The Impact of Foreign Direct Investment on Housing Price in Malaysia

Ong, Zong Quan (2020) The Impact of Foreign Direct Investment on Housing Price in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

This study identifies the impact foreign direct investment on the housing price in Malaysia. This paper also examines the short run and long run relationship, as well as the causal relationship between the housing price in Malaysia with the independence variables including foreign direct investment (FDI), real Gross Domestic Product (GDP) and unemployment rate by employing quarter data over the period 1988-2018. Towards these purposes, this paper employed unit root test, error correction model (ECM) techniques, Granger Causality test and other diagnostic tests. While all of the variables are significant to determine the housing price in Malaysia except for GDP. The long-run estimation results suggest that foreign direct investment is having a positive and statistically significant impacts on the housing price in Malaysia.