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Jurnal Ekonomi Malaysia

51 (2) 2017 155 – 168

Kesan Pelaburan Langsung Asing terhadap Pertumbuhan Ekonomi: Perbandingan antara Negara Berpendapatan Tinggi dengan Sederhana Menggunakan Pendekatan Kointegrasi Asimetri
The Effect of Foreign Direct Investment on Economic Growth: Comparison Between High Income and Middle Income Countries using Asymmetric Cointegration Approach

Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

ruzianamohdghazi@gmail.com

Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

nrlin@ukm.edu.my

Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA

iby@ukm.edu.my

Abstract

The relationship between foreign direct investment (FDI) and economic growth has been widely debated, however the comparative research between high and middle income countries based on asymmetric cointegration is limited. Therefore, this study examines the impact of foreign direct investment on economic growth by comparing high and middle income countries using yearly time series data set spanning from 1970 to 2014. The paper applies Johansen (1988) procedure for symmetric cointegration, while threshold cointegration test proposed by Enders and Siklos (2001) is used for asymmetric cointegration. Based on the results, developed countries such as Japan and Korea have asymmetrical coefficient of long run equilibrium and both countries shows negative deviation adjust faster when there is a deviation in long run. In contrast, developing countries such as Malaysia and Indonesia shows that the long run equilibrium is symmetrical. This shows that the coefficient of adjustment is equal whether the equilibrium error is positive or negative. Thus, these results have particularly important for policy makers to understand the relationship between FDI and economic growth, especially with regard to the asymmetrical effect. Policy makers need to anticipate the effect of shocks to the economy.

Keywords

Asymmetric cointegration; economic growth; Foreign direct investment

Author’s Acknowledgement

Artikel ini adalah sebahagian daripada hasil kajian Skim Geran Penyelidikan Fundamental (FRGS/1/2014/ SS07/UKM/01/1) di bawah tajuk “Dynamic Comparative Modeling on Factor Affecting FDI Inflows between Malaysia and Selected ASEAN+3 Countries”.

http://dx.doi.org/10.17576/JEM-2017-5001-13
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Bibliography

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Mohd Ghazi, , Khalid, , & Yussof, (2017). Kesan Pelaburan Langsung Asing terhadap Pertumbuhan Ekonomi: Perbandingan antara Negara Berpendapatan Tinggi dengan Sederhana Menggunakan Pendekatan Kointegrasi Asimetri. Jurnal Ekonomi Malaysia, 51(2), 155–168. http://dx.doi.org/10.17576/JEM-2017-5001-13

@article{mohdghazi2017kesan,
  title={Kesan Pelaburan Langsung Asing terhadap Pertumbuhan Ekonomi: Perbandingan antara Negara Berpendapatan Tinggi dengan Sederhana Menggunakan Pendekatan Kointegrasi Asimetri},
  author={Mohd Ghazi, Ruziana and Khalid, Norlin and Yussof, Ishak},
  journal={Jurnal Ekonomi Malaysia},
  volume={51},
  number={2},
  pages={155—168},
 

year={2017},
}

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