The purpose of this research paper is to investigate the factors affecting employee turnover in multi-national companies in Malaysia. The descriptive research design is used with the view of getting an expansive explanation about problems and factors affecting employee turnover in multi-national companies in the country. A quantitative research method has been used to quantify the problem by way of generating numerical data that can be transformed into usable statistics. To collect data, the study distributed a survey questionnaire to a total of 250 respondents. The findings showed that job dissatisfaction and work-life imbalance have a significant positive relationship to employee turnover. The study also found that training & development programs has a negative relationship with employee turnover. Lastly, the study has also found that, rewards system had either no, or less positive significant relationship with employee turnover in MNCs in Malaysia. The study has provided some recommendations on how to prevent the problem of high employee turnover in multi-national companies in Malaysia. Employees were found to have certain views about work-related matters, especially when it concerned their getting a balanced work-life and being consulted for the training & development programs to be more efficient and productive. The findings have also provided some implications that can contribute to guiding government or policy makers that will ensure a positive working environment for all employees.
{"title":"FACTORS AFFECTING EMPLOYEE TURNOVER IN MULTINATIONAL COMPANIES IN MALAYSIA","authors":"Md. Elias Hosen","doi":"10.32890/mmj2022.26.2","DOIUrl":"https://doi.org/10.32890/mmj2022.26.2","url":null,"abstract":"The purpose of this research paper is to investigate the factors affecting employee turnover in multi-national companies in Malaysia. The descriptive research design is used with the view of getting an expansive explanation about problems and factors affecting employee turnover in multi-national companies in the country. A quantitative research method has been used to quantify the problem by way of generating numerical data that can be transformed into usable statistics. To collect data, the study distributed a survey questionnaire to a total of 250 respondents. The findings showed that job dissatisfaction and work-life imbalance have a significant positive relationship to employee turnover. The study also found that training & development programs has a negative relationship with employee turnover. Lastly, the study has also found that, rewards system had either no, or less positive significant relationship with employee turnover in MNCs in Malaysia. The study has provided some recommendations on how to prevent the problem of high employee turnover in multi-national companies in Malaysia. Employees were found to have certain views about work-related matters, especially when it concerned their getting a balanced work-life and being consulted for the training & development programs to be more efficient and productive. The findings have also provided some implications that can contribute to guiding government or policy makers that will ensure a positive working environment for all employees.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46594816","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Health volatility due to the Covid-19 pandemic presented a new-fangled trial to the banking industry with a spillover effect of monetary policy volatility, which extremely affected the performance of the banking industry in Nigeria. It has become a matter of concern to assess monetary policy volatility and performance of the banking industry in Nigeria. The paper used annual time series data that spanned the period of 2008 to 2020. The paper employed Autoregressive Distributed Lag (ARDL) and Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) as its techniques of estimation. Based on the ARDL result, it was exposed that monetary policy volatility had a negative impact on the activities of the banking industry in Nigeria within the study time. In addition, according to the EGARCH test result, the paper generalized that monetary policy volatility had constantly been accompanied by a new volatility. Therefore, as a result of the universal financial predicament experienced in 2008, this caused a higher monetary policy volatility in 2020 in the face of Covid-19. The paper observed that a rise in monetary policy volatility led to a decline in the performance of the banking industry in Nigeria within the study period, and the current monetary policy volatility led to its uncertain volatility in the period ahead. The paper recommended based on the findings that banks through the Central Bank of Nigeria should employ tactical monetary policy strategies to reduce monetary policy volatility during the Covid-19 pandemic toward enhancing the performance of Nigeria’s banking industry.
