The factors affecting Foreign Direct Investment (FDI) in Malaysia from 1988 to 2017 / Nurul Farrah 'Ain Abdul Aziz

The purpose of this study is to investigate the factors that affecting foreign direct
investment in Malaysia. The independent variables are gross domestic product,
government consumption expenditure, imports, exports, tax revenues, and inflation
while the dependent variable is foreign direct investment (FDI). The study was
conducted for 30 years from 1988 to 2017. Ordinary Least Square (OLS) results shows
exports, tax revenues, and inflation are having a positive relationship with foreign direct
investment. Only one variable which is tax revenues comes out with 0.7826
insignificant but it shows the positive relationship with foreign direct investment
actually. This study also using the Granger Causality test to identify whether each of
the variables are long run relationship or in short run relationship. The result shows that
exports and inflation having two ways of relationship. In addition, the other variables
shows only one way of relationship with foreign direct investment.