Citation

Ahmed, Elsadig Musa (2012) Are the FDI inflow spillover effects on Malaysia's economic growth input driven? Economic Modelling, 29 (4). pp. 1498-1504. ISSN 0264-9993

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Abstract

This paper inspects the influence of human capital, labour force, and absorptive capacity, physical capital as a control variable, foreign direct investment (FDI) inflows and gross domestic product (GDP) on Malaysia's productivity growth. A time series quarterly data from the period of 1999 to 2008 was used. The effects of FDI inflows on human capital, labour force, absorptive capacity and physical capital were investigated. The Ordinary Least Squares (OLS) regression was applied to estimate the data in the first step and in the second step productivity indicators were calculated. The results show that the FDI inflows and inputs used are negatively contributed to total factor productivity (TFP). Meanwhile, FDI plays a significant role in achieving economic growth through input driven as indicated by the contribution of the TFP. In this regard, a significant positive relationship between human capital, labour force and absorptive capacity which determines the spillover effect on Malaysian economic growth (GDP) was found and the physical capital has shown negative relationship.

Item Type:	Article
Subjects:	H Social Sciences > HB Economic theory. Demography
Divisions:	Faculty of Business and Law (FBL)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	28 Dec 2012 07:38
Last Modified:	05 Sep 2014 02:54
URII:	http://shdl.mmu.edu.my/id/eprint/3543

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