Time Series Analysis and Forecasting Techniques for Foreign Direct Investment

  • Ummi Rohaizad Abdul Rahim School of Quantitative Sciences, University Utara Malaysia (UUM)
  • Zahayu Md Yusof School of Quantitative Sciences, University Utara Malaysia (UUM)
Keywords: foreign direct investment, time series analysis, forecasting


Foreign direct investment are the net inflows of investment to acquire a lasting management interest which is 10 percent or more of voting stock in an enterprise operating in an economy other than the investor. It is the sum of equity capital, reinvestment of earnings, other long-term capital, and short-term capital as shown in the balance of payments. This paper will discuss the definitions and findings of previous studies regarding Foreign Direct Investment. This paper also will explain about forecasting techniques used in previous studies in forecasting Foreign Direct Investment. Time Series Analysis is used to determine a good model that can be used to forecast business metrics.

Abstract views: 30 , PDF downloads: 19


Download data is not yet available.


Alam, A. &. Shah, S.Z.A. (2013). Determinants of foreign direct investment in OECD member countries, Journal of Economic Studies, 40(4), 515 – 527.

Antonakakis, N. & Tondl, G. (2012). Do determinants of FDI to developing countries differ among OECD countries? Insights from a Bayesian Panel Data Approach. Vienna University of Economics and Business Draft working paper. pp 42.

Asiedu, E. (2006). Foreign Direct Investment in Africa: The Role of Natural Resources, Market Size, Government Policy, Institutions and Political Instability. The World Economy, 29(1), 63-77.

Biswas, A. (2015). Forecasting Net Foreign Direct Investment Inflows in India: Box-Jenkins ARIMA Model. International Journal of Management and Business Studies, 4(3), 49-58.

Denisia, V. (2010). Foreign Direct Investment Theories: Overview of the Main FDI Theories. European Journal of Interdisciplinary Studies, 2(2), 89-114.

Jere, S., Kasense, B., & Chilyabanyama, O. (2017). Forecasting Foreign Direct Investment to Zambia: A Time Seris Analysis. Open Journal of Statistics, 7(1).

Jones, R. (1980). Maximum Likelihood Fitting of ARMA Models to Time Series with Missing Observations. Technometrics, 22(3), 389-395. doi:10.2307/1268324

Kandiero, T. & Chitiga, M. (2014). Trade openness and foreign direct investment in Africa. South African Journal of Economic and Management Sciences, 9(3), 355.

Kalam, Khaled. (2018). Foreign Direct Investment Determinants in Malaysia. British Journal of Business Design & Education, 11(1).

Kumar, G. & Dhingra, N. (2012). Growth performance and forecasts of FDI inflows to Sri Lanka. E3 Journal of Business Management and Economics, 3(8), 307-317.

Lazim, M.A. (2020). Introductory business forecasting: A practical approach (3rd ed.). UiTM Press.

Mohamed S. and Sidiropoulos, M. (2010). Another look at the determinants of foreign direct investment in MENA countries: An empirical investigation. Journal of Economic Development, 35(2), 75-95.

Perera, P. (2015). Modeling and Forecasting Foreign Direct Investment (FDI) into SAARC for the period of 2013-2037 with ARIMA. International Journal of Business and Social Science, 6(2), 264-272.

Teoh, S. (2021, February 4). Foreign Direct Investment into Malaysia Plunge, experts citegrowing Political Risk. Retrieved from https://www.straitstimes.com/asia/se-asia/foreign-direct-investments-into-malaysia-plunge-experts-cite-growing-political-risk

Vijayakumar, N., Sridharan, P. and Rao, K. (2010). Determinants of FDI in BRICS countries: A panel analysis. International Journal of Business Science and Applied Management, 5(3), 1- 13.
How to Cite
Abdul Rahim, U. R. and Md Yusof, Z. (2021) “Time Series Analysis and Forecasting Techniques for Foreign Direct Investment”, Malaysian Journal of Social Sciences and Humanities (MJSSH), 6(9), pp. 391 - 397. doi: https://doi.org/10.47405/mjssh.v6i9.1011.