ISSN: 2222-6990
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Foreign direct investment (FDI) is a key element in this rapidly evolving international economic integration, also called globalisation. FDI provides a means for creating direct, stable and long-lasting links between economies. This paper empirically examines the role of selected macroeconomic variables in determining FDI inflows in the context of China and Malaysia. We used time series data from 1980 to 2015. We co-integrated it with the autoregressive distributed lag approach to examine the relationship between technology development, foreign direct investment and economic growth. The study's findings revealed that ICT development, inflation rate and labour significantly influence FDI inflows in China, while only the inflation rate influence FDI inflows in Malaysia. From the results, we emphasise that focusing on improving economic growth can attract more foreign investors in future. Besides, encouraging industries to use more technology in their production can gain confident foreign investors to invest in the market.
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In-Text Citation: (Norehan et al., 2022)
To Cite this Article: Norehan, M. A. H., Ridzuan, A. R., Ismail, S., Razak, M. I. M., & Shaari, M. S. (2022). Assessing the Impact of Information and Communication Technology and Economic Growth on Foreign Direct Investment Inflows in China and Malaysia. International Journal of Academic Research in Business and Social Sciences, 12(9), 434 – 447.
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