1、 1 中文 3490 字 毕业论文外文原文 外文题目： FDI and Economic Growth Relationship: An Empirical Study on Malaysia 出 处： International Business Research， April,2008 作 者： Har Wai Mun and Teo Kai Lin and Yee Kar Man 原 文： FDI and Economic Growth Relationship: An Empirical Study on Malaysia Har Wai Mun Teo Kai Lin Yee Kar
2、 Man Abstract Foreign direct investment (FDI) has been an important source of economic growth for Malaysia, bringing in capital investment, technology and management knowledge needed for economic growth. Thus, this paper aims to study the relationship between FDI and economic growth in Malaysia for
3、the period 1970-2005 using time series data. Ordinary least square (OLS) regressions and the empirical analysis are conducted by using annual data on FDI and economy growth in Malaysia over the 1970-2005 periods. The paper used annual data from IMF International Financial Statistics tables, publishe
4、d by International Monetary Fund to find out the relationship between FDI and economic growth in Malaysia case. Results show that LGDP, LGNI and the LFDI series in Malaysia are I(1) series. There is sufficient evidence to show that there are significant relationship between economic growth and forei
5、gn direct investment inflows (FDI) in Malaysia. FDI has direct positive impact on RGDP, which FDI rate increase by 1% will lead to the growth rate increase by 0.046072%. Furthermore, FDI also has direct positive impact on RGNI because when FDI rate increase by 1 %, this will lead the growth increase
6、 by 0.044877%. Keywords: Growth, FDI inflows, FDI and growth relationship, Malaysias economy 1. Introduction 2 This paper defines foreign direct investment (FDI) as international capital flows in which a firm in one country creates or expands a subsidiary in another. It involves not only a transfer
7、of resource but also the acquisition of control. Since the 1990s, FDI has been a source of economic growth for Malaysia, believing that besides needed capital, FDI brings in several benefits. The most important benefit for a developing country like Malaysia is that FDI could create more employment.
8、In addition, technology transfer is another benefit for the host countries. When the foreign factories are set up in their countries, they will expose to higher technology production and efficiency in management. Once in future, they able to produce goods and services as competitive as foreigners do
9、. Nevertheless, insufficient funds for investment are the main reason to seek FDI. Usually many less-developed countries lack of fund for investment. Foreign direct investment can help them to develop their country and improve their standard of living by creating more employment. According to Mohd N
10、azari Ismail (2001), he finds that foreign direct investment play a significant role in the Malaysian economy especially in the electronic industry. In addition to creating more jobs and generating export,the foreign multinationals have also contributed to the development of the technical capabiliti
11、es of the locals. This is through the process of technology transfer. 2. Trends and Patterns of FDI Flow in Malaysia Figure 1 presents the trend of FDI inflow to Malaysia, during 1970 to 2004. For the past two decade, Malaysia was receiving a lot FDI. FDI stock in Malaysia starts to grow up slowly b
12、y 1970s. FDI inflows had increased almost twenty-fold during 1970s to 1990s, from $94 million dollar in 1970s to $2.6 billion dollar by 1990s, although there was some fluctuation between the years. Even though the FDI was increased over the year, however, since the early of 1990s, there have been se
13、veral periods of slowdown. In 1993, FDI drop drastically dropped drastically due to a slowdown in investments from two main sources of investments for Malaysia - Japan and Taiwan. One of the main reasons for this slowdown is the rise in wage rates in Malaysia relative to other Asian countries (such
14、as China, Vietnam and Indonesia). The total FDI flows in Malaysia was peaked at 1996, when it achieve $7.3 billion dollar. The financial crisis of 1997 that affected most of the Southeast Asia also serves to reduce 3 FDI into Malaysia. Since the early of 2000s, the FDI flows in Malaysia tend to inco
15、nsistent and fluctuate randomly, however it also achieve an average inflows of US$3billion per year. Source: United Nations Conference on Trade and Development (UNCTAD), various issues. In general, Malaysia is the second fastest growing economy in the South East Asian region with an average Gross Na
16、tional Product (GNP) growth of eight-plus percent per year in the last seven years. Since independence in 1957, Malaysia has moved from an agriculturally based economy to a more diversified and export oriented one. The Malaysian market is fairly openly oriented, with tariffs only averaging approxima
17、tely fifteen percent and almost non-existent non-tariff barriers and foreign exchange controls. With a stable political environment, increasing per capita income, and the potential for regional integration throughout the Association of South East Asian Nations (ASEAN), Malaysia is an attractive pros
18、pect for FDI. The key success factor of the FDI contributes to the economic growth in Malaysia because of the good environment. If the environment not suitable, it will not encourage foreign investors come to invest. Good favorable conditions make investors face fewer problems because all investors
19、can run their business conveniently in order to make more profit with life safety. Few vital clues for foreign direct investment include political stability, economic stability, lower wages, and easy accessibility to plentiful raw material, special rights, and person safety. Long term political stability makes foreign investors confident with theirs businesses will succeed and remain profitable.Besides, economic instability like inflation, foreign exchange fluctuation and economic crisis also another important environment factor for
