Impact of economic determinants on Foreign Direct Investment (FDI) in Malaysia / Nazatul Shaheera Mohd Hanapiah

In past decades, world’s FDI have been increase tremendously. However, fluctuations keep on occurring as the FDI flows continue to rise and decline. Nations viewed FDI as one of the crucial parts for their economic improvement. The objectives of study are to determine if there is relationship FDI with exchange rate, GDP, inflation and trade openness as well as to measure the most significant determinants of FDI in Malaysia. Annual data from 1977-2017 was analyzed using OLS discloses that GDP is positive and highly significant. In parallel, other variable such shows mixed results. Hence, Malaysia government can enhance and prosper the country’s GDP. Product and services produced are main component of GDP, thus government can make sure the product and services of Malaysia have high marketability in order to increase GDP as well as FDI.