An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda

The primary objective of this study is to examine the influence of real wages in Malaysia’s manufacturing sector on the inflows of foreign direct investment in Malaysia, in terms of direction and the extent to which the former affects the latter. Secondly, the research intends to identify the effect...

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Main Authors: Hanif, Azlina, Ahmad, Zuriyati, Muda, Ruhaini
Format: Research Reports
Language:English
Published: 2005
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/67815/1/67815.pdf
https://ir.uitm.edu.my/id/eprint/67815/
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spelling my.uitm.ir.678152022-10-03T07:02:51Z https://ir.uitm.edu.my/id/eprint/67815/ An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda Hanif, Azlina Ahmad, Zuriyati Muda, Ruhaini HC Economic History and Conditions Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product HG Finance Investment, capital formation, speculation Foreign investments. Country risk HJ Public Finance Revenue. Taxation. Internal revenue The primary objective of this study is to examine the influence of real wages in Malaysia’s manufacturing sector on the inflows of foreign direct investment in Malaysia, in terms of direction and the extent to which the former affects the latter. Secondly, the research intends to identify the effect of FDI inflows on the real wages, in terms of the magnitude and direction of change. We hope to empirically confirm the conventional perception that FDI can subsequently raise the real wages of labor in a host country, given the little consensus as to whether FDI inflows bring improvements, skills upgrading, and wages in the host country’s manufacturing sector. The simultaneous equation model is used to investigate the two-way causal relationship between FDI and Real Wages, as an alternative method to Granger Causality Test. The technique of Two Stage Least Square is then employed in the regression. The findings suggest that real wage exerts a positive and significant effect on FDI and the reverse causation also holds true in similar trend. 2005 Research Reports NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/67815/1/67815.pdf An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda. (2005) [Research Reports] (Submitted)
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic HC Economic History and Conditions
Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
HG Finance
Investment, capital formation, speculation
Foreign investments. Country risk
HJ Public Finance
Revenue. Taxation. Internal revenue
spellingShingle HC Economic History and Conditions
Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
HG Finance
Investment, capital formation, speculation
Foreign investments. Country risk
HJ Public Finance
Revenue. Taxation. Internal revenue
Hanif, Azlina
Ahmad, Zuriyati
Muda, Ruhaini
An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda
description The primary objective of this study is to examine the influence of real wages in Malaysia’s manufacturing sector on the inflows of foreign direct investment in Malaysia, in terms of direction and the extent to which the former affects the latter. Secondly, the research intends to identify the effect of FDI inflows on the real wages, in terms of the magnitude and direction of change. We hope to empirically confirm the conventional perception that FDI can subsequently raise the real wages of labor in a host country, given the little consensus as to whether FDI inflows bring improvements, skills upgrading, and wages in the host country’s manufacturing sector. The simultaneous equation model is used to investigate the two-way causal relationship between FDI and Real Wages, as an alternative method to Granger Causality Test. The technique of Two Stage Least Square is then employed in the regression. The findings suggest that real wage exerts a positive and significant effect on FDI and the reverse causation also holds true in similar trend.
format Research Reports
author Hanif, Azlina
Ahmad, Zuriyati
Muda, Ruhaini
author_facet Hanif, Azlina
Ahmad, Zuriyati
Muda, Ruhaini
author_sort Hanif, Azlina
title An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda
title_short An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda
title_full An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda
title_fullStr An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda
title_full_unstemmed An assessment of the relationship between Malaysia’s foreign direct investment and real wages in manufacturing sector / Azlina Hanif, Zuriyati Ahmad and Ruhaini Muda
title_sort assessment of the relationship between malaysia’s foreign direct investment and real wages in manufacturing sector / azlina hanif, zuriyati ahmad and ruhaini muda
publishDate 2005
url https://ir.uitm.edu.my/id/eprint/67815/1/67815.pdf
https://ir.uitm.edu.my/id/eprint/67815/
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