Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris

FDI is perceived to have accelerated economic growth through the financing of domestic investment of developing countries that lack of domestic saving. Malaysia is not left out to rely on FDI to finance domestic investment during the savinginvestment gap recorded the negative values in the 80’s and...

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Main Authors: Salim, Nor Jana, Mustaffa, Rajmi, Idris, Asma’ Rashidah
Format: Research Reports
Language:English
Published: Research Management Institute (RMI) 2012
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/20892/1/LP_NOR%20JANA%20SALIM%20RMI%2012_5.pdf
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author Salim, Nor Jana
Mustaffa, Rajmi
Idris, Asma’ Rashidah
author_facet Salim, Nor Jana
Mustaffa, Rajmi
Idris, Asma’ Rashidah
author_sort Salim, Nor Jana
collection UITM
description FDI is perceived to have accelerated economic growth through the financing of domestic investment of developing countries that lack of domestic saving. Malaysia is not left out to rely on FDI to finance domestic investment during the savinginvestment gap recorded the negative values in the 80’s and 90’s. This study aims to re-examine the relationship between FDI and GDP when saving-investment gap has recorded the surplus in the late 90’s. Covering the period from 2000-2010 this study employs Autoregressive Distributed Lag (ARDL) model for integration, the results show all the variables used in the study are co-integrated in the long run. Furthermore, the granger causality test shows a unidirectional causality from FDI to GDP. This can be the evidence that Malaysia still relies on FDI to boost economic growth even though there is a surplus in saving – investment gap.
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spelling uitm.eprints-08922021-09-08T01:22:12Z https://ir.uitm.edu.my/id/eprint/20892/ Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris Salim, Nor Jana Mustaffa, Rajmi Idris, Asma’ Rashidah Economic development. Development economics. Economic growth Investment, capital formation, speculation FDI is perceived to have accelerated economic growth through the financing of domestic investment of developing countries that lack of domestic saving. Malaysia is not left out to rely on FDI to finance domestic investment during the savinginvestment gap recorded the negative values in the 80’s and 90’s. This study aims to re-examine the relationship between FDI and GDP when saving-investment gap has recorded the surplus in the late 90’s. Covering the period from 2000-2010 this study employs Autoregressive Distributed Lag (ARDL) model for integration, the results show all the variables used in the study are co-integrated in the long run. Furthermore, the granger causality test shows a unidirectional causality from FDI to GDP. This can be the evidence that Malaysia still relies on FDI to boost economic growth even though there is a surplus in saving – investment gap. Research Management Institute (RMI) 2012 Research Reports NonPeerReviewed text en https://ir.uitm.edu.my/id/eprint/20892/1/LP_NOR%20JANA%20SALIM%20RMI%2012_5.pdf Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris. (2012) [Research Reports] <http://terminalib.uitm.edu.my/20892.pdf> (Unpublished)
spellingShingle Economic development. Development economics. Economic growth
Investment, capital formation, speculation
Salim, Nor Jana
Mustaffa, Rajmi
Idris, Asma’ Rashidah
Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris
title Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris
title_full Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris
title_fullStr Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris
title_full_unstemmed Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris
title_short Econometric analysis : re-examining FDI and growth lingkages in Malaysia / Nor Jana Salim, Rajmi Mustaffa and Asma’ Rashidah Idris
title_sort econometric analysis re examining fdi and growth lingkages in malaysia nor jana salim rajmi mustaffa and asma rashidah idris
topic Economic development. Development economics. Economic growth
Investment, capital formation, speculation
url https://ir.uitm.edu.my/id/eprint/20892/1/LP_NOR%20JANA%20SALIM%20RMI%2012_5.pdf
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