where LOFDI signifies logarithm of FDI outflow of Singapore, LRGDP denotes
logarithm of real income of Singapore, LTO represents logarithm of trade openness of
Singapore, LINT denotes interest rate, LEXC denotes nominal exchange rate,
are coefficients to be estimated and e represent error term.
The vector error-correction model (VECM) is adopted with the purpose to examine
the long run deviation from the equilibrium association between endogenous variable,
FDI outflow of Singapore and the determinants. The model is as shown in Equation
(2).