{"title":"MONETARY POLICY VOLATILITY AND PERFORMANCE OF BANKING INDUSTRY IN NIGERIA","authors":"I. Sani, Yusuf Dansuma Lawal, W. Ome","doi":"10.32890/mmj2022.26.7","DOIUrl":"https://doi.org/10.32890/mmj2022.26.7","url":null,"abstract":"Health volatility due to the Covid-19 pandemic presented a new-fangled trial to the banking industry with a spillover effect of monetary policy volatility, which extremely affected the performance of the banking industry in Nigeria. It has become a matter of concern to assess monetary policy volatility and performance of the banking industry in Nigeria. The paper used annual time series data that spanned the period of 2008 to 2020. The paper employed Autoregressive Distributed Lag (ARDL) and Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) as its techniques of estimation. Based on the ARDL result, it was exposed that monetary policy volatility had a negative impact on the activities of the banking industry in Nigeria within the study time. In addition, according to the EGARCH test result, the paper generalized that monetary policy volatility had constantly been accompanied by a new volatility. Therefore, as a result of the universal financial predicament experienced in 2008, this caused a higher monetary policy volatility in 2020 in the face of Covid-19. The paper observed that a rise in monetary policy volatility led to a decline in the performance of the banking industry in Nigeria within the study period, and the current monetary policy volatility led to its uncertain volatility in the period ahead. The paper recommended based on the findings that banks through the Central Bank of Nigeria should employ tactical monetary policy strategies to reduce monetary policy volatility during the Covid-19 pandemic toward enhancing the performance of Nigeria’s banking industry.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46335585","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the impact of the National Economic Empowerment and Development Strategy (NEEDS) programme on poverty reduction in Sokoto State of North-western Nigeria, through the channels of the education policy. A total of 826 responses from 11 Local Government Areas (LGAs) were received through a structured questionnaire. The data was analysed using descriptive statistics and the binary logit regression model. It is found that the NEEDS has had a significant impact on the education of the participating households, which could lead to poverty reduction in the study area. The results also reveal that the NEEDS educational policy is likely to empower the youth to be self-reliant and productive in order to combat poverty in Sokoto State. It is suggested that the government should plan educational policies in the context of poverty reduction, by creating a conducive atmosphere for learning. Further, those who have benefited from similar programmes can be involved in raising awareness of future programmes. In addition, the government should enact a law on children’s education so that domestic work in the household and family businesses do not interfere with children’s education.
{"title":"ROLE OF THE NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY (NEEDS) EDUCATIONAL POLICY IN POVERTY REDUCTION IN SOKOTO STATE, NIGERIA","authors":"Haruna Sani Birnin-Kebbi, J. Soon, Y. Cheah","doi":"10.32890/mmj2022.26.8","DOIUrl":"https://doi.org/10.32890/mmj2022.26.8","url":null,"abstract":"This study examines the impact of the National Economic Empowerment and Development Strategy (NEEDS) programme on poverty reduction in Sokoto State of North-western Nigeria, through the channels of the education policy. A total of 826 responses from 11 Local Government Areas (LGAs) were received through a structured questionnaire. The data was analysed using descriptive statistics and the binary logit regression model. It is found that the NEEDS has had a significant impact on the education of the participating households, which could lead to poverty reduction in the study area. The results also reveal that the NEEDS educational policy is likely to empower the youth to be self-reliant and productive in order to combat poverty in Sokoto State. It is suggested that the government should plan educational policies in the context of poverty reduction, by creating a conducive atmosphere for learning. Further, those who have benefited from similar programmes can be involved in raising awareness of future programmes. In addition, the government should enact a law on children’s education so that domestic work in the household and family businesses do not interfere with children’s education.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41707974","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study has utilised the Seemingly Unrelated Regression (SUR) estimator method to explore the spillover effects of “technology” and “knowledge” from foreign direct investment (FDI) on Malaysian labour productivity. The study focus was on Malaysian medium-low technology and low-technology industries from 2000 to 2018. The findings showed that the presence of FDI spillovers as diffusion channels that increased labour productivity were greater through “technology effects” compared to “learning effects” for both types of industries. A cross-comparison of the results on technological spillovers between investor countries revealed that Singaporean and Japanese multinational corporations (MNCs) contributed the most significant technological effects in increasing Malaysian labour productivity, with the effects being most noticeable was in low-technology industries. These findings seem to suggest that the spillover effects of FDI are still concentrated in sectors with low-capacity technologies that commensurate with the required level of workforce capability. The negative relationship between “knowledge” spillovers and productivity found in this study seems to illustrate that the absorptive capacity of local workers to absorb high-skill-based technology from MNCs is still at a low level in both types of industries. This study has recommended that strategies and mechanisms should be devised accordingly to assist MNCs in their effort to improve knowledge and technology transfers, while simultaneously acknowledging the constraints of human factors, absorptive capacity, competition for resources or ethical dilemmas and cultural barriers.
