The Impact of Infrastructure on Foreign Direct Investment in Malaysia

Ahmad, Nor Asma; Ismail, Normaz Wana; Nordin, Nurhaiza

doi:10.17722/ijme.v5i1.797

Cited by 9 publications

(8 citation statements)

References 8 publications

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“…As seen in Model 5, considering the coefficients of the variables, lnRTRANSPORT has the most significant positive effect (1,8030) on lnRFDI. It has been determined that, except for the trade openness, the findings obtained in the study were found to be in parallel with the literature (Tufaner and Şirin, 2021;Khadaroo and Seetanah, 2010;Wheeler and Mody, 1992;Loree and Guisinger, 1995;Mike and Oransay, 2015;Morisset, 2001;Azolibe et al, 2020;Asiedu, 2002;Pradhan et al, 2013;Bakar et al, 2012;Rehman et al, 2011;Ahmad et al, 2015). While the trade openness ratio is expected to affect the inward FDI positively, the findings do not match the literature.…”

Section: Methodology Descriptives Empirical Results and Discussioncontrasting

confidence: 49%

Doğrudan Yabanci Yatirimlarin Çeki̇lmesi̇nde Ulaştirma Altyapisinin Etki̇si̇ni̇n İncelenmesi̇

ATİOĞLU

ŞAHİN²

2022

Hitit Sosyal Bilimler Dergisi

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Many factors play a role in determining the level of development in countries, and one of the main factors is FDI. To attract foreign capital to the country, it is necessary to realize the developments desired by the foreign capital and to pave the way for investments. The strong transportation infrastructure contributes to the development of the country not only in economic terms but also in many social and cultural aspects. With all these contributions, the benefits of transportation infrastructure investments make countries attractive for foreign capital. In this study, the relationship between investments in transportation infrastructure and foreign direct investments (FDI) was examined using the Arellano-Bond difference Generalized Method of Moments (GMM). The data set of the study covers the period between 2010 and 2017, and the analysis was carried out using data from 30 OECD countries. According to the findings, it has been determined that total transportation infrastructure investment expenditures positively affect foreign direct investments.

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Section: Methodology Descriptives Empirical Results and Discussioncontrasting

confidence: 49%

Doğrudan Yabanci Yatirimlarin Çeki̇lmesi̇nde Ulaştirma Altyapisinin Etki̇si̇ni̇n İncelenmesi̇

ATİOĞLU

ŞAHİN²

2022

Hitit Sosyal Bilimler Dergisi

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“…Infrastructure One of the factors that can influence FDI is infrastructure. This has been evidenced by many previous studies such as (Nguea, 2020;Sabir et al, 2019;Amune and Ogunjimi, 2019;Raghdsifa et al, 2018;Wekesa et al, 2016;Ngangue, 2016;Nourzad et al, 2014;Ahmad et al, 2015 Mohammadvandnahidi et al, 2012;Rehman, 2011;Seetanah and Khadaroo, 2009). They produced mixed findings on the effect of infrastructure on FDI, albeit with different methods.…”

Section: Literature Reviewsupporting

confidence: 57%

“…Mohammadvandnahidi et al (2012); Ahmad et al (2015); Amune and Ogunjimi (2019); Nguea (2020) used the ARDL approach to study the long-run and short-run relationships between FDI and infrastructure. Mohammadvandnahidi et al (2012) covered data between 1975 and 2007 in Iran.…”

Section: Literature Reviewmentioning

confidence: 99%

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Determinants of Foreign Direct Investment (FDI)

Asbullah¹,

Shaari²,

Abidin³

et al. 2022

IJAREMS

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This study aims to identify the determinants of FDI from previous literature. It can be concluded that infrastructure can have a positive effect on FDI. It can also conclude that trade openness can cause FDI to escalate. Inflation can give negative results to FDI. Higher inflation may cause the return of FDI to be lower. Hence FDI drops. It can be said that there is a positive and negative link between corruption and FDI inflows. Market size can positively and significantly influence FDI. Therefore, the government should increase market size, infrastructure and trade openness but reduce inflation and corruption to increase FDI.

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“…He claims the theory is unable to justify the surges in succeeding FDIs. Bakar et al (2012), conducted a study on the impact of infrastructure on foreign direct investment, the case of Malaysia and established a positive and significant influence of infrastructure Ahmed et al (2015), analyzed the impact of infrastructure on foreign direct investment in Malaysia and found out that infrastructure is a significant determinant of foreign direct inflows into Malaysia. Other factors like GDP and Exchange rate were also found to be significant.…”

Section: The Eclectic Theorymentioning

confidence: 99%

Foreign Direct Investments Into Eastern Africa Region: The Infrastructure Development Nexus

Bosire

2020

IJEFI

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Infrastructure development is an essential element in economic growth and development. Good infrastructure fosters low transaction costs hence making production efficient and attracting foreign direct investments. However, there has not been adequate scholarly focus on how infrastructure development can affect the flow of foreign direct investments hence this paper sought to fill this gap. This paper utilized panel data from 12 eastern Africa countries from 2004 through 2017. Data on Infrastructure development variables was obtained from the Africa Development Bank's, Africa Infrastructure Development Index, that of control variables from the World Development Indicators kept by the World Bank and that of Foreign direct investments from UNCTAD. Due to the presence of heteroscedasticity in sample data, the study opted for a Generalized Least Squares (GLS) estimation method. The study established a significant relationship between infrastructure development and foreign direct investment inflows into the eastern Africa region. However, only Africa Infrastructure Index and Electricity Composite Index were positive while Transport Composite Index, ICT Composite Index and Water Supply and Sanitation Index were negative. Reasons being, Transport, ICT, water and sanitation are considered as social development factors. One of the control variables, total tax and contribution rate was negative indicating a unit increase in tax leads to a decrease in foreign direct investments whereas market size was positive and significant. The study recommends to policy makers to allocate resources into infrastructure development as an enabler of production efficiency, appraise the tax system to ensure a balance is stroked between taxing of investment returns and generating adequate tax revenue from multinationals and enhance its markets through multilateral and preferential trade agreements and regional integration agreements.

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The Impact of Infrastructure on Foreign Direct Investment in Malaysia

Cited by 9 publications

References 8 publications

Doğrudan Yabanci Yatirimlarin Çeki̇lmesi̇nde Ulaştirma Altyapisinin Etki̇si̇ni̇n İncelenmesi̇

Doğrudan Yabanci Yatirimlarin Çeki̇lmesi̇nde Ulaştirma Altyapisinin Etki̇si̇ni̇n İncelenmesi̇

Determinants of Foreign Direct Investment (FDI)

Foreign Direct Investments Into Eastern Africa Region: The Infrastructure Development Nexus

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