Tang, Chor FoonYip, Chee YinÖztürk, İlhan12.07.20192019-07-1212.07.20192019-07-1220140264-99931873-6122https://doi.org/10.1016/j.econmod.2014.08.017https://hdl.handle.net/20.500.12507/585WOS: 000345807300030This study attempts to analyse the determinants of inward FDI in the electrical and electronic (E&E) industry in Malaysia using bounds test approach for the 1980-2008 period. It is found that GDP, real exchange rate, financial development corporate income tax, macroeconomic uncertainty and social uncertainty factors significantly affect inward FDI in E&E sector in Malaysia. Empirical results indicate that GDP, real exchange rate, financial development and macroeconomic uncertainty are positively related to inward FDI in E&E sector in the long run. However, corporate income tax and social uncertainty have a negative impact on inward FDI in E&E sector. Furthermore, the Granger causality results also indicate that all explanatory variables Granger-cause FDI in the long-run, but in the short-run only macroeconomic and social uncertainties Granger-cause FDI. The impact of social uncertainty is found tote greater than macroeconomic uncertainty. Thus, foreign investors in E&E sector seem to be more concern about the level of social security and safety when choosing their investment destination.eninfo:eu-repo/semantics/closeAccessFDIDeterminants of FDIMalaysiaArticle43287292WOS:0003458073000302-s2.0-8490746607610.1016/j.econmod.2014.08.017Q1Q3