Importance of FDI in Economic Growth and Development: A Study of Malaysia
Journal Title: International Journal of Business and Management Invention - Year 2018, Vol 7, Issue 8
Abstract
Malaysia is one of the fastest growing developing economies of the Asian countries with a GDP per capita of $9766 and Human Development Index of 0.78 and has been classified as an emerging economy by the World Bank. One of the major roles played in the growth process is the inflow of FDI that has largely contributed to the capital formation and technology development of the country. Inspired by it contribution, the paper tries to identify the factors affecting the inflow of FDI in Malaysia and the effect of FDI on the export concentration ratio of Malaysia. The paper identifies the factors that affect directly or indirectly the inflow of FDI in Malaysia. By using Generalised Least Square Regression technique the paper found that time spend on governance has played a crucial role in attracting FDI in Malaysia. Further, the inflow of FDI has contributed significantly in increasing the export concentration ratio of the country.
Authors and Affiliations
Devleena Majumdar, Minu Harlalka
Keywords
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