Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia

Ali Mohammed Khalel Al-Shawaf; Mahmoud Khalid Almsafir

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Research Article Volume 10 Issue 2

Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia

Ali Mohammed Khalel Al-shawaf • Mahmoud Khalid Almsafir

Published: 25 Apr 2016 Issue:Volume 10 Issue 2 Apr 2016 Author details below

Mahmoud Khalid Almsafir

Universiti Tenaga Nasional

Outward FDI inward FDI economic growth globalization ARDL Malaysia

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Abstract

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When a nation that links itself to the global market, this means that the nation would embark itself in the path towards globalization. Global markets offer greater opportunity for domestic firms to tap into larger markets around the world. This translates the possibility of having more access to more capital flow, technology, cheaper imports, and larger exports. One of the ways a domestic firm gets foreign capital, would be through Foreign Direct Investments (FDI). This study aims to look at Malaysiaâ€™s inward and outward FDI and determine their relationship with economic growth. Annual data covers over the period of 1984 to 2013 and tested based on the autoregressive distributed lag (ARDL) model. The results show that there is a positive long-run relationship between inward FDI with economic growth. It was noted that outward FDI have an indirect relationship with economic growth. There is unidirectional granger causality between them as well as between inward and outward FDI.

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Published 25 Apr 2016

How to Cite

Al-shawaf, A. M. K. & Almsafir, M. K.. (2016). Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia. Journal of Business and Retail Management Research, Volume 10 Issue 2.

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APA

Al-shawaf, A. M. K. & Almsafir, M. K.. (2016). Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia. Journal of Business and Retail Management Research, Volume 10 Issue 2.

MLA

Al-shawaf, Ali Mohammed Khalel, and Mahmoud Khalid Almsafir. "Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia." Journal of Business and Retail Management Research, Volume 10 Issue 2, 2016.

Chicago

Ali Mohammed Khalel Al-shawaf and Mahmoud Khalid Almsafir. "Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia." Journal of Business and Retail Management Research Volume 10 Issue 2 (25 Apr 2016).

Harvard

Al-shawaf, A. M. K. & Almsafir, M. K. (2016) Economic globalization: role of inward and outward FDI with economic growth - evidence from Malaysia. Journal of Business and Retail Management Research, Volume 10 Issue 2

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