The inflows of foreign direct investment (FDI) are important for a country's economic development, but the world market for FDI has become more competitive. This paper empirically analyses the exchange rate movements and foreign direct investment (FDI) relationship using annual data on ASEAN economies, that is, Malaysia, the Philippines, Thailand, and Singapore. By employing ARDL bounds test approach, the empirical results show the existence of significant long-run cointegration between exchange rate and FDI for the case of Singapore, Malaysia, and the Philippines with all countries recording negative coefficient implying that the appreciation of Singapore dollar, Malaysian ringgit, and the Philippine peso has a positive impact on FDI inflows. Using the ECM based ARDL approach for causality test, both Singapore and the Philippines show long-run bidirectional causality between exchange rate and FDI whereas long-run unidirectional causality running from the exchange rate to FDI in Malaysia. Furthermore, this study also found that short-run unidirectional causality running from the exchange rate to FDI exists in Singapore.
This paper explores the extent to which foreign entry mode and cultural distance influence the performance of Malaysian Multinational Enterprise (MNE) subsidiaries established in foreign countries. Data for this study were obtained from 13 Malaysian MNEs, which provided information on a total of 26 subsidiaries located in 16 countries. Implications of the study findings are discussed and suggestions for future research are provided.
Low-cost housing plays a vital role in the development process especially in providing accommodation to those who are less fortunate and the lower income group. This effort is also a step in overcoming the squatter problem which could cripple the competitive drive of the local community especially in the state of Sabah, Malaysia. This article attempts to look into the influencing factors to low-cost housing in Sabah namely the government's budget (allocation) for low cost housing projects and Sabah's total population. At the same time, this study will attempt to show the implication from the development and economic crises which occurred during period 1971 to 2000 towards the provision of low cost houses in Sabah. Empirical analyses were conducted using the multiple linear regression method, stepwise and also the dummy variable approach in demonstrating the link. The empirical result shows that the government's budget for low-cost housing is the main contributor to the provision of low-cost housing in Sabah. The empirical decision also suggests that economic growth namely Gross Domestic Product (GDP) did not provide a significant effect to the low-cost housing in Sabah. However, almost all major crises that have beset upon Malaysia's economy caused a significant and consistent effect to the low-cost housing in Sabah especially the financial crisis which occurred in mid 1997.
This study attempts to test a hypothesis of the relationship between the tourism sector and economic growth in Malaysia. Although a large number of literatures indicate that there is strong correlation between the tourism industry and economic growth, not much is known on the dynamic inter-relationship between these variables. This study employs recently developed ARDL bounds testing approach to cointegration. The estimated result based on the long run time series behaviour for the number of tourist arrival and economic growth indicator shows that these variables are not cointegrated. In the short run analysis, we found that economic growth has unidirectional Granger caused to the tourism activities. Recognition of the existence of a causal relationship between international tourism and economic growth has important implications for the development of different tourism activities and policy decisions. In order to attract tourism activities, effort must be taken to promote stability as well as sustainability of the economy of this country.
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