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FDI and Economic Growth in Malaysia

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  • Karimi, Mohammad Sharif
  • Yusop, Zulkornain

Abstract

Abstract: This study examines the causal relationship between foreign direct investment and economic growth. Methodology is based on the Toda-Yamamoto test for causality relationship and the bounds testing (ARDL). Time-series data covering the period 1970-2005 for Malaysia, the study found, in the case of Malaysia there is no strong evidence of a bi-directional causality and long-run relationship between FDI and economic growth. This suggests that FDI has indirect effect on economic growth in Malaysia

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 14999.

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Date of creation: 26 Mar 2009
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Handle: RePEc:pra:mprapa:14999

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Keywords: Foreign direct investment; Toda-Yamamoto test; bounds testing (ARDL); economic growth. Malaysia;

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Citations

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Cited by:
  1. Aviral Kumar Tiwari & Mihai Mutascu, 2011. "Economic Growth and FDI in Asia: A Panel-Data Approach," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, Queensland University of Technology (QUT), School of Economics and Finance, vol. 41(2), pages 173-187, September.
  2. Tiwari, Aviral & Mutascu, Mihai, 2010. "Economic growth and and FDI in ASIA: A panel data approach," MPRA Paper 28172, University Library of Munich, Germany.
  3. Syed Imran Ali Meerza, 2012. "Causal links between trade, foreign direct investment and economic growth for Bangladesh," SDSU Working Papers in Progress, South Dakota State University, Department of Economics 12012, South Dakota State University, Department of Economics.
  4. Turkhan Ali Abdul Manap & Gairuzazmi M Ghani, 2012. "Malaysia's Time Varying Capital Mobility," Economics Bulletin, AccessEcon, vol. 32(2), pages 1361-1368.
  5. Gulam Hassan, Mohamed Aslam & Abou Sakar, Sameer, 2013. "Foreign Direct Investment, Human Capital and Economic Growth in Malaysia," MPRA Paper 51930, University Library of Munich, Germany.

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