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Foreign Direct Investment and Electronics Exports: Exploratory Empirical Evidence from Malaysia's Top Five Electronics Exports

Author

Listed:
  • Tuck Cheong Tang

    (Monash University Malaysia)

  • Koi Nyen Wong

    (Monash University Malaysia)

Abstract

The foreign direct investment (FDI) has contributed significantly to Malaysia's electronics exports as well as the growth and development of the electronics industry as a result of the export-oriented industrialization initiatives undertaken since 1970s. The aim of this study is to explore the causation between FDI and electronics exports by using Malaysia''s top five electronics exports by SITC (Standard International Trade Classification) product groups. The findings show a bi-directional causality between FDI and exports of semiconductor devices in the short run. The present study provides important policy implications towards the competitiveness of electronics exports and also promoting and targeting FDI inflows into key and priority growth in the electronics sub-sectors.

Suggested Citation

  • Tuck Cheong Tang & Koi Nyen Wong, 2007. "Foreign Direct Investment and Electronics Exports: Exploratory Empirical Evidence from Malaysia's Top Five Electronics Exports," Economics Bulletin, AccessEcon, vol. 6(14), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-07f20002
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    References listed on IDEAS

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    Cited by:

    1. Koi Nyen Wong & Tuck Cheong Tang & Dietrich Fausten, 2009. "Foreign Direct Investment and Services Trade: Evidence from Malaysia and Singapore," Global Economic Review, Taylor & Francis Journals, vol. 38(3), pages 265-276.
    2. Koi Nyen Wong & Tuck Cheong Tang, 2009. "New Evidence on the Causal Linkages Between Foreign Direct Investment,Exports and Imports in Malaysia," The IUP Journal of Applied Economics, IUP Publications, vol. 0(1), pages 20-25, January.
    3. Soo Khoon Goh & Koi Nyen Wong, 2014. "Could Inward FDI Offset the Substitution Effect of Outward FDI on Domestic Investment? Evidence from Malaysia," Prague Economic Papers, Prague University of Economics and Business, vol. 2014(4), pages 413-425.
    4. Florentina Viorica GHEORGHE & Artur - Emilian SIMION, 2018. "The link between international trade flows of "Machinery and transport equipment" and foreign direct investment in Romania," Computational Methods in Social Sciences (CMSS), "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences, vol. 6(1), pages 42-54, June.
    5. Chowdhury, Mamta B, 2011. "India’s Outward Foreign Direct Investment: Closed Doors to Open Souk," MPRA Paper 32828, University Library of Munich, Germany.
    6. Flaaen, Aaron & Ghani, Ejaz & Mishra, Saurabh, 2013. "How to avoid middle income traps ? evidence from Malaysia," Policy Research Working Paper Series 6427, The World Bank.
    7. goh, sookhoon, 2012. "Could inward FDI offset the substitution effect of outward FDI on domestic investment? evidence from Malaysia," MPRA Paper 43237, University Library of Munich, Germany.
    8. Radovan Kastratović, 2020. "The impact of foreign direct investment on host country exports: A meta‐analysis," The World Economy, Wiley Blackwell, vol. 43(12), pages 3142-3183, December.

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    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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