Host country-specific factors causing outwards foreign direct investment from Malaysia
This study analyzes macroeconomic and institutional factors of the host countries in attracting outwards foreign direct investment (OFDI) from Malaysia. Results show that primary motives behind Malaysian OFDI are to seek growing markets and natural resources. Foreign economy’s depreciating currenc...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2016
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| Online Access: | http://journalarticle.ukm.my/10770/ http://journalarticle.ukm.my/10770/ http://journalarticle.ukm.my/10770/1/jeko_50%281%29-6.pdf |
| Summary: | This study analyzes macroeconomic and institutional factors of the host countries in attracting outwards foreign direct
investment (OFDI) from Malaysia. Results show that primary motives behind Malaysian OFDI are to seek growing
markets and natural resources. Foreign economy’s depreciating currency with respect to Ringgit Malaysia, lower private
sector lending rate, shorter geographical distance from Malaysia and government accountability are also important
pull factors. Malaysian OFDI is significantly low in ASEAN Member States (AMS) and in the developed states. Policy
implications thus include generation of higher OFDI towards AMS given the strategic importance of ASEAN Economic
Community and in developed regions to access foreign technology. |
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