Macroeconomic determinants of foreign direct investments / Nor Sakri Razak

Foreign Direct Investment or FDI for short can be define or refer to as investment made by non-resident or foreign investors which can also include individual or even a company in a host or different country. They can cither establish business operations or even acquire business assets from the host country. This study Will focus on the FDI from China as being at the top of the chart for FDI recipient within the Asia region by using some of the prominent or well used Macroeconomic determinants or factors on previous research regarding to FDI. The Study Will try to uncover if the factors chosen does have significant impact towards China FDI and hope the result could help shed more light or understanding toward the FDI subject. FDI also have long and always been believed to help boost the economics of a country, this seem to be without any solid or Concrete proof but it is a fact that it offers its own absolute advantages or benefits for the development of a country. The factors or What could be consider as variables that was chosen for the study are market size With GDP growth being its proxy, exchange rate, inflation and trade openness. The result that could be found further With in this study revealed that only inflation found to be significant but surprisingly With a positive sign. As for the Other variables only exchange rate were found to be negatively Signed but does not proof to be statistically significant along With inflation and trade Openness.