Fdi´S Country Of Origin And Output Growth: The Case Of Malaysia?S Manufacturing Sector, 1991-2006
Numerous studies ranging from firm- to macro-level have been done on the impact of FDI on the host countries. However, to our knowledge, there are very few attempts to investigate whether the origin of FDI exerts different spillover effects on host countries. Hence, the objective of this paper is to analyze the impact of FDI inflows from countries in European Union, ASEAN, Japan, China, and the United States on growth of the manufacturing sector in Malaysia for period 1991 to 2006 using the Autoregressive Distributed Lag (ARDL) model proposed by Pesaran et al (2001). The results show that there exists both short- and long-run relationship between FDI inflows from European Union countries, ASEAN-4 countries, and the United States with the growth in Malaysia?s manufacturing sector. The long-run elasticity shows that FDI inflows from China, US, and the European Union countries have a positive impact on growth in the manufacturing sector. However, FDI inflows from Japan and ASEAN-4 countries are negatively related to the growth of manufacturing sector?s output. The results suggest that FDI inflows from developed countries to the R&D intensive sectors create positive impact on the growth of Malaysia?s manufacturing sector possibly through transfer of technology.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 11 (2011)
Issue (Month): 1 ()
|Contact details of provider:|| Web page: http://www.usc.es/economet/eaa.htm|
|Order Information:|| Web: http://www.usc.es/economet/info.htm Email: |
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David L. Carr & James R. Markusen & Keith E. Maskus, 1998. "Estimating the Knowledge-Capital Model of the Multinational Enterprise," NBER Working Papers 6773, National Bureau of Economic Research, Inc.
- Andreas Waldkirch, 2010.
"The Effects of Foreign Direct Investment in Mexico since NAFTA,"
The World Economy,
Wiley Blackwell, vol. 33(5), pages 710-745, 05.
- Waldkirch, Andreas, 2008. "The Effects of Foreign Direct Investment in Mexico since NAFTA," MPRA Paper 7975, University Library of Munich, Germany.
- M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
- Nunnenkamp, Peter & Spatz, Julius, 2003. "Foreign direct investment and economic growth in developing countries: how relevant are host-country and industry characteristics?," Kiel Working Papers 1176, Kiel Institute for the World Economy (IfW).
- Bengoa, Marta & Sanchez-Robles, Blanca, 2003. "Foreign direct investment, economic freedom and growth: new evidence from Latin America," European Journal of Political Economy, Elsevier, vol. 19(3), pages 529-545, September.
- Thomas L Brewer, 1993. "Government Policies, Market Imperfections, and Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(1), pages 101-120, March.
- Eiichi Tomiura, 2005. "Technological Capability and FDI in Asia: Firm-level Relationships among Japanese Manufacturers ," Asian Economic Journal, East Asian Economic Association, vol. 19(3), pages 273-289, 09.
- Nigel Driffield & Max Munday, 1998. "The impact of foreign direct investment on UK manufacturing: is there a profit squeeze in domestic firms?," Applied Economics, Taylor & Francis Journals, vol. 30(5), pages 705-709.
- Frederick W Schroath & Michael Y Hu & Haiyang Chen, 1993. "Country-of-origin Effects of Foreign Investments in the People's Republic of China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(2), pages 277-290, June.
- Elissa Braunstein & Gerald Epstein, 2002. "Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?," SCEPA working paper series. SCEPA's main areas of research are macroeconomic policy, inequality and poverty, and globalization. 2002-13, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
- Gerald Epstein & Elissa Braunstein, 2002. "Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?," Working Papers wp45, Political Economy Research Institute, University of Massachusetts at Amherst.
- Rashmi Banga, 2006. "The export-diversifying impact of Japanese and US foreign direct investments in the Indian manufacturing sector," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 37(4), pages 558-568, July.
- Buckley, Peter J & Casson, Mark, 1981. "The Optimal Timing of a Foreign Direct Investment," Economic Journal, Royal Economic Society, vol. 91(361), pages 75-87, March.
- Inder, Brett, 1993. "Estimating long-run relationships in economics : A comparison of different approaches," Journal of Econometrics, Elsevier, vol. 57(1-3), pages 53-68.
- Mah, Jai S., 2000. "An empirical examination of the disaggregated import demand of Korea--the case of information technology products," Journal of Asian Economics, Elsevier, vol. 11(2), pages 237-244.
- John Dunning, 1981. "Explaining the international direct investment position of countries: Towards a dynamic or developmental approach," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(1), pages 30-64, March.
- Wilbur Chung, 2001. "Identifying Technology Transfer in Foreign Direct Investment: Influence of Industry Conditions and Investing Firm Motives," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(2), pages 211-229, June.
- Joze Mencinger, 2003. "Does Foreign Direct Investment Always Enhance Economic Growth?," Kyklos, Wiley Blackwell, vol. 56(4), pages 491-508, November.
- Shiva S. Makki & Agapi Somwaru, 2004. "Impact of Foreign Direct Investment and Trade on Economic Growth: Evidence from Developing Countries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(3), pages 795-801. Full references (including those not matched with items on IDEAS)