The factors that affect foreign direct investment in Malaysia / Nur Amalina Mohammed Wazir

Foreign Direct Investment (FDI) has contributed to the transformation of the Malaysian economy. From previous study, it had been identified that there were some factor that contribute to the FDI inflows into the country. However, the contribution of each of the factors vary by countries .The research objective are to the factor that affect Foreign Direct Investment in Malaysia. The independent variables for this research are inflation rate, exchanges rate and interest rate. While dependent variable is Foreign Direct Investment (FDI). The data are taken from Database in UiTM Library and Database. The data will be collected in Malaysia only. The time period for this research were from 1987 to 2014 which is for 28 years. The data will be collected based on secondary data. The data that will be used in the research is Time Series. In this research the data will be analyzed by using the Econometric View 7.0(E-Views). Based on the result obtained, it shows that FDI have significant positive relationship with inflation rate. However, FDI inflows were negatively related with exchange rate and interest rate.