Foreign Direct Investment and Economic Growth: Cointegration Techniques
AbstractForeign Direct Investment (FDI) has been considered as one of the major factors underlying the economic growth experienced by many developing countries. In Malaysia, FDI has played an important role not only in stimulating economic growth, but has also contributed significantly to the growth of the industrial sector and the transformation of the Malaysian economic structure from agricultural to a major producer and exporter of manufactured goods. However, the race for FDI has become increasingly competitive, especially in view of the emergence of China as a new destination for FDI. This paper examines the influence of FDI on the growth of Malaysia for the period 1970-2003. It is found that FDI has significant influence on the growth rate of the Malaysian economy. In addition, multiple regression analyses are performed to determine the relationship between the specific determinants and FDI inflow to the country. The results of the FDI determinants model, firstly, reveal the existence of a long-run relationship between FDI and the variables involved; and secondly, that GDP, exchange rate, public development expenditure, openness of the economy and labor cost have a direct impact on FDI.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by IUP Publications in its journal The IUP Journal of Managerial Economics.
Volume (Year): VII (2009)
Issue (Month): 3-4 (August-November)
Contact details of provider:
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murthy).
If references are entirely missing, you can add them using this form.