Economic Freedom, Macroeconomic Fundamentals and Foreign Direct Investment in Fast Emerging Brics and Malaysia

Authors

  • Catherina S.F. Ho Universiti Teknologi MARA, Malaysia
  • Noryati Ahmad Univeristi Teknologi MARA, Malaysia
  • Hayati Mohd Dahan Univeristi Teknologi MARA, Malaysia

DOI:

https://doi.org/10.32890/ijbf2013.10.1.3

Keywords:

FDI, Trade openness, Economic freedom, Macroeconomic fundamentals

Abstract

This study investigates the major factors that determine the inflow of foreign direct investment (FDI) into fast emerging countries: Brazil, China, India, Russia, South Africa (BRICS) and Malaysia. Two sets of factors are identified: macroeconomic and country specific fundamentals. The period of analysis is 1977-2010. The study provides empirical evidence that economic growth, government consumption and trade openness are vital for FDI. In addition, country specific infrastructure quality and economic freedom are also critical factors in determining FDI for this group of countries. Our findings have significant policy implications for the growth and development of these countries, particularly through foreign direct investments.

 

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Published

28-03-2013

Issue

Vol. 10 No. 1 (2013): International Journal of Banking and Finance (IJBF) Vol. 10, No.1, 2013

Section

Articles

How to Cite

Ho, C. S., Ahmad, N., & Mohd Dahan, H. (2013). Economic Freedom, Macroeconomic Fundamentals and Foreign Direct Investment in Fast Emerging Brics and Malaysia. International Journal of Banking and Finance, 10(1), 57-73. https://doi.org/10.32890/ijbf2013.10.1.3

Research impact

Harvested 2026-09-07
15 citations, from OpenAlex — the highest of the sources checked

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Identifiers DOI 10.32890/ijbf2013.10.1.3 OpenAlex W2993389307