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Impact of FDI and Productive Government Spending on Malaysia's Economic Growth
EPPE3996 - Academic Paper
15 Pages • Essays / Projects • Year Uploaded: 2021
This study aims at: analysing the impact of foreign direct investment (FDI) and government expenditure (G) on economic growth of Malaysia; investigating the productivity components of government expenditure on Research and Development (R&D) Malaysia. Cointegression unit border test or auto regression dispersed lag (ARDL) was used to ensure the existence of a short-run relationship between the various variables. The study findings showed a short-run relationship between the independent and the depend variables. The short-run test showed that only the variable of government development expenditure on security (SEC) has a short-run relationship towards economic growth. Conversely, FDI and G did not show short-run relationship towards the economic growth of Malaysia.
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