Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia

Given appropriate host country policies and a basic level of development, a preponderance of studies show that foreign direct investment provides numerous benefits as well as costs to the host country. As the empirical evidence remains inconclusive, this paper is an attempt to contribute further to...

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Main Author: Ling, Renee Mei Yen
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2003
Online Access:https://eprints.nottingham.ac.uk/24219/
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author Ling, Renee Mei Yen
author_facet Ling, Renee Mei Yen
author_sort Ling, Renee Mei Yen
building Nottingham Research Data Repository
collection Online Access
description Given appropriate host country policies and a basic level of development, a preponderance of studies show that foreign direct investment provides numerous benefits as well as costs to the host country. As the empirical evidence remains inconclusive, this paper is an attempt to contribute further to this debate by focussing on six non-resource and resource based industries in the Malaysian manufacturing sector from 1980 to 2001. By adopting the coefficient of correlation as the central statistical technique, empirical results infer only strong evidence that FDI builds the capabilities of the host country in two non-resource based industries namely the Electronics and Electrical products and Textiles and Textiles products industries. Lack of technology acquisition capabilities, shortage of specialised and skilled labour and deficiencies in supporting industries represent the main reasons behind the weak correlation observed for the Machinery Manufacturing, Chemical and Chemical products, Wood and Wood products and Rubber products industries. The results reflect the narrow-based positive' effects of FDI in the Malaysian manufacturing sector and also explicate the Government's recent amendments to its investment incentives towards the promotion of the four latter industries.
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spelling nottingham-242192018-01-30T21:36:03Z https://eprints.nottingham.ac.uk/24219/ Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia Ling, Renee Mei Yen Given appropriate host country policies and a basic level of development, a preponderance of studies show that foreign direct investment provides numerous benefits as well as costs to the host country. As the empirical evidence remains inconclusive, this paper is an attempt to contribute further to this debate by focussing on six non-resource and resource based industries in the Malaysian manufacturing sector from 1980 to 2001. By adopting the coefficient of correlation as the central statistical technique, empirical results infer only strong evidence that FDI builds the capabilities of the host country in two non-resource based industries namely the Electronics and Electrical products and Textiles and Textiles products industries. Lack of technology acquisition capabilities, shortage of specialised and skilled labour and deficiencies in supporting industries represent the main reasons behind the weak correlation observed for the Machinery Manufacturing, Chemical and Chemical products, Wood and Wood products and Rubber products industries. The results reflect the narrow-based positive' effects of FDI in the Malaysian manufacturing sector and also explicate the Government's recent amendments to its investment incentives towards the promotion of the four latter industries. 2003 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/24219/1/lingmeiyenrenee.pdf Ling, Renee Mei Yen (2003) Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Ling, Renee Mei Yen
Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia
title Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia
title_full Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia
title_fullStr Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia
title_full_unstemmed Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia
title_short Does Foreign Direct Investment Build The Capabilities Of The Host Country? Evidence From Malaysia
title_sort does foreign direct investment build the capabilities of the host country? evidence from malaysia
url https://eprints.nottingham.ac.uk/24219/