The role of Fdi intensity in achieving productivity driven growth in Malaysian economy

• Elsadig Musa Ahmed ^[1]
  1. [1] Multimedia University

     Multimedia University

     Malasia

     
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 10, Nº. 1, 2010, págs. 195-208
• Idioma: inglés
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• Resumen

  • This study investigates the decomposition of labour productivity growth into contributions of capital deepening, increased usage of Foreign Direct Investment intensity (FDI intensity), and the simultaneous contribution of the quality of these factors. This is expressed as the Total Factor Productivity (TFP) per unit of labour growth in achieving productivity-driven growth in the Malaysian economy. The results of this modified extensive growth theory model show that the productivity growth of Malaysia’s economy is input-driven and being based on FDI when the results of TFP per unit of labour growth were compared. The study also finds that there is a negative contribution of the TFP per unit of labour growth during the sub-period of 1987-1996, although the contribution of the labour productivity was one of the highest during this sub-period.