How China’s FDI Affects Malaysia’s Export Performance?
Dublin Core
Title
How China’s FDI Affects Malaysia’s Export Performance?
Subject
export
foreign direct investment
Malaysia
China
ARDL
Description
Malaysia has been experiencing increasing FDI inflows over the past decades with the changing of major contributors. Currently, China is the largest contributor to Malaysia’s net FDI inflows, while its contribution was limited in the past decade. This paper aims to provide additional evidence to the literature of the FDI’s impact on export performance through disaggregating the FDI and utilizing the quarterly data between Q1:2010 and Q1:2018. The empirical results based on the autoregressive distributed lag (ARDL) approachreveal that China’s FDI helps promote Malaysian export activity except for the export of machinery, equipment and parts. The latter is, however, crucial in long-run growth through promoting technology advancement. This implies that China’s FDI inflow to Malaysia has a more significant impact on economic performance in the short run. Therefore, Malaysian policymakers need to provide better incentives to attract higher value-added FDI into the country to benefit in the long run.
Creator
TEE, Chee-Lip
NG, Kar-Yee
LAW, Chee-Hong
Source
INTERNATIONAL JOURNAL OF CHINA STUDIES; International Journal of China Studies Vol.12 No.1 June 2021; 115-131
2180-3250
Publisher
Institute of China Studies, Universiti Malaya
Date
2022-05-06
Rights
Copyright (c) 2021 Institute of China Studies
Relation
Format
application/pdf
Language
eng
Type
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Identifier
Collection
Citation
Chee TEE-Lip, Kar NG-Yee and Chee LAW-Hong, How China’s FDI Affects Malaysia’s Export Performance?, Institute of China Studies, Universiti Malaya, 2022, accessed November 1, 2024, https://igi.indrastra.com/items/show/2608