The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia

The study aims to estimate the impact of Foreign Direct Investment (FDI), labour, and external debt on economic growth in Indonesia and Malaysia over the period 1980-2016. The findings are expected to serve as a reference for macroeconomic policies in Indonesia and Malaysia. Employing an Autoregre...

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Main Authors:	Cahyadin, Malik, Tamat Sarmidi
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:	http://journalarticle.ukm.my/14076/ http://journalarticle.ukm.my/14076/ http://journalarticle.ukm.my/14076/1/jeko_53%281%29-14.pdf

id	ukm-14076
recordtype	eprints
spelling	ukm-140762020-01-31T22:33:44Z http://journalarticle.ukm.my/14076/ The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia Cahyadin, Malik Tamat Sarmidi, The study aims to estimate the impact of Foreign Direct Investment (FDI), labour, and external debt on economic growth in Indonesia and Malaysia over the period 1980-2016. The findings are expected to serve as a reference for macroeconomic policies in Indonesia and Malaysia. Employing an Autoregressive Distributed Lag Model (ARDL) and Error Correction Model (ECM), we find that FDI, labour force and external debt have a significant impact on the economic growth in the long- and short- run in both countries. Statistically, the estimated models are stable. Therefore, it is recommended that the authorities in Indonesia and Malaysia should concentrate on attracting more quality FDI inflows and properly manage external debts as well as high-skilled labour force, which are vital to economic growth. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14076/1/jeko_53%281%29-14.pdf Cahyadin, Malik and Tamat Sarmidi, (2019) The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia. Jurnal Ekonomi Malaysia, 53 (1). pp. 171-185. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2019.html
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The study aims to estimate the impact of Foreign Direct Investment (FDI), labour, and external debt on economic growth in Indonesia and Malaysia over the period 1980-2016. The findings are expected to serve as a reference for macroeconomic policies in Indonesia and Malaysia. Employing an Autoregressive Distributed Lag Model (ARDL) and Error Correction Model (ECM), we find that FDI, labour force and external debt have a significant impact on the economic growth in the long- and short- run in both countries. Statistically, the estimated models are stable. Therefore, it is recommended that the authorities in Indonesia and Malaysia should concentrate on attracting more quality FDI inflows and properly manage external debts as well as high-skilled labour force, which are vital to economic growth.
format	Article
author	Cahyadin, Malik Tamat Sarmidi,
spellingShingle	Cahyadin, Malik Tamat Sarmidi, The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia
author_facet	Cahyadin, Malik Tamat Sarmidi,
author_sort	Cahyadin, Malik
title	The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia
title_short	The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia
title_full	The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia
title_fullStr	The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia
title_full_unstemmed	The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia
title_sort	impact of foreign direct investment, labour force, and external debt on economic growth in indonesia and malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2019
url	http://journalarticle.ukm.my/14076/ http://journalarticle.ukm.my/14076/ http://journalarticle.ukm.my/14076/1/jeko_53%281%29-14.pdf
first_indexed	2023-09-18T20:06:17Z
last_indexed	2023-09-18T20:06:17Z
_version_	1777407180078579712

The impact of foreign direct investment, labour force, and external debt on economic growth in Indonesia and Malaysia

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