Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/20057
Title: The determinants of foreign direct investment and the role of foreign direct investment in Malaysia.
Authors: Ngadiman, Nelly.
Keywords: DRNTU::Business::Finance::International finance::Foreign direct investment
Issue Date: 1995
Abstract: There is a growing recognition of the importance of foreign direct investment in contributing to developing countries' economic performance and international competitiveness. From the point of view of developing countries, FDI offers several advantages over borrowing to achieve growth. First, equity financing requires payment only when the investment earns a profit, while debt requires payment irrespective of the economic conditions of the host countries. Second, payments to foreign direct investors are under the purview of the host country, while debt servicing requirements, being dependent on interest rates set in world financial markets, are not as easily controlled by developing countries. Third, only a portion of the profits from direct investment are repatriated as most are reinvested in the host country whereas the principal and interest servicing the debt have to be paid. Finally, direct investment allows the matching of the maturity structure of the earnings from an investment and the repayment of capital used to finance it, with little effect on the short-term financing problems of host countries.
URI: http://hdl.handle.net/10356/20057
Rights: NANYANG TECHNOLOGICAL UNIVERSITY
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:NBS Theses

Files in This Item:
File Description SizeFormat 
NgadimanNelly95.pdf
  Restricted Access
10.73 MBAdobe PDFView/Open

Page view(s) 50

286
Updated on Nov 29, 2020

Download(s) 50

2
Updated on Nov 29, 2020

Google ScholarTM

Check

Items in DR-NTU are protected by copyright, with all rights reserved, unless otherwise indicated.