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1 中文 3490 字 畢業(yè)論文外文原文 外文題目: FDI and Economic Growth Relationship: An Empirical Study on Malaysia 出 處: International Business Research, April,2020 作 者: Har Wai Mun and Teo Kai Lin and Yee Kar Man 原 文: FDI and Economic Growth Relationship: An Empirical Study on Malaysia Har Wai Mun Teo Kai Lin Yee Kar Man Abstract 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. Thus, this paper aims to study the relationship between FDI and economic growth in Malaysia for the period 19702020 using time series data. Ordinary least square (OLS) regressions and the empirical analysis are conducted by using annual data on FDI and economy growth in Malaysia over the 19702020 periods. The paper used annual data from IMF International Financial Statistics tables, published by International Moary Fund to find out the relationship between FDI and economic growth in Malaysia case. Results show that LGDP, LGNI and the LFDI series in Malaysia are I(1) series. There is sufficient evidence to show that there are significant relationship between economic growth and foreign direct investment inflows (FDI) in Malaysia. FDI has direct positive impact on RGDP, which FDI rate increase by 1% will lead to the growth rate increase by %. Furthermore, FDI also has direct positive impact on RGNI because when FDI rate increase by 1 %, this will lead the growth increase by %. Keywords: Growth, FDI inflows, FDI and growth relationship, Malaysia’s economy 1. Introduction 2 This paper defines foreign direct investment (FDI) as international capital flows in which a firm in one country creates or expands a subsidiary in another. It involves not only a transfer of resource but also the acquisition of control. Since the 1990s, FDI has been a source of economic growth for Malaysia, believing that besides needed capital, FDI brings in several benefits. The most important benefit for a developing country like Malaysia is that FDI could create more employment. In addition, technology transfer is another benefit for the host countries. When the foreign factories are set up in their countries, they will expose to higher technology production and efficiency in management. Once in future, they able to produce goods and services as petitive as foreigners do. Nevertheless, insufficient funds for investment are the main reason to seek FDI. Usually many lessdeveloped countries lack of fund for investment. Foreign direct investment can help them to develop their country and improve their standard of living by creating more employment. According to Mohd Nazari Ismail (2020), he finds that foreign direct investment play a significant role in the Malaysian economy especially in the electronic industry. In addition to creating more jobs and generating export,the foreign multinationals have also contributed to the development of the technical capabilities of the locals. This is through the process of technology transfer. 2. Trends and Patterns of FDI Flow in Malaysia Figure 1 presents the trend of FDI inflow to Malaysia, during 1970 to 2020. For the past two decade, Malaysia was receiving a lot FDI. FDI stock in Malaysi