Foreign direct investment in manufacturing sector in Malaysia: the impact on the trade, economic growth and employment / Sainatulakma Ibrahim

The central theme of this paper has discussed The Foreign Direct Investment (FDI) in Manufacturing Sector in Malaysia: The Impact on the Trade, Economic Growth and Employment. The prime objective of this paper is to ascertain the relationship between the inflow of FDI in manufacturing sector with the trade, economic growth and employment. The theoretical framework has been further explained in this paper. The discussions of the theoretical framework are based on the variables of the FDI inflows in manufacturing sector, the trade, economic growth and employment. All data are gathered from MIDA and BNM website. This study is conducted starting from year 1980 until 2007 in yearly basis. The methodology used for the process of conducting the hypothesis of the study is regression analysis using a computer package called Statistical Package Social Science (SPSS). From the findings, the result shows that the trade, economic growth and employment have positive significant relationship with FDI inflows in manufacturing sector in Malaysia. However, further research is needed in order to confirm the relationship.