New Evidence on the Causal Linkages Between Foreign Direct Investment,Exports and Imports in Malaysia

Koi Wong and Tuck Cheong Tang ()

The IUP Journal of Applied Economics, 2009, vol. VIII, issue 1, 20-25

Abstract: : By extending Wong and Tang s (2007) study, this paper aims at further exploring the causal relations between Foreign Direct Investment (FDI ), exports and imports. There is a unique long-run causal relationship running from exports as well as imports to FDI. A bidirectional causal relationship exists between exports and imports. These findings provide useful policy implications for sustaining the FDI inflows on one hand and promoting links between Multinational Corporations (MNCs) and local firms on the other.

Date: 2009
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Working Paper: NEW EVIDENCE ON THE CAUSAL LINKAGES BETWEEN FOREIGN DIRECT INVESTMENT, EXPORTS AND IMPORTS IN MALAYSIA (2007)
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