Exports, education spending, foreign direct investment, and growth in Malaysia
This paper examines the relationship among exports, foreign direct investment(FDI), education spending and Malaysia’s economic development using the cointegration technique, VECM, and the Granger causality test. The results suggest that the variables: GDP, exports, foreign direct investment and e...
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2008
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| Online Access: | http://irep.iium.edu.my/26010/ http://irep.iium.edu.my/26010/ http://irep.iium.edu.my/26010/1/11-Mohammed_B._Yussof.pdf |
| Summary: | This paper examines the relationship among exports, foreign direct investment(FDI), education
spending and Malaysia’s economic development using the cointegration technique, VECM, and the
Granger causality test. The results suggest that the variables: GDP, exports, foreign direct investment
and education spending are cointegrated. The estimated long-run relationship shows that exports, FDI
and education expenditure could explain the variation in real GDP where they are significant at one
percent level. The Granger causality test indicates that the exports, foreign direct investment and
education expenditure cause economic growth where they are also significant at one percent level.
These imply that the Malaysian export-oriented, liberal foreign direct investment and education
development strategies have played important role in the development of Malaysian economy. |
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