{"title":"EFFECT OF FOREIGN DIRECT INVESTMENT ON LABOUR PRODUCTIVITY","authors":"Norhanishah Mohamad Yunus, Norehan Abdullah","doi":"10.32890/mmj2022.26.3","DOIUrl":"https://doi.org/10.32890/mmj2022.26.3","url":null,"abstract":"This study has utilised the Seemingly Unrelated Regression (SUR) estimator method to explore the spillover effects of “technology” and “knowledge” from foreign direct investment (FDI) on Malaysian labour productivity. The study focus was on Malaysian medium-low technology and low-technology industries from 2000 to 2018. The findings showed that the presence of FDI spillovers as diffusion channels that increased labour productivity were greater through “technology effects” compared to “learning effects” for both types of industries. A cross-comparison of the results on technological spillovers between investor countries revealed that Singaporean and Japanese multinational corporations (MNCs) contributed the most significant technological effects in increasing Malaysian labour productivity, with the effects being most noticeable was in low-technology industries. These findings seem to suggest that the spillover effects of FDI are still concentrated in sectors with low-capacity technologies that commensurate with the required level of workforce capability. The negative relationship between “knowledge” spillovers and productivity found in this study seems to illustrate that the absorptive capacity of local workers to absorb high-skill-based technology from MNCs is still at a low level in both types of industries. This study has recommended that strategies and mechanisms should be devised accordingly to assist MNCs in their effort to improve knowledge and technology transfers, while simultaneously acknowledging the constraints of human factors, absorptive capacity, competition for resources or ethical dilemmas and cultural barriers.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46104052","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bank size is one of the vital internal determinants of banking performance, although scholars hold contradictory views on bank size and its influence on performance. The aim is to examine the effect of bank size on quoted deposit money banks (DMBs) in the region of sub-Saharan Africa (SSA). The sample, collected over a period of nine years (2011-2019) included fifty listed commercial banks drawn from across the six sub-Saharan African countries, namely Nigeria, Ghana, South Africa, Zambia, Kenya, and Tanzania. The data were analyzed using a two-step system generalized method of moment (GMM). The finding revealed a significant and negative association between bank size and its financial performance. However, the smaller banks performed better when compared to their larger counterparts in the region. These findings seem to suggest that banks keep their capital level on the high side and minimize the rate of their non-performing loans in order to achieve more excellent banking performance within the region.
{"title":"BANK SIZE AND FINANCIAL PERFORMANCE IN SUB-SAHARAN AFRICA","authors":"Adamu Yahaya, Jibrin Nuhu Shagari, A. Mohammed","doi":"10.32890/mmj2022.26.1","DOIUrl":"https://doi.org/10.32890/mmj2022.26.1","url":null,"abstract":" \u0000Bank size is one of the vital internal determinants of banking performance, although scholars hold contradictory views on bank size and its influence on performance. The aim is to examine the effect of bank size on quoted deposit money banks (DMBs) in the region of sub-Saharan Africa (SSA). The sample, collected over a period of nine years (2011-2019) included fifty listed commercial banks drawn from across the six sub-Saharan African countries, namely Nigeria, Ghana, South Africa, Zambia, Kenya, and Tanzania. The data were analyzed using a two-step system generalized method of moment (GMM). The finding revealed a significant and negative association between bank size and its financial performance. However, the smaller banks performed better when compared to their larger counterparts in the region. These findings seem to suggest that banks keep their capital level on the high side and minimize the rate of their non-performing loans in order to achieve more excellent banking performance within the region.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44510404","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Active participation from the corporate sector in designing and implementing corporate social responsibility (CSR) activities is critical for company resilience and reliance. It has been suggested that companies need to integrate CSR activities with talent management strategies. However, the extant literature on CSR reporting has limited research focusing on talent management in CSR activities. Therefore, this study examines the extent of talent management disclosure (TMD) made by the top 100 Malaysian public-listed companies (PLCs). Particularly, this study examines the mediating effect of TMD on the corporate governance characteristics (CGC) and corporate financial performance (CFP) relationship. Generalised Linear Modelling (GLM) was used to analyse the cross-sectional data. The results indicate that female directors positively influence CFP, whereas independent directors negatively correlate with CFP. This study also finds that TMD has an insignificant moderating role in the CGC and CFP relationship. Nevertheless, the newly developed TMD provides a new perspective on talent management research. TMD is a new research avenue under-researched and needs more academic and business executive attention. Thus, this research invites academia and company management to revisit CSR activities by embedding talent management strategies.
