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Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?

Foreign direct investment (FDI) is often viewed as a potential contributor to a country’s economic growth and development. However, the extent of the contribution may depend upon the source of such investment inflows. This paper assesses the contribution of inward FDI to Malaysia’s economic growth u...

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Main Authors: Tang, Chor Foon, Tan, Eu Chye
Format: Article
Published: Taylor & Francis 2018
Subjects:
HC Economic History and Conditions
Online Access:http://eprints.um.edu.my/20517/
https://doi.org/10.1080/1226508X.2017.1406815
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spelling my.um.eprints.205172019-02-27T02:14:01Z http://eprints.um.edu.my/20517/ Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia? Tang, Chor Foon Tan, Eu Chye HC Economic History and Conditions Foreign direct investment (FDI) is often viewed as a potential contributor to a country’s economic growth and development. However, the extent of the contribution may depend upon the source of such investment inflows. This paper assesses the contribution of inward FDI to Malaysia’s economic growth using investment data disaggregated by source over the period, 2008:Q1–2016:Q3. Due to the mixed orders of integration of the series involved, the autoregressive distributed lag (ARDL) framework is employed to conduct the assessment. The econometric results indicate that the source of the FDI does matter greatly when considering the extent of its spin-off for the local economy. Specifically, FDI flows from North America and Southeast Asia contribute more significantly to Malaysia’s economic growth than FDI flows from Central and South America, Northeast Asia and Oceania. Taylor & Francis 2018 Article PeerReviewed Tang, Chor Foon and Tan, Eu Chye (2018) Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia? Global Economic Review, 47 (2). pp. 174-181. ISSN 1226-508X https://doi.org/10.1080/1226508X.2017.1406815 doi:10.1080/1226508X.2017.1406815
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Tang, Chor Foon
Tan, Eu Chye
Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?
description Foreign direct investment (FDI) is often viewed as a potential contributor to a country’s economic growth and development. However, the extent of the contribution may depend upon the source of such investment inflows. This paper assesses the contribution of inward FDI to Malaysia’s economic growth using investment data disaggregated by source over the period, 2008:Q1–2016:Q3. Due to the mixed orders of integration of the series involved, the autoregressive distributed lag (ARDL) framework is employed to conduct the assessment. The econometric results indicate that the source of the FDI does matter greatly when considering the extent of its spin-off for the local economy. Specifically, FDI flows from North America and Southeast Asia contribute more significantly to Malaysia’s economic growth than FDI flows from Central and South America, Northeast Asia and Oceania.
format Article
author Tang, Chor Foon
Tan, Eu Chye
author_facet Tang, Chor Foon
Tan, Eu Chye
author_sort Tang, Chor Foon
title Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?
title_short Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?
title_full Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?
title_fullStr Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?
title_full_unstemmed Does the Source of Foreign Direct Investment Matter to Economic Growth in Malaysia?
title_sort does the source of foreign direct investment matter to economic growth in malaysia?
publisher Taylor & Francis
publishDate 2018
url http://eprints.um.edu.my/20517/
https://doi.org/10.1080/1226508X.2017.1406815
_version_ 1643691302440665088
score 13.211869

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