Zaidi, Mohd Azlan Shah and Abdul Karim, Zulkefly and Mokhtar, Aminudin
Pelaburan langsung asing (PLA) dan pertumbuhan ekonomi: Bukti empirikal.
Analisis, 10 (2).
The main objective of this paper is to empirically examine the long term relationship and causality between foreign direct investment (FDI) and economic growth of selected developing and developed countries for the period of 1970 ti 2000. The Johansen (1988) cointegrating techniques are applied to investigate the long term relationship between techniques are applied to investigate the long term relationship between the two variables while vector error correction mechanism (VECM) and Granger (1969) causality test are used to determine their long term as well as short term causal interactions. The results show that the causal relationship runs in either or both directions. In most of the selected developing countries,economic growth leads the growth of FDI while in most of the selected countries except for the USA and the United Kingdom the cusal relationships are reversed.
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