Blueprinting the equilibrium relationships between inward FDI and employment in the Malaysian economic sectors: Time series models approach

Hussain Ali Bekhet, Mohamed Ibrahim Mugableh

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Using annual time-series data for the (1972-2012) period, the present paper re-examines the multivariate inward FDI function for Malaysia, in particular, employment in economic sectors. It employs Pesaran, Shin, and Smith approach to analyse the co-integration and equilibrium relationships. The Granger causality test in levels is applied to determine the causality directions between inward FDI and employment in economic sectors. Results of bounds F-statistics suggest that employment in economic sectors is co-integrated with inward FDI. The results of the Granger causality test indicate a unidirectional causality, running from inward FDI to employment in the manufacturing sector, and from employment in the construction sector to inward FDI. These results have practical policy implications for decision makers in developing economies in terms of increasing FDI and employment levels in economic sectors.

Original languageEnglish
Pages (from-to)136-150
Number of pages15
JournalGlobal Business and Economics Review
Volume18
Issue number2
DOIs
Publication statusPublished - 01 Jan 2016

Fingerprint

Economic sectors
Time series models
Causality
Granger causality test
Malaysia
Decision maker
Construction sector
Developing economies
Cointegration
Manufacturing sector
Statistics
Policy implications
Integrated
Time series data

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics and Econometrics

Cite this

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