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Fdi Oriented Exports And Role Of Free Industrial Zones In Malaysia

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  • Associate Professor Dr. Sallahuddin HASSAN

    (School of Economics, Finance and Banking, Universiti Utara Malaysia)

Abstract

FDI is crucial in the process of development, and offers wide scope for backward linkages to the broader economy. In expectance of such role and benefits, governments all over the world have engaged in various kinds of productive policy measures including Export Processing Zones (EPZs) or Free Industrial Zones (FIZs). However, the costs of races to the bottom to integrate and accommodate foreign entrepreneurs and potential investors may outweigh the benefits. This study used a vector autoregressive(VAR) model to empirically investigate finds that without a broader supportive policy environmental thrust; such a policy may lead to enclave development rather than provide a foundation for broad-based economic development. Hence countries need to develop strategies that attract firms that seek competitiveness on the basis of factors beyond low costs and tax breaks.

Suggested Citation

  • Associate Professor Dr. Sallahuddin HASSAN, 2018. "Fdi Oriented Exports And Role Of Free Industrial Zones In Malaysia," International Journal of Economic Performance (IJEP), ALPEC The performance of Algerian economic institutions in light of international economic mobility , Boumerdes University, vol. 1(01), pages :129-148, June.
    • Handle: RePEc:bjm:ijep00:v:1:y:2018:i:01:id:3
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    References listed on IDEAS

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