Does FDI inflow crowd out domestic investment in Malaysia? / Maliah Mohd Hayon

This project paper is to study on the crowding out effect domestic investment in Malaysia due to FDI inflow. This study also attempted to identify the effects of FDI inflows towards economic growth and domestic investment. The data used for this study collected on the yearly basis data from the period 1974 until 2004. Collected data will be analyzed using computer software known as SPSS. The method that chooses to analyze the data called single regressions. The single regression models have been used to determine the effect between the independent and dependent variable. This study found that FDI has positive effects on economic growth and to domestic investment. This study also found that FDI has statistically significant to domestic investment. After analyzed all the data, the findings does not support the view that FDI inflows crowd out domestic investment in Malaysia.