The impact of gross domestic product per capita (GDP), unemployment and exchange rates on foreign labour in Malaysia / Nur Ain Suhana Mohd Hafidzul

Mohd Hafidzul, Nur Ain Suhana (2019) The impact of gross domestic product per capita (GDP), unemployment and exchange rates on foreign labour in Malaysia / Nur Ain Suhana Mohd Hafidzul. [Student Project] (Unpublished)

Abstract

Since the last decade, the number of foreign labours in Malaysia has grown significantly. This
research explores the impact on Malaysia's foreign labour in 1986 to 2018 of the changes in
economic factors. Exchange rate, unemployment rate and Gross Domestic Product per capita
(GDP) are the economic factors included in this study. The Johansen Cointegration Test aims
to test the long-term and short-term effect on foreign labour in Malaysia. The chosen
independent variables have a significant impact on foreign labour inflows, excluding
unemployment, in Malaysia. This study also showed that unemployment in Malaysia has a
negative impact on foreign labour. However, Gross Domestic Product per capita (GDP) and
exchange rates have a positive effect on the inflow of foreign labour.

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