NEW EVIDENCE ON THE CAUSAL LINKAGES BETWEEN FOREIGN DIRECT INVESTMENT, EXPORTS AND IMPORTS IN MALAYSIA

Koi Wong and Tuck Cheong Tang ()

No 11-07, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: By extending Wong and Tang’s (2007) study, this study aims to further explore the causal relations between FDI (foreign direct investment), 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 FDI inflows on one hand and promoting links between multinational corporations (MNCs) and local firms on the other.

Keywords: Causality; exports; imports; foreign direct investment (search for similar items in EconPapers)
JEL-codes: C22 F21 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2007
New Economics Papers: this item is included in nep-sea
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Related works:
Journal Article: New Evidence on the Causal Linkages Between Foreign Direct Investment,Exports and Imports in Malaysia (2009)
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