Jurnal Ekonomi Malaysia
52 (1) 2018 297 – 309
Department of Economics
Faculty of Economics and Management
University Putra Malaysia
43400 Serdang Selangor
MALAYSIA
Department of Economics
Faculty of Economics and Management
University Putra Malaysia
43400 Serdang Selangor
MALAYSIA
Abstract
This study evaluates the impact of outward foreign direct investment (FDI) on domestic output of East Asian economies. It focuses on FDI from eight East Asian economies to Japan, the United States and United Kingdom. The analyses are carried out using annual data at both aggregate and disaggregate level for the 1981-2010 period. The result using aggregate data reveal that there is no evidence to support the idea that outward FDI is growth-enhancing. However, the results based on disaggregate data shows that only outward FDI to the United States are found to benefit East Asian economies. Meanwhile, investments in Japan and the United Kingdom do not appear to have any positive impact. These findings suggest that locational decision for outward FDI is critically important as not all destinations will bring positive benefits for the source countries.
Keywords
Author’s Acknowledgement
This work was supported by Fundamental Research Grant, Ministry of Higher Education, Malaysia (#05- 02-14-1516FR) and Universiti Putra Malaysia Research Grant (#GPIPB/2024/9440903).
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Bibliography
@article{kazemi2018outward,
title={Outward Foreign Direct Investment and Domestic Output: Evidence from East Asian Economies},
author={Kazemi, Morteza and Azman-Saini, W.N.W. and Naseeem, N.A.M},
journal={Jurnal Ekonomi Malaysia},
volume={52},
number={1},
pages={297—309},
}
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