Malaysian Process Of Local And Private Foreign Investment Economics Essay
当地和外国私人在马来西亚投资的经济学论文
在20世纪70年代后期和80年代早期，在世界经济陷入衰退之后的第二次石油危机时，马来西亚经济发生了翻天覆地的变化。到了80年代中期，马来西亚政府背负了严重的经济负担，这迫使它减少支出和重组其财务状况。这崩溃的初步结果引起上世纪80年代中期马来西亚经济经历了极低的国内生产总值（GDP）增长。由于马来西亚经济高度依赖于棕榈油、锡和橡胶的出口利润，导致其经济动荡。
经历了经济低迷时期的这些困难，国家和政府开始制定有利于外商直接投资（FDI）的更多元化、自由的经济政策来改善经济基础。选择更自由的政策——特别是关于制造业的政策——使其更有利于外国投资是因为以制造业为代表的外国投资是马来西亚吸引外国投资的最大部分。由此，马来西亚将调整为工业国，这对于私人部门了解和适应外商直接投资的行为是必要的。由于政府意识工业部门在国家经济增长的过程中扮演了重要的角色，政府制定了各种不仅能吸引当地也能吸引外国私人投资的政策。
CHAPTER 1
INTRODUCTION
During the late 1970s and early 1980s, when the world economy went into recession following the second oil crisis, the Malaysian economy underwent some drastic changes. By the middle of the 1980s, the Malaysian government was experiencing severe financial burden, which force it to reduce expenditure and restructuring its financial position. This collapse of primary commodities had also caused the Malaysia economy to experience negative gross domestic product (GDP) growth in the mid-1980s. The Malaysians economy was highly dependent on profit from export of palm oil, tin and rubber, causing an upheaval in economy
Following these difficulties in economic downturn, government look forward to diversify the economic base of the country and government initiate for more liberal economic policies which favours the foreign direct investment (FDI). The reason to choose more liberal policies favouring FDI especially in manufacturing sector, is because manufacturing industry represents for the largest portion of foreign investment in Malaysia. Since, Malaysian was adjusted towards an industrial country, it was necessary to private sectors to understand and adapt with the behaviour of FDI. Realizing the important role that can be played by industrial sector in the country economic growth, the government formulated various measures to attract not only local but also private foreign investment.
1.2 Definition of Foreign Direct Investment
Foreign direct investment (FDI) refers to a movement of international capital that involves ownership and control. It is most frequently discussed in the context of the multinational corporation (MNC). This term refer to corporation that taking place and distribute goods and services in two or more countries but under the direction of the home office or headquarters located in one country. FDI opted normal commercial market transaction, and is inspired by commercial negotiation resulting in benefits to both the investors and the host countries.
The classification of FDI is according to the foreign investor and to the host country. In terms of investors, the enlargement of the firm into another country through the transfer of equity capital, management, technology or other knowledge can take the following forms: (a) horizontal investment, which involve the production abroad of the same line of products as at home country, (b) vertical investment, by moving abroad either backwards of one or more stages in the firm’s production process towards the sources raw materials, or forward nearer the consumer through the acquiring of outlets and (c) conglomerate diversification. In terms of host country, FDI can be divided into: (a) import-substituting; (b) export-increasing and (c) others. Import-substituting involves the production in the host country of those products that were formerly been imported. Export-increasing FDI represents the seeking of new sources of inputs, such as raw materials and the production of intermediates as well as final products.
1.3 Problems Statement
This paper intends to show empirically determinants of foreign direct investment (FDI) in Malaysia. The empirical analysis of FDI is done by limiting those determinants on gross domestic product (GDP), growth rate of GDP and gross capital formation. There may be other variables, which determine the FDI in our country (political stability, infrastructure facilities and etc), and there are not included
