Authors : NuhaKasem Damag, Behrooz Gharleghi, Behrang Samadi and Benjamin Chan Yin Fah
Abstract: This study aims to identify the economic determinants of the international bank’s decision to expand into Malaysia. This objective is examined via regression analysis through the effect of exchange rate, growth rate, inflation rate and foreign direct investment, towards the number of international banks in Malaysia. The secondary quarterly time series data is collected from the International Monetary Fund spanning from 2000-Q1 to 2013-Q4. The empirical findings show that exchange rate and foreign direct investment have a significant negative effect, towards the number of international banks in Malaysia. In the other hand, growth and inflation rate have a positive but not significant effect, toward the number of banks in Malaysia. Therefore, more consideration should be given to the stability of exchange rate and sustain ability of foreign direct investment in Malaysia.
NuhaKasem Damag, Behrooz Gharleghi, Behrang Samadi and Benjamin Chan Yin Fah, 2015. International Bank’s Decision to Expand into Malaysia, the Economic Determinants. International Business Management, 9: 476-482.