Download here: http://jibe-net.com/journals/jibe/Vol_4_No_1_June_2016/6.pdf
This research aims to
study the relationship of export with four determinants, namely import,
inflation, foreign direct investment (FDI), and exchange rate. Sample years are
1975 to 2013. Ordinary least square (OLS) is used. Results revealed that import
has positive relationship with export. This implied that Malaysia import may be
an “assembly point exporter”. Electric and electrical (E&E), which is Malaysia
major export component has high possibly where inputs are imported, then
assembly and exported. Foreign exchange rate (domestic currency in term of
foreign) has positive relationship with export, thus validating Marshall
Learner hypothesis.
Inflation has negative relationship as higher aggregate
price increase cost of production and decreasing price competitiveness of
export. Foreign direct investment has an inverted-U curve relationship, which
give further insight into conflicting evidence of linear relationship between
export and FDI. Facilities provided to promote export may attract inflow of
foreign investment. However, if FDI is targeted to produce for domestic market,
it may not contribute to export growth.
Suggested by: Nurul Ainie Hamid (Statistician, DOSM)
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