{"title":"TALENT MANAGEMENT DISCLOSURE AS A MEDIATOR BETWEEN CORPORATE GOVERNANCE AND FINANCIAL PERFORMANCE","authors":"Noor Adwa Sulaiman, I. Mohd-Sabrun, R. Muhamad","doi":"10.32890/mmj2022.26.4","DOIUrl":"https://doi.org/10.32890/mmj2022.26.4","url":null,"abstract":"Active participation from the corporate sector in designing and implementing corporate social responsibility (CSR) activities is critical for company resilience and reliance. It has been suggested that companies need to integrate CSR activities with talent management strategies. However, the extant literature on CSR reporting has limited research focusing on talent management in CSR activities. Therefore, this study examines the extent of talent management disclosure (TMD) made by the top 100 Malaysian public-listed companies (PLCs). Particularly, this study examines the mediating effect of TMD on the corporate governance characteristics (CGC) and corporate financial performance (CFP) relationship. Generalised Linear Modelling (GLM) was used to analyse the cross-sectional data. The results indicate that female directors positively influence CFP, whereas independent directors negatively correlate with CFP. This study also finds that TMD has an insignificant moderating role in the CGC and CFP relationship. Nevertheless, the newly developed TMD provides a new perspective on talent management research. TMD is a new research avenue under-researched and needs more academic and business executive attention. Thus, this research invites academia and company management to revisit CSR activities by embedding talent management strategies.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-07-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45058499","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examined the effect of nominal exchange rate depreciation on the trade balance in 11 Asian-African countries between 1980 and 2019, and within the context of an exogenously determined single structural break. The countries had persistently experienced both nominal exchange rate depreciation and upward trends in trade in goods. Using the Chow test to frame the discussion, these countries were found to be facing structural changes associated with external factors such as the commodity price crisis in South Asia and the global financial crisis. The time-series autoregressive distributed lag (ARDL) approach with bounds test for cointegration and error-correction mechanism (ECM) was also applied for the analysis. The results of the study showed a long-term cointegration between the trade in goods and other variables included. Specifically, the nominal exchange rate depreciation positively affected the trade in goods in both the long-run and short-run in most of the Asian-African countries studied. There was a positive relationship between trade and foreign direct investment in the short-run, but this relationship mostly became insignificant in the long-run. Gross domestic product had a significant impact on trade performance in goods in both the long-run and short-run in all countries studied.
{"title":"THE EFFECT OF NOMINAL EXCHANGE RATE DEPRECIATION ON TRADE IN ELEVEN DEVELOPING COUNTRIES","authors":"Muhammad Riyadh Ghozali Lubis, N. Karim","doi":"10.32890/MMJ2021.25.2","DOIUrl":"https://doi.org/10.32890/MMJ2021.25.2","url":null,"abstract":"This study examined the effect of nominal exchange rate depreciation on the trade balance in 11 Asian-African countries between 1980 and 2019, and within the context of an exogenously determined single structural break. The countries had persistently experienced both nominal exchange rate depreciation and upward trends in trade in goods. Using the Chow test to frame the discussion, these countries were found to be facing structural changes associated with external factors such as the commodity price crisis in South Asia and the global financial crisis. The time-series autoregressive distributed lag (ARDL) approach with bounds test for cointegration and error-correction mechanism (ECM) was also applied for the analysis. The results of the study showed a long-term cointegration between the trade in goods and other variables included. Specifically, the nominal exchange rate depreciation positively affected the trade in goods in both the long-run and short-run in most of the Asian-African countries studied. There was a positive relationship between trade and foreign direct investment in the short-run, but this relationship mostly became insignificant in the long-run. Gross domestic product had a significant impact on trade performance in goods in both the long-run and short-run in all countries studied.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45601174","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study investigated the competitiveness index of the fourteen states in Malaysia. It also examined various aspects of competitiveness among states and vital elements that might influence competitiveness by utilizing a three-level hierarchical indicator system encompassing economic, social and environmental factors. An equally weighted index was applied to scrutinize the three dimensions. The index output was based on 24 indicators across six components. The critical components were economic performance, economic structure, marketization and openness, social aspects, domestic security and environmental quality. This study also examined the relationship between the components of competitiveness and economic growth for states in Malaysia by using the panel data estimation approach; a method which