Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model

This paper aims to investigate the short and long term association between Foreign Direct Investment (FDI) and overall consumer affordability in Malaysia Real Estate Sector using Vector Autoregressive model. Sample period used is 2009:Q1 to 2017:Q4. FDI is scapegoated as the leading cause of decrea...

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Main Authors: Anderson Chua Chen Lu, Jerome Kueh, Yong Sze Wei, Josephine Yau, Audrey Liwan
Format: Article
Language:English
Published: UiTM Press 2020-12-01
Series:Journal of International Business, Economics and Entrepreneurship
Subjects:
Online Access:https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1211
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author Anderson Chua Chen Lu
Jerome Kueh
Yong Sze Wei
Josephine Yau
Audrey Liwan
author_facet Anderson Chua Chen Lu
Jerome Kueh
Yong Sze Wei
Josephine Yau
Audrey Liwan
author_sort Anderson Chua Chen Lu
collection DOAJ
description This paper aims to investigate the short and long term association between Foreign Direct Investment (FDI) and overall consumer affordability in Malaysia Real Estate Sector using Vector Autoregressive model. Sample period used is 2009:Q1 to 2017:Q4. FDI is scapegoated as the leading cause of decreasing affordability in real estate. In most cases, FDI on real estate contributes to the rising income of the country. Increasing income promotes demand to a higher threshold level. Thus, theoretically will cause housing price to increase. Through this study, evidence of no cointegration and absence of Granger causality converge towards deficiency of relationship among FDI and Housing Affordability Index (HAI). Findings pointed out FDI is not the cause of decreasing HAI.
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institution Kabale University
issn 2550-1429
language English
publishDate 2020-12-01
publisher UiTM Press
record_format Article
series Journal of International Business, Economics and Entrepreneurship
spelling doaj-art-d5e66c069d0d44b089995be0659fa6b72024-11-22T07:20:16ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292020-12-0152Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive ModelAnderson Chua Chen Lu0Jerome Kueh1Yong Sze Wei2Josephine Yau3 Audrey Liwan4Faculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, Sarawak, MalaysiaFaculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, Sarawak, MalaysiaFaculty of Business and Management, Universiti Teknologi MARA, Cawangan Sarawak, Sarawak, MalaysiaFaculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, Sarawak, MalaysiaFaculty of Economics and Business, Universiti Malaysia Sarawak, Kota Samarahan, Sarawak, Malaysia This paper aims to investigate the short and long term association between Foreign Direct Investment (FDI) and overall consumer affordability in Malaysia Real Estate Sector using Vector Autoregressive model. Sample period used is 2009:Q1 to 2017:Q4. FDI is scapegoated as the leading cause of decreasing affordability in real estate. In most cases, FDI on real estate contributes to the rising income of the country. Increasing income promotes demand to a higher threshold level. Thus, theoretically will cause housing price to increase. Through this study, evidence of no cointegration and absence of Granger causality converge towards deficiency of relationship among FDI and Housing Affordability Index (HAI). Findings pointed out FDI is not the cause of decreasing HAI. https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1211real esate, Vector Autoregressive, Granger Causality
spellingShingle Anderson Chua Chen Lu
Jerome Kueh
Yong Sze Wei
Josephine Yau
Audrey Liwan
Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model
Journal of International Business, Economics and Entrepreneurship
real esate, Vector Autoregressive, Granger Causality
title Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model
title_full Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model
title_fullStr Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model
title_full_unstemmed Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model
title_short Impact of Foreign Direct Investment (FDI) on Housing Affordability Index: Vector Autoregressive Model
title_sort impact of foreign direct investment fdi on housing affordability index vector autoregressive model
topic real esate, Vector Autoregressive, Granger Causality
url https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1211
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AT yongszewei impactofforeigndirectinvestmentfdionhousingaffordabilityindexvectorautoregressivemodel
AT josephineyau impactofforeigndirectinvestmentfdionhousingaffordabilityindexvectorautoregressivemodel
AT audreyliwan impactofforeigndirectinvestmentfdionhousingaffordabilityindexvectorautoregressivemodel