Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening
This paper explores the role of foreign direct investment (FDI) in economic growth in Malaysia, appropriately controlling for other proximate drivers of economic growth: domestic investment, exports, financial markets, and human capital. Domestic capital formation, FDI, human capital, and financial...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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M.E. Sharpe
2009
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| Online Access: | http://psasir.upm.edu.my/id/eprint/14801/1/Foreign%20direct%20investment%20and%20economic%20growth%20in%20Malaysia.pdf |
| _version_ | 1796968718172946432 |
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| author | Baharumshah, Ahmad Zubaidi Almasaied, Suleiman W. |
| author_facet | Baharumshah, Ahmad Zubaidi Almasaied, Suleiman W. |
| author_sort | Baharumshah, Ahmad Zubaidi |
| collection | UPM |
| description | This paper explores the role of foreign direct investment (FDI) in economic growth in Malaysia, appropriately controlling for other proximate drivers of economic growth: domestic investment, exports, financial markets, and human capital. Domestic capital formation, FDI, human capital, and financial deepening significantly affect economic growth. FDI has a positive and significant effect on economic growth, but its effect is of lesser magnitude than that of domestic investment. Human capital and financial markets interact with FDI and, thus, are important for both short- and long-term growth processes. The results suggest that it is important to encourage domestic as well as foreign investment to put Malaysia back on its precrisis growth path. |
| first_indexed | 2024-03-06T07:32:27Z |
| format | Article |
| id | upm.eprints-14801 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T07:32:27Z |
| publishDate | 2009 |
| publisher | M.E. Sharpe |
| record_format | dspace |
| spelling | upm.eprints-148012016-02-12T08:38:39Z http://psasir.upm.edu.my/id/eprint/14801/ Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening Baharumshah, Ahmad Zubaidi Almasaied, Suleiman W. This paper explores the role of foreign direct investment (FDI) in economic growth in Malaysia, appropriately controlling for other proximate drivers of economic growth: domestic investment, exports, financial markets, and human capital. Domestic capital formation, FDI, human capital, and financial deepening significantly affect economic growth. FDI has a positive and significant effect on economic growth, but its effect is of lesser magnitude than that of domestic investment. Human capital and financial markets interact with FDI and, thus, are important for both short- and long-term growth processes. The results suggest that it is important to encourage domestic as well as foreign investment to put Malaysia back on its precrisis growth path. M.E. Sharpe 2009-01 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/14801/1/Foreign%20direct%20investment%20and%20economic%20growth%20in%20Malaysia.pdf Baharumshah, Ahmad Zubaidi and Almasaied, Suleiman W. (2009) Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening. Emerging Markets Finance and Trade, 45 (1). pp. 90-102. ISSN 1540-496X; ESSN: 1558-0938 http://www.tandfonline.com/doi/abs/10.2753/REE1540-496X450106 10.2753/REE1540-496X450106 |
| spellingShingle | Baharumshah, Ahmad Zubaidi Almasaied, Suleiman W. Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening |
| title | Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening |
| title_full | Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening |
| title_fullStr | Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening |
| title_full_unstemmed | Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening |
| title_short | Foreign direct investment and economic growth in Malaysia: interactions with human capital and financial deepening |
| title_sort | foreign direct investment and economic growth in malaysia interactions with human capital and financial deepening |
| url | http://psasir.upm.edu.my/id/eprint/14801/1/Foreign%20direct%20investment%20and%20economic%20growth%20in%20Malaysia.pdf |
| work_keys_str_mv | AT baharumshahahmadzubaidi foreigndirectinvestmentandeconomicgrowthinmalaysiainteractionswithhumancapitalandfinancialdeepening AT almasaiedsuleimanw foreigndirectinvestmentandeconomicgrowthinmalaysiainteractionswithhumancapitalandfinancialdeepening |