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Outward FDI and home country economic growth: a Malaysian case

  • Koi Nyen Wong

This paper attempts to explore the causality relationship between outward foreign direct investment (OFDI) and home country economic growth using Malaysia as a case. The main findings do not advocate the OFDI-led growth hypothesis. In order to promote OFDI-led growth, the home government should prepare the private sector for increasing competition in the era of globalization so that linkages can be forged with Malaysian multinationals, and to facilitate home sourcing for OFDI activities. However, the study reveals the evidence of growth-led OFDI, which conforms to the investment development path theory that can potentially internationalize business activities of Malaysian firms abroad.

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File URL: http://www.buseco.monash.edu.au/eco/research/papers/2010/5610outwardwong.pdf
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Paper provided by Monash University, Department of Economics in its series Monash Economics Working Papers with number 56-10.

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Length: 11 pages
Date of creation: May 2010
Date of revision:
Handle: RePEc:mos:moswps:2010-56
Contact details of provider: Postal: Department of Economics, Monash University, Victoria 3800, Australia
Phone: +61-3-9905-2493
Fax: +61-3-9905-5476
Web page: http://www.buseco.monash.edu.au/eco/Email:


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  1. Luiz de Mello, 1997. "Foreign direct investment in developing countries and growth: A selective survey," Journal of Development Studies, Taylor & Francis Journals, vol. 34(1), pages 1-34.
  2. L.R. de Mello Jr., 1996. "Foreign Direct Investment-Led Growth: Evidence from Time Series and Panel Data," Studies in Economics 9615, School of Economics, University of Kent.
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