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International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Determinants of Foreign Direct Investment (FDI)

Muhamad Huzaifah Asbullah, Mohd Shahidan Shaari, Noorazeela Zainol Abidin, Siti Nor Junita Mohd Radzi

http://dx.doi.org/10.6007/IJAREMS/v11-i3/14643

Open access

This study aims to identify the determinants of FDI from previous literature. It can be concluded that infrastructure can have a positive effect on FDI. It can also conclude that trade openness can cause FDI to escalate. Inflation can give negative results to FDI. Higher inflation may cause the return of FDI to be lower. Hence FDI drops. It can be said that there is a positive and negative link between corruption and FDI inflows. Market size can positively and significantly influence FDI. Therefore, the government should increase market size, infrastructure and trade openness but reduce inflation and corruption to increase FDI.

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In-Text Citation: (Asbullah et al., 2022)
To Cite this Article: Asbullah, M. H., Shaari, M. S., Abidin, N. Z., & Radzi, S. N. J. M. (2022). Determinants of Foreign Direct Investment (FDI). International Journal of Academic Research in Economics and Management and Sciences, 11(3), 151–168.