Factor influence of foreign direct investment (FDI) in Malaysia/ Nor' Ain Aziz

Foreign Direct Investment (FDI) has contributed significantly to the transformation of the Malaysia economy as reflected by the changing composition of its exports and the rising the share of FDI (Islam et al., 2015). Thus, this study attempted to find out factor influence of FDI in Malaysia. It aims on finding the impact of the four important variables which is trade openness (trade), infrastructure facility (fixed telephone subscription), macroeconomic stability (inflation) and market size (GDP) towards foreign direct investment of Malaysia. The research uses time-series data for a single country which is Malaysia for a period of 35 years that is between 1981 to 2015. The methodology of conducting this research is by Ordinary Least Squares (OLS) method which contains seven classical assumptions that must be met in order for the Ordinary Least Square estimators to be best available for the research conducted. Data collection was made by using the secondary data as it is the most convenient data collection method. The data was collected from The World Bank accessed in 2017 using the World Development Indicators (WDI). Based on the research conducted, there are significant relationship between trade openness (trade), infrastructure facility (fixed telephone subscriptions), macroeconomic stability (inflation) and market size (GDP).