UPSI Digital Repository (UDRep)
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UPSI Digital Repository (UDRep)
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| Abstract : Perpustakaan Tuanku Bainun |
| The study examines the impact of domestic investment on economic growth in Malaysia together with the labour force and foreign direct investment. This study has used the autoregressive distributed lag (ARDL) model to analyse the annual data over fifty-three years, testing unit roots of the variables, cointegration, and long- and short-run relationships. The results of this study highlight that there is long run cointegration among variables of domestic investment (DI), labour force (LAB), foreign direct investment (FDI), and economic growth (GDP) in Malaysia. Labour force and foreign direct investment has a positive impact on Malaysia_s economic growth in the long run, but domestic investment shows the opposite. Furthermore, all the variables (DI, LAB, FDI) have positive impact on economic growth in the short run. The findings suggest that policies should improve its investment efficiency and productivity, enhance financing access for domestic investment, and provide more tax incentives and subsidies to domestic investors. Moreover, to maintain a positive relationship between labour and economic growth in Malaysia, human capital needs to reinforce and as for FDI, the government should attract high-quality investments such as investing in green technology and automation to increase innovation in the country. |
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