Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector
This study aims to incorporate the role of domestic financial system in transferring the technological diffusion embodied in FDI inflows on the Malaysian economy from 1970–2001. Applying bound test, or unrestricted error correction model (UECM) proposed by Pesaran et al. (2001), the presence of FDI...
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| Format: | Article |
| Language: | English |
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World Scientific Publishing
2005
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| Online Access: | http://psasir.upm.edu.my/id/eprint/51644/ http://psasir.upm.edu.my/id/eprint/51644/1/Foreign%20direct%20investment%20and%20economic%20growth%20in%20Malaysia%20the%20role%20of%20domestic%20financial%20sector.pdf |
| _version_ | 1848851887442362368 |
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| author | Choong, Chee Keong Yusop, Zulkornain Soo, Siew Choo |
| author_facet | Choong, Chee Keong Yusop, Zulkornain Soo, Siew Choo |
| author_sort | Choong, Chee Keong |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study aims to incorporate the role of domestic financial system in transferring the technological diffusion embodied in FDI inflows on the Malaysian economy from 1970–2001. Applying bound test, or unrestricted error correction model (UECM) proposed by Pesaran et al. (2001), the presence of FDI inflows creates a positive technological diffusion in both short- and long-run if the evolution of domestic financial system has achieved a certain minimum level. This implies that the improvement of technology level in Malaysia in the long run is due to the spillover efficiency effects from FDI. Hence, the study suggests that FDI tends to be more likely to enhance economic growth more efficiently when a recipient country has a well-developed and well-functioning financial sector. |
| first_indexed | 2025-11-15T10:29:19Z |
| format | Article |
| id | upm-51644 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T10:29:19Z |
| publishDate | 2005 |
| publisher | World Scientific Publishing |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-516442017-04-05T05:32:03Z http://psasir.upm.edu.my/id/eprint/51644/ Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector Choong, Chee Keong Yusop, Zulkornain Soo, Siew Choo This study aims to incorporate the role of domestic financial system in transferring the technological diffusion embodied in FDI inflows on the Malaysian economy from 1970–2001. Applying bound test, or unrestricted error correction model (UECM) proposed by Pesaran et al. (2001), the presence of FDI inflows creates a positive technological diffusion in both short- and long-run if the evolution of domestic financial system has achieved a certain minimum level. This implies that the improvement of technology level in Malaysia in the long run is due to the spillover efficiency effects from FDI. Hence, the study suggests that FDI tends to be more likely to enhance economic growth more efficiently when a recipient country has a well-developed and well-functioning financial sector. World Scientific Publishing 2005 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/51644/1/Foreign%20direct%20investment%20and%20economic%20growth%20in%20Malaysia%20the%20role%20of%20domestic%20financial%20sector.pdf Choong, Chee Keong and Yusop, Zulkornain and Soo, Siew Choo (2005) Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector. The Singapore Economic Review, 50 (2). pp. 245-268. ISSN 0217-5908; ESSN: 1793-6837 http://www.worldscientific.com/doi/abs/10.1142/S0217590805001998?journalCode=ser 10.1142/S0217590805001998 |
| spellingShingle | Choong, Chee Keong Yusop, Zulkornain Soo, Siew Choo Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector |
| title | Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector |
| title_full | Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector |
| title_fullStr | Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector |
| title_full_unstemmed | Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector |
| title_short | Foreign direct investment and economic growth in Malaysia: the role of domestic financial sector |
| title_sort | foreign direct investment and economic growth in malaysia: the role of domestic financial sector |
| url | http://psasir.upm.edu.my/id/eprint/51644/ http://psasir.upm.edu.my/id/eprint/51644/ http://psasir.upm.edu.my/id/eprint/51644/ http://psasir.upm.edu.my/id/eprint/51644/1/Foreign%20direct%20investment%20and%20economic%20growth%20in%20Malaysia%20the%20role%20of%20domestic%20financial%20sector.pdf |