Title :
Estimating an optimal threshold value for foreign investment in Malaysia
Author :
Sidek, Noor Zahirah Mohd
Author_Institution :
Dept. of Econ., UiTM Kedah, Kedah, Malaysia
Abstract :
Economists unanimously agree that foreign direct investment (FDI) somehow brought about economic growth and development. In this paper, we re-examine this popular view by estimating an optimal threshold value needed to promote growth. Results show that FDI enhances growth only if it is more than 3.14 percentage of GDP in the case of Malaysia. Hence, policy enablers should ensure an annual increase of FDI influx of more 3.14 percent of GDP to ensure positive and sustainable growth.
Keywords :
economic indicators; investment; FDI; GDP; Malaysia; economic development; economic growth; foreign direct investment; optimal threshold value estimation; Benchmark testing; Economic indicators; Equations; Humans; Investments; Mathematical model; Malaysia; optimal foreign investment; threshold autoregressive model;
Conference_Titel :
Business Engineering and Industrial Applications Colloquium (BEIAC), 2012 IEEE
Conference_Location :
Kuala Lumpur
Print_ISBN :
978-1-4673-0425-2
DOI :
10.1109/BEIAC.2012.6226059
