IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Foreign Direct Investment and Economic Growth: Cointegration Techniques

Listed author(s):
  • Idris Jajri
Registered author(s):

    Foreign Direct Investment (FDI) has been considered as one of the major factors underlying the economic growth experienced by many developing countries. In Malaysia, FDI has played an important role not only in stimulating economic growth, but has also contributed significantly to the growth of the industrial sector and the transformation of the Malaysian economic structure from agricultural to a major producer and exporter of manufactured goods. However, the race for FDI has become increasingly competitive, especially in view of the emergence of China as a new destination for FDI. This paper examines the influence of FDI on the growth of Malaysia for the period 1970-2003. It is found that FDI has significant influence on the growth rate of the Malaysian economy. In addition, multiple regression analyses are performed to determine the relationship between the specific determinants and FDI inflow to the country. The results of the FDI determinants model, firstly, reveal the existence of a long-run relationship between FDI and the variables involved; and secondly, that GDP, exchange rate, public development expenditure, openness of the economy and labor cost have a direct impact on FDI.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by IUP Publications in its journal The IUP Journal of Managerial Economics.

    Volume (Year): VII (2009)
    Issue (Month): 3-4 (August-November)
    Pages: 7-18

    in new window

    Handle: RePEc:icf:icfjme:v:07:y:2009:i:3-4:p:7-18
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:icf:icfjme:v:07:y:2009:i:3-4:p:7-18. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.