The Technology and Knowledge Spillover Effects of FDI on Labour Productivity

Norhanishah Mohamad Yunus ()
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Norhanishah Mohamad Yunus: School of Distance Education, Universiti Sains Malaysia, Malaysia Author-2-Name: Noraida Abdul Wahob Author-2-Workplace-Name: Unit Peneraju Agenda Bumiputera, Prime Minister's Department,47810, Petaling Jaya, Selangor, Malaysia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:

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Abstract: Objective - The purpose of this study is to investigate both "technology" and "knowledge" effects of foreign direct investment (FDI) on labour productivity in the medium-high manufacturing industries' classification in Malaysia. Methodology/Technique - This study employs a Seemingly Unrelated Regression (SUR) estimator. Findings - The results conclude that diffusion of knowledge, which increases labour productivity, is greater via "learning effects" as compared to the investor countries' capital investments in the medium-high manufacturing industries. Novelty - This study expands the body of knowledge about the benefits of FDI spillovers on labour productivity according to specific investor countries, however, are rarely researched particularly in developing countries and at the industry level. Type of Paper - Empirical.

Keywords: Foreign Direct Investment; Labour Productivity; Technology Spillovers; Knowledge Spillovers (search for similar items in EconPapers)
JEL-codes: E60 J24 (search for similar items in EconPapers)
Pages: 8
Date: 2021-03-31
New Economics Papers: this item is included in nep-cse, nep-cwa, nep-eff, nep-int, nep-isf, nep-knm, nep-mac and nep-sea
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Published inJournal of Business and Economics Review, Volume 5, Issue4

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Persistent link: https://EconPapers.repec.org/RePEc:gtr:gatrjs:jber199

DOI: 10.35609/jber.2021.5.4(5)

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