Bilateral Export Trade, Outward and Inward FDI: A Dynamic Gravity Model Approach Using Sectoral Data from Malaysia

Siew Yean Tham, Soo Khoon Goh, Koi Nyen Wong, Ahmad Fadhli

Research output: Contribution to journalArticle

Abstract

In light of a change in the foreign direct investment (FDI) landscape such as the rapid growth of outward FDI from Malaysia since 2007, this article ascertains the possible impact of inward and outward FDI on Malaysia’s bilateral export trade at the sectoral level, using a dynamic gravity approach. The findings reveal that both inward and outward FDI are complementary to bilateral export trade in the services, mining, and manufacturing sectors. Furthermore, the distance elasticity and the real effective exchange rate have a different negative impact on different sectors. Overall, the sectoral bilateral exports could not insulate against external events.

Original languageEnglish
Pages (from-to)1-18
Number of pages18
JournalEmerging Markets Finance and Trade
DOIs
Publication statusAccepted/In press - 5 Jul 2018

Fingerprint

Malaysia
Gravity model
Bilateral
Foreign direct investment
Outward foreign direct investment
Elasticity
Gravity
Manufacturing sector
Real effective exchange rate

ASJC Scopus subject areas

  • Finance
  • Economics, Econometrics and Finance(all)

Cite this

Bilateral Export Trade, Outward and Inward FDI : A Dynamic Gravity Model Approach Using Sectoral Data from Malaysia. / Tham, Siew Yean; Khoon Goh, Soo; Wong, Koi Nyen; Fadhli, Ahmad.

In: Emerging Markets Finance and Trade, 05.07.2018, p. 1-18.

Research output: Contribution to journalArticle

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