Page 50 – 56 | Norsyuhada Azmi

DOI: 10.30690/ijassi.22.04


The purpose of this research is to identify the determinants of Foreign Direct Investment (FDI) inflows in Malaysia for the period 1970 – 2014. By doing this research, the significant determinants could be determined and it will enhance the economic performance of the country. The Ordinary Least Square (OLS) method is used in this research. Market size, exchange rate and trade openness are the significant influence the Foreign Direct Investment (FDI) inflows in Malaysia. For market size and trade openness, there are positive relationships while for exchange rate it has negative relationship with Foreign Direct Investment (FDI) inflows in Malaysia. In addition, the result from this research can be used by government and policy makers to implement the good policies and as guidelines in decision making for choosing the right policies.

Keywords: Foreign Direct Investment, Market Size, Exchange Rate, Trade Openness

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