Number: 2
Page Range: pp. 1-11
Keywords: real esate, Vector Autoregressive, Granger Causality
Date: December 2020
URI: https://ir.uitm.edu.my/id/eprint/40687
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