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Empirical Evidence on the Causality Relationship between Foreign Direct Investment and Economic Growth in the Developing Countries

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  • Zakaria, Zukarnain

    (Faculty of Management and Human Resource Development University of Technology Malaysia 81310 Skudai, Johor Malaysia)

Abstract

The causality relationship between economic growth and foreign direct investment has generated intense research interest. The empirical study investigated the casual relationship between economic growth and foreign direct investment in 37 developing countries in multivariate framework. The major findings are, in most cases, foreign direct investment has no effect on economic growth. The study also found little evidence that economic growth cause the inflow of foreign direct investment to the developing countries.

Suggested Citation

  • Zakaria, Zukarnain, 2009. "Empirical Evidence on the Causality Relationship between Foreign Direct Investment and Economic Growth in the Developing Countries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 43, pages 27-52.
    • Handle: RePEc:ukm:jlekon:v:43:y:2009:i::p:27-52
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