FDI and Economic Growth in Malaysia
AbstractAbstract: 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 14999.
Date of creation: 26 Mar 2009
Date of revision:
Foreign direct investment; Toda-Yamamoto test; bounds testing (ARDL); economic growth. Malaysia;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- O10 - Economic Development, Technological Change, and Growth - - Economic Development - - - General
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-05-09 (All new papers)
- NEP-CWA-2009-05-09 (Central & Western Asia)
- NEP-FDG-2009-05-09 (Financial Development & Growth)
- NEP-SEA-2009-05-09 (South East Asia)
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