New evidence on the causal linkages between foreign direct Investment, exports and imports in Malaysia

2017-06-06T02:26:51Z (GMT) by Wong, Koi Nyen Tang, Tuck Cheong
By extending Wong and Tang’s (2007) study, this study aims to further explore the causal relations between FDI (foreign direct investment), exports and imports. There is a unique long-run causal relationship running from exports as well as imports to FDI. A bidirectional causal relationship exists between exports and imports. These findings provide useful policy implications for sustaining FDI inflows on one hand and promoting links between multinational corporations (MNCs) and local firms on the other.