US FOREIGN DIRECT INVESTMENT (FDI) AND MANUFACTURING SECTOR IN MALAYSIA

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Published: Jan 31, 2016
Keywords:
spillover effect, US FDI, manufacturing sector

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Tajul Ariffin Masron
School of Management, Universiti Sains Malaysia, 11800 USM Pulau Pinang, Malaysia
Mohd Khairul Hisyam Hassan
Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia

Abstract


Utilising several manufacturing sub-sectors in Malaysia, this study attempts to investigate the spillover effect of US FDI on Malaysian economy. By identifying this issue, it could help in terms of selecting future FDI-related strategies in order to magnify the positive effect of FDI inflows. Applying seemingly unrelated regression (SUR) method, this study observes that there is no guarantee that FDI inflows into various sectors within manufacturing industry will generate positive externalities.


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How to Cite
Tajul Ariffin Masron, & Mohd Khairul Hisyam Hassan. (2016). US FOREIGN DIRECT INVESTMENT (FDI) AND MANUFACTURING SECTOR IN MALAYSIA. Asian Academy of Management Journal, 21(1), 89–110. https://ejournal.usm.my/aamj/article/view/aamj_vol21-no-1-2016_5
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Vol. 21 No. 1 (2016)
Section
Original Articles
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