This study examines the effect of inflation towards the foreign direct investment in Malaysia and Iran. The testing period for this study are ranges from year 1986 to 2016. The Augmented-Dickey Fuller (ADF) unit root test was used to test the stationary of variables, the exist of cointegration variables was tested by Johansen and Juselius test, Granger causality based on VECM framework was used to test the short run and long run relationship between variables and lastly the variance decomposition was conducted to test the variable are exogenous or endogenous. From the empirical results, it has shown the foreign direct investment has effects on gross domestic product in short run in Malaysia meanwhile in Iran there are no causality relation among the variables in short run.
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In-Text Citation: (Hong & Ali, 2020)
To Cite this Article: Hong, T. Y., & Ali, D. H. A. (2020). The Impact of Inflation Towards Foreign Direct Investment in Malaysia And Iran. International Journal of Academic Research in Business and Social Sciences, 10(6), 193–207.
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