Macroeconomic determinants of foreign direct investment (FDI) in Malaysia / Muhammad Azlan Mohd Ashhari

This paper aim is to investigate the factors that influence the foreign direct investment in
Malaysia. The determinants are being measure in order to know whether it affect the
amount of the investment. Recently, the FDI in Malaysia shows that our country was
underperforming. This situation worried our leaders because the declining of FDI could
affect economic growth of Malaysia conversely. The dependent variable is foreign direct
investment (FDI) and the independent variables to be used are macroeconomic factors
which are gross domestic product (GDP), interest rate (IR), exchange rate (ER), inflation
rate (IR), unemployment rate (UR), company tax (CT) and labour cost (LC) . The study is
an attempt to investigate and examine the performance of foreign direct investment in
Malaysia over 2000 – 2013 by using the quarterly basis of time series of the variables
will be collected from the Thomsonone data stream website. Multiple regression analysis
will be used in order to reveal about the relationships between the dependent and the
independent variables that has been chosen or pick by me. The result of this paper would
provide us with the indicate view and the macroeconomic factors that can affect the
foreign direct investment in Malaysia.