Do FDI and foreign remittances inflow affect the unemployment rate in Malaysia and Philippines a new insight

Ku, Yee Yao

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Type :	Final Year Project
Subject :	HG Finance
Main Author :	Ku, Yee Yao
Title :	Do FDI and foreign remittances inflow affect the unemployment rate in Malaysia and Philippines a new insight
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Place of Production :	Tanjong Malim
Publisher :	Fakulti Pengurusan dan Ekonomi
Year of Publication :	2025
Corporate Name :	Perpustakaan Tuanku Bainun
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Abstract : Perpustakaan Tuanku Bainun

The goal of this study was to look at the impact of foreign direct investment (FDI) and foreign remittances on unemployment in Malaysia and Philippines. The data covers Malaysia and Philippines from 1987 until 2022. This study employed EViews 10 and the ARDL approach to gather both long-run and short-run estimates. The study used unemployment as a dependent variable and FDI and foreign remittances as independent variables. The real effective exchange rate, GDP growth rate, exports, and inflation rate are controlled variables. This study examines the link between unemployment, foreign direct investment, foreign remittances, inflation, exports, GDP growth rate, and the exchange rate in Malaysia and the Philippines. Besides, this study also investigates the cointegration between the endogenous variable and exogenous variables. Thus, also estimate the short-run dynamic relationship between the endogenous variable and exogenous variables and estimate the long-run dynamic relationship between the endogenous variable and exogenous variables. This study suggests that both countries should put skills development initiatives in place for domestic workers and create an inviting environment for international investors to minimize unemployment.

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