Foreign portfolio investment inflows and economic performance in Malaysia: a disaggregated analysis

Duasa, Jarita and Kassim, Salina (2008) Foreign portfolio investment inflows and economic performance in Malaysia: a disaggregated analysis. Gadjah Mada International Journal of Business, 10 (3). pp. 313-330. ISSN 1411-1128

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Abstract

Based on disaggregated data, this study empirically examines the importance of foreign portfolio investment (FPI) on the Malaysian economic performance. The study adopts the vector error correction model to analyze the relationships between FPI inflows from major investing countries, namely the United States, United Kingdom, Singapore and Hong Kong and Malaysia’s real GDP using quarterly data covering the period of Q1:1991 to Q3:2007. For further inferences, the study adopts an innovation accounting by simulating variance decompositions and impulse response functions. The study finds that there is a significant positive association between Malaysia’s GDP and the UK FPI inflow, particularly in the long run.

Item Type:	Article (Journal)
Additional Information:	3479/3474
Uncontrolled Keywords:	Foreign portfolio investment, Economic performance, VECM, Impulse Response, Variance Decomposition
Subjects:	H Social Sciences > HB Economic Theory H Social Sciences > HG Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Prof. Dr. Salina Kassim
Date Deposited:	18 Oct 2011 17:01
Last Modified:	18 Oct 2011 17:01
URI:	http://irep.iium.edu.my/id/eprint/3474

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