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The Quality of Institutions and Foreign Direct Investment (FDI) in Malaysia

Asian Journal of Accounting and Governance

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Field Value
 
Title The Quality of Institutions and Foreign Direct Investment (FDI) in Malaysia
 
Creator Abdul Karim, Zulkefly
Zaidi, Mohd Azlan Shah
Ismail, Mohd Adib
Abdul Karim, Bakri
 
Subject Foreign Direct Investment (FDI); ARDL
 
Description Since the 1990’s, institutional factors have been regarded as playing important roles in stimulating foreign direct investments (FDI). However, empirical studies on their importance in affecting FDI are still lacking, especially in regards to small open economies. This paper attempts to investigate the role of institutions in regards to the inflow of FDI in Malaysia’s small open economy of Malaysia. Using the bounds testing approach (ARDL model), empirical findings reveal that a long-run relationship exists between FDI and institutional variables. Several institutional variables are found to play prominent roles in influencing the inflow of FDI, namely governmental stability, bureaucracy and corruption. Thus, providing and maintaining the quality of domestic institutions alongside the implementation of FDI friendly policies would be beneficial to Malaysian economic growth stemming from foreign investment.
 
Publisher Penerbit UKM
 
Contributor —
 
Date 2014-06-18
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://ejournal.ukm.my/ajac/article/view/6516
10.17576/ajag-2012-3-6516
 
Source Asian Journal of Accounting and Governance; Vol 3 (2012); 61-69
2180-3838
 
Language eng
 
Relation http://ejournal.ukm.my/ajac/article/view/6516/2795