Inflow foreign direct investment relationships in Malaysia / Nur Syamin Adlin Mohd Yusof

When the government values constructive the inflow on the foreign direct investment as one of the effort in the growth and development of the economy in Malaysia. Foreign direct investment brings benefits towards the country in terms of new job creation, stellar growth in economy, as well as driving valuable technology and skills transfer. This paper aims to identify the equilibrium relationship between the inflows of foreign direct investment and their determinants which is the broad money supply, consumer price index, exchange rate, gross domestic product and trade openness. The study would test on the unconditional error correction approach, the regression analysis and the stationary test. Annual data covers from 1975 to 2017. The observation found out reject the null hypothesis of no co-integration between the series. The result show that broad money supply, exchange rates, gross domestics' product and trade openness have a positive impact towards the inflows of foreign direct investment.