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Examining the Equilibrium Relationships between Foreign Direct Investment Inflows and Employment in Manufacturing and Services Sectors: Evidence from Malaysia

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  • Hussain Ali Bekhet

Abstract

The current paper examines the long-run and short-run equilibrium relationships between FDI inflows and employment in Malaysian manufacturing and services sectors using ARDL approach for the 19722011 period. It employs ADF and PP tests to detect the stationary levels of above variables. Also, it utilizes the bounds F-statistics test to identify the co-integration among variables. Results of ARDL approach indicate the presence of significant long-run and short-run equilibrium relationships between FDI inflows and employment in manufacturing and services sectors. The paper’s findings are of particular interest and importance to Malaysian policy makers towards increasing FDI inflows and employment in manufacturing and services sectors.

Suggested Citation

  • Hussain Ali Bekhet, 2013. "Examining the Equilibrium Relationships between Foreign Direct Investment Inflows and Employment in Manufacturing and Services Sectors: Evidence from Malaysia," Journal of Social and Development Sciences, AMH International, vol. 4(1), pages 32-38.
    • Handle: RePEc:rnd:arjsds:v:4:y:2013:i:1:p:32-38
    DOI: 10.22610/jsds.v4i1.733
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    References listed on IDEAS

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    Cited by:

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    2. Mohamed Ibrahim Mugableh, 2019. "Fiscal Policy Tools and Economic Growth in Jordan: Evidence from Time-Series Models," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 11(1), pages 1-7, January.
    3. Hussain Ali Bekhet & Raed Walid Al-Smadi, 2016. "The dynamic causality between FDI inflow and its determinants in Jordan," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 11(1), pages 26-47.
    4. Radi Atoom & Eyad Malkawi & Basima Al Share, 2017. "Utilizing Australian Shareholders' Association (ASA): Fifteen Top Financial Ratios to Evaluate Jordanian Banks' Performance," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 7(1), pages 1-7.
    5. Mohammad Shabib Khasawneh, 2016. "An Empirical Study for Work Stresses in Jordanian Tourism Companies," International Business Research, Canadian Center of Science and Education, vol. 9(11), pages 169-177, November.
    6. Radi Atoom & Eyad Malkawi & Basima Al Share, 0. "Utilizing Australian Shareholders' Association (ASA): Fifteen Top Financial Ratios to Evaluate Jordanian Banks' Performance," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 0, pages 7.
    7. Mohammad Salem Oudat & Nursilah Ahmad & Mohamad Yazis, 2016. "The impact of macroeconomic variables and global events on banking system: Evidence from Jordanian banking system," Journal of Administrative and Business Studies, Professor Dr. Usman Raja, vol. 2(1), pages 19-24.
    8. Bekhet, Hussain Ali & Al-Smadi, Raed Walid, 2015. "Determinants of Jordanian foreign direct investment inflows: Bounds testing approach," Economic Modelling, Elsevier, vol. 46(C), pages 27-35.
    9. Hani Ali Aref Al-Rawashdeh, 2017. "The Role of Internal Control Components in the Maintenance of Public Funds: Applied Study on the Jordanian Ministry of Justice – North Province as Perceived by the Workers of Internal Control and Acco," International Business Research, Canadian Center of Science and Education, vol. 10(5), pages 189-201, May.
    10. Mohamed Ibrahim Mugableh, 2017. "Estimating Elasticity Function of Jordanian Aggregate Import Demand," Applied Economics and Finance, Redfame publishing, vol. 4(2), pages 33-37, March.

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