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FDI and manufacturing growth: Bound test and ARDL approach

The objective of this study is to investigate the effect of foreign direct investment (FDI) toward manufacturing value added growth in the context of developing economies like Pakistan. The study used annual data for the period 1972-2017. By applying the cointegration method known as "bounds...

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Main Authors: Rahman, Saif ur, Abu Bakar, Nor'Aznin
Format: Article
Language:English
Published: IJRSS 2019
Subjects:
HC Economic History and Conditions
Online Access:http://repo.uum.edu.my/28201/1/IJMRA%209%205%202019%20%2036%2061.pdf
http://repo.uum.edu.my/28201/
https://www.indianjournals.com/ijor.aspx?target=ijor:ijrss&volume=9&issue=5&article=003
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spelling my.uum.repo.282012021-02-18T02:25:18Z http://repo.uum.edu.my/28201/ FDI and manufacturing growth: Bound test and ARDL approach Rahman, Saif ur Abu Bakar, Nor'Aznin HC Economic History and Conditions The objective of this study is to investigate the effect of foreign direct investment (FDI) toward manufacturing value added growth in the context of developing economies like Pakistan. The study used annual data for the period 1972-2017. By applying the cointegration method known as "bounds test" and the autoregressive distributed lag (ARDL) approach to find both long term and short-term effect of FDI on manufacturing value added growth. Meanwhile the foreign direct investment and exports has also shown a significant impact on MAU in long run and short run. In addition, long run estimates show that foreign direct investment, employment and exports positively influence the Pakistan‟s manufacturing value added growth, while market size also significantly affect with negative sign of coefficient value and the employment insignificantly affect with positive sign. Our results suggest that Pakistan should consider appropriate positive policies regarding foreign direct investment, employment and exports to achieve high and stable manufacturing sector growth in the future. This paper contributes to the area of FDI and manufacturing sector growth by critically analyzing and synthesizing existing theory and research on FDI and manufacturing sector growth and with the help of advance technology and knowledge transfer IJRSS 2019 Article PeerReviewed application/pdf en http://repo.uum.edu.my/28201/1/IJMRA%209%205%202019%20%2036%2061.pdf Rahman, Saif ur and Abu Bakar, Nor'Aznin (2019) FDI and manufacturing growth: Bound test and ARDL approach. International Journal of Research in Social Sciences, 9 (5). pp. 36-61. ISSN 2249-2496 https://www.indianjournals.com/ijor.aspx?target=ijor:ijrss&volume=9&issue=5&article=003
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutional Repository
url_provider http://repo.uum.edu.my/
language English
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Rahman, Saif ur
Abu Bakar, Nor'Aznin
FDI and manufacturing growth: Bound test and ARDL approach
description The objective of this study is to investigate the effect of foreign direct investment (FDI) toward manufacturing value added growth in the context of developing economies like Pakistan. The study used annual data for the period 1972-2017. By applying the cointegration method known as "bounds test" and the autoregressive distributed lag (ARDL) approach to find both long term and short-term effect of FDI on manufacturing value added growth. Meanwhile the foreign direct investment and exports has also shown a significant impact on MAU in long run and short run. In addition, long run estimates show that foreign direct investment, employment and exports positively influence the Pakistan‟s manufacturing value added growth, while market size also significantly affect with negative sign of coefficient value and the employment insignificantly affect with positive sign. Our results suggest that Pakistan should consider appropriate positive policies regarding foreign direct investment, employment and exports to achieve high and stable manufacturing sector growth in the future. This paper contributes to the area of FDI and manufacturing sector growth by critically analyzing and synthesizing existing theory and research on FDI and manufacturing sector growth and with the help of advance technology and knowledge transfer
format Article
author Rahman, Saif ur
Abu Bakar, Nor'Aznin
author_facet Rahman, Saif ur
Abu Bakar, Nor'Aznin
author_sort Rahman, Saif ur
title FDI and manufacturing growth: Bound test and ARDL approach
title_short FDI and manufacturing growth: Bound test and ARDL approach
title_full FDI and manufacturing growth: Bound test and ARDL approach
title_fullStr FDI and manufacturing growth: Bound test and ARDL approach
title_full_unstemmed FDI and manufacturing growth: Bound test and ARDL approach
title_sort fdi and manufacturing growth: bound test and ardl approach
publisher IJRSS
publishDate 2019
url http://repo.uum.edu.my/28201/1/IJMRA%209%205%202019%20%2036%2061.pdf
http://repo.uum.edu.my/28201/
https://www.indianjournals.com/ijor.aspx?target=ijor:ijrss&volume=9&issue=5&article=003
_version_ 1692994207842566144
score 13.211869

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