The economic factors affecting foreign direct investment in Malaysia / Nur Afieqa Arifin

Any country without a doubt will look upon many factors in order to earn the growth of economy and to be a more developed country. Thus, it can be justify that foreign direct investment is one of the factors that could help in the development and growth of a certain country. Foreign direct investment can be generalized as the investment made by a specific country in another country. From the data of fluctuations of foreign direct investment of Malaysia throughout the past years, my attention has been drawn to investigate the Factors that are affecting the inflows of foreign direct investment of Malaysia. The dependent variable or the explained variable for this research is the foreign direct investment in Malaysia whereas the independent or the explanatory variables of this research are economic growth, exchange rate, market size, degree of openness, inflation rate and total debt service which are the economic factors of Malaysia. Expected is the like of something could happen. Through the eyes of a researcher, they could evaluate what their studies will conclude. Thus, empirical results show that the variables of market size, economic growth, degree of openness and total debt service significantly and positively affect the foreign direct investment of Malaysia. Other than that, the variable of exchange rate and inflation rate on the other hand negatively affect the foreign direct investment of Malaysia.