Foreign direct investment and economic growth in Malaysia: the role of financial development

Citation

Ismail, Nik Zirwatul Fatihah and Wan Ngah, Wan Azman Saini (2012) Foreign direct investment and economic growth in Malaysia: the role of financial development. In: National Research & Innovation Conference for Graduate Students in Social Sciences (GS-NRIC 2012), 7-9 Dec. 2012, Mahkota Hotel, Melaka. (pp. 445-458).

Abstract

This study investigates the effectiveness of financial development in mediating the impact of foreign direct investment (FDI) on economic growth in Malaysia during the period of 1975 to 2009. The empirical results, based on the autoregressive distributed lag (ARDL) method shows that there is a long run relationship between FDI, investment of GDP, total labor, human capital, financial development and interaction term (FDI and financial development) with GDP growth. Besides, the entire variable has direct impact on economic growth except total labor and human capital which is has no direct impact on economic growth. Furthermore, the result shows that the important role played by financial development in mediating the FDI-effect occur both in the short and long run.

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Additional Metadata

Item Type:	Conference or Workshop Item (Paper)
Divisions:	Faculty of Economics and Management
Publisher:	Faculty of Economics and Management, Universiti Putra Malaysia
Keywords:	Foreign direct investment; Economic growth; Financial development
Depositing User:	Nabilah Mustapa
Date Deposited:	03 Apr 2017 07:44
Last Modified:	03 Apr 2017 07:44
URI:	http://psasir.upm.edu.my/id/eprint/51277
Statistic Details:	View Download Statistic

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