Foreign direct investment and economic growth in Malaysia: the role of financial development
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...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2012
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| Online Access: | http://psasir.upm.edu.my/id/eprint/51277/ http://psasir.upm.edu.my/id/eprint/51277/1/12-24.pdf |
| _version_ | 1848851788887752704 |
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| author | Ismail, Nik Zirwatul Fatihah Wan Ngah, Wan Azman Saini |
| author_facet | Ismail, Nik Zirwatul Fatihah Wan Ngah, Wan Azman Saini |
| author_sort | Ismail, Nik Zirwatul Fatihah |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | 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. |
| first_indexed | 2025-11-15T10:27:45Z |
| format | Conference or Workshop Item |
| id | upm-51277 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:27:45Z |
| publishDate | 2012 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-512772017-04-03T07:44:38Z http://psasir.upm.edu.my/id/eprint/51277/ Foreign direct investment and economic growth in Malaysia: the role of financial development Ismail, Nik Zirwatul Fatihah Wan Ngah, Wan Azman Saini 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. Faculty of Economics and Management, Universiti Putra Malaysia 2012 Conference or Workshop Item PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51277/1/12-24.pdf 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). |
| spellingShingle | Ismail, Nik Zirwatul Fatihah Wan Ngah, Wan Azman Saini Foreign direct investment and economic growth in Malaysia: the role of financial development |
| title | Foreign direct investment and economic growth in Malaysia: the role of financial development |
| title_full | Foreign direct investment and economic growth in Malaysia: the role of financial development |
| title_fullStr | Foreign direct investment and economic growth in Malaysia: the role of financial development |
| title_full_unstemmed | Foreign direct investment and economic growth in Malaysia: the role of financial development |
| title_short | Foreign direct investment and economic growth in Malaysia: the role of financial development |
| title_sort | foreign direct investment and economic growth in malaysia: the role of financial development |
| url | http://psasir.upm.edu.my/id/eprint/51277/ http://psasir.upm.edu.my/id/eprint/51277/1/12-24.pdf |