On the causal link between foreign direct investment and growth: comparison in Malaysia and China / Siti Norfizah Mahadi

This paper analyses on the causal link between foreign direct investment and growth in developing countries likes Malaysia and China. The that will be analyzed are gross domestic product (GDP), inflation rate, current account balance and exchange rate as determinants of the level of foreign direct investment inflows. The purpose of this study is to examine the that effect foreign investment in Malaysia and China from 1974 to 2006. This study used Regression analysis method which is single and multiple regression to determine the coefficient of determination (R-Square) and ANOVA test to predict the relationship of the variables. From the result to make comparison which factor is a significant contributor to foreign direct investment inflow for Malaysia and China.