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Do public investment and FDI crowd in or crowd out private domestic investment in Malaysia?

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Author Info
James Ang

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Abstract

Motivated by the concern of a persistent decline in total investment in Malaysia during the post-crisis era, this article examines the long-run relationship between private domestic investment (PDI), public investment and foreign direct investment (FDI) in Malaysia. Using multivariate cointegration techniques, the results indicate a fairly robust cointegrated relationship between these variables during the period 1960 to 2003. Both public investment and FDI are found to be complementary to, rather than competing with, PDI.

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File URL: http://www.informaworld.com/openurl?genre=article&doi=10.1080/00036840701721448&magic=repec&7C&7C8674ECAB8BB840C6AD35DC6213A474B5
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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 41 (2009)
Issue (Month): 7 ()
Pages: 913-919
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Handle: RePEc:taf:applec:v:41:y:2009:i:7:p:913-919

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