Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia
Foreign direct investment (FDI) has been an important source of economic growth for Malaysia, bringing in capital investment, technology and management knowledge needed for economic growth. Among the sectors in Malaysia, service sector is the main contributor of FDI from other countries. Thus, this...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2022
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| Online Access: | http://journalarticle.ukm.my/20970/ http://journalarticle.ukm.my/20970/1/QT%208.pdf |
| _version_ | 1848815238202261504 |
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| author | Tan, Kai Lun Humaida Banu Samsudin, |
| author_facet | Tan, Kai Lun Humaida Banu Samsudin, |
| author_sort | Tan, Kai Lun |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Foreign direct investment (FDI) has been an important source of economic growth for Malaysia, bringing in capital investment, technology and management knowledge needed for economic growth. Among the sectors in Malaysia, service sector is the main contributor of FDI from other countries. Thus, this study aims to analyse the trend of contributions of FDI from foreign countries in Malaysia. The study also finds the relationship between FDI in service sector and GDP in Malaysia for the year 2010 to 2020 using time series data. Autoregressive Distributed Lag (ARDL) model and empirical analysis are conducted by using quarterly data on FDI in service sector and GDP in Malaysia. The results provide evidence that there is a positive and significant long-run relationship between FDI in service sector and GDP in Malaysia which LFDI rate increase by 1% will lead to the LKDNK rate to increase by 0.15%. However, the empirical evidence has proven that no short-run relationship between FDI in service sector and GDP in Malaysia. Diagnostic tests showed that the residual is normally distributed, free from autocorrelation and heteroscedasticity. This confirms the validity of the ARDL model which is ARDL(3,4). |
| first_indexed | 2025-11-15T00:46:48Z |
| format | Article |
| id | oai:generic.eprints.org:20970 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:46:48Z |
| publishDate | 2022 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:209702023-01-17T07:57:14Z http://journalarticle.ukm.my/20970/ Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia Tan, Kai Lun Humaida Banu Samsudin, Foreign direct investment (FDI) has been an important source of economic growth for Malaysia, bringing in capital investment, technology and management knowledge needed for economic growth. Among the sectors in Malaysia, service sector is the main contributor of FDI from other countries. Thus, this study aims to analyse the trend of contributions of FDI from foreign countries in Malaysia. The study also finds the relationship between FDI in service sector and GDP in Malaysia for the year 2010 to 2020 using time series data. Autoregressive Distributed Lag (ARDL) model and empirical analysis are conducted by using quarterly data on FDI in service sector and GDP in Malaysia. The results provide evidence that there is a positive and significant long-run relationship between FDI in service sector and GDP in Malaysia which LFDI rate increase by 1% will lead to the LKDNK rate to increase by 0.15%. However, the empirical evidence has proven that no short-run relationship between FDI in service sector and GDP in Malaysia. Diagnostic tests showed that the residual is normally distributed, free from autocorrelation and heteroscedasticity. This confirms the validity of the ARDL model which is ARDL(3,4). Penerbit Universiti Kebangsaan Malaysia 2022 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20970/1/QT%208.pdf Tan, Kai Lun and Humaida Banu Samsudin, (2022) Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia. Journal of Quality Measurement and Analysis, 18 (3). pp. 95-109. ISSN 2600-8602 https://www.ukm.my/jqma/current/ |
| spellingShingle | Tan, Kai Lun Humaida Banu Samsudin, Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia |
| title | Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia |
| title_full | Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia |
| title_fullStr | Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia |
| title_full_unstemmed | Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia |
| title_short | Relationship between foreign direct investment (FDI) of the service sector and GDP in Malaysia |
| title_sort | relationship between foreign direct investment (fdi) of the service sector and gdp in malaysia |
| url | http://journalarticle.ukm.my/20970/ http://journalarticle.ukm.my/20970/ http://journalarticle.ukm.my/20970/1/QT%208.pdf |