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Foreign Labour on Malaysian Growth

Author

Listed:
  • Ismail, Rahmah

    (Universiti Kebangsaan Malaysia)

  • Yuliyusman, Ferayuliani

    (Universiti Kebangsaan Malaysia)

Abstract

This paper is to examine the impact of foreign labour on Malaysian economic growth using panel data from three sectors: manufacturing, services, and construction for the period of 1990~2010. The short run and long run effects of foreign labour on output growth are analysed using the Autoregressive Distributed Lag approach. The study shows that the skilled and semi-skilled foreign labours have a positive and significant impact on the output growth in both the short run and the long run. However, the study finds that the unskilled foreign labour adversely affects output growth in both the short run and the long run.

Suggested Citation

  • Ismail, Rahmah & Yuliyusman, Ferayuliani, 2014. "Foreign Labour on Malaysian Growth," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 29, pages 657-675.
    • Handle: RePEc:ris:integr:0645
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    Citations

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    Cited by:

    1. Daniel Rauhut & Birgit Aigner-Walder & Rahel M. Schomaker, 2023. "Economic Theory and Migration," Springer Books, in: The Economics of Immigration Beyond the Cities, chapter 0, pages 21-50, Springer.
    2. Crowley, Megan Zellers, 2020. "Foreign Labor Shortages in the Malaysian Palm Oil Industry: Impacts and Recommendations," Asian Journal of Agriculture and Development, Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), vol. 17(2), December.
    3. Agung Suwandaru & Thamer Alghamdi & Nurwanto Nurwanto, 2021. "Empirical Analysis on Public Expenditure for Education and Economic Growth: Evidence from Indonesia," Economies, MDPI, vol. 9(4), pages 1-13, October.
    4. Eric D. , Ramstetter, 2016. "Experiences with Foreign Workers in Singapore and Malaysia: What are the Lessons for Japan's Labor Markets?," AGI Working Paper Series 2016-06, Asian Growth Research Institute.
    5. Saffiah Mohd Nor & Zahariah Sahudin & Geetha Subramaniam, 2023. "The Effects of Health, Labor and Capital towards Labor Productivity in Manufacturing Industries," Information Management and Business Review, AMH International, vol. 15(1), pages 121-130.

    More about this item

    Keywords

    Skilled Foreign Labour; Semi-skilled Foreign Labour; Unskilled Foreign Labour; Economic Growth;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies

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