ISSN: 2226-3624
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Malaysia has shown a remarkable progress in its economic growth in the past decade. However, the economic growth in Malaysia has caused foreign direct investment (FDI) volatile in the market. The main objective of this research is to analyse the impact of FDI on Malaysia economic growth proxied by gross domestic product (GDP), foreign direct investment (FDI), gross fixed capital formation (DI), population growth (POP), and trade openness (TO). Analysis was done using Autoregressive Distributed Lag Model (ARDL) bound test approach with the period range of study was from 1970 until 2018. The study revealed that the chosen macroeconomics variables in the model contributed positively and significantly in increasing the growth of Malaysian economy. In terms of recommendations, there is a need for a policy change. The government ministry, primarily, the Ministry of International Trade and Industries (MITI), together with other government agencies such as Malaysia Investment Development Authority should formulate a strategy to upgrade the effectiveness of Malaysian tax policies and boost more business potential and attract investors from developed nations.
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In-Text Citation: (Halizam et al., 2021)
To Cite this Article: Halizam, M. A., Ridzuan, A. R., Shaari, M. S., Rahman, N. H. A., & Razak, M. I. M. (2021). Revisiting the Impact of Foreign Direct Investment on Malaysia Economic Growth. International Journal of Academic Research in Business and Social Sciences, 11(5), 814–826.
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