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Tuck Cheong Tang and Koi Nyen Wong
''Foreign Direct Investment and Electronics Exports: Exploratory Empirical Evidence from Malaysia's Top Five Electronics Exports''
( 2007, Vol. 6 No.14 )
The foreign direct investment (FDI) has contributed significantly to Malaysia's electronics exports as well as the growth and development of the electronics industry as a result of the export-oriented industrialization initiatives undertaken since 1970s. The aim of this study is to explore the causation between FDI and electronics exports by using Malaysia''s top five electronics exports by SITC (Standard International Trade Classification) product groups. The findings show a bi-directional causality between FDI and exports of semiconductor devices in the short run. The present study provides important policy implications towards the competitiveness of electronics exports and also promoting and targeting FDI inflows into key and priority growth in the electronics sub-sectors.
JEL: F2 - International Factor Movements and International Business: General
C2 - Single Equation Models; Single Variables: General
Manuscript Received : Mar 27 2007 Manuscript Accepted : Apr 09 2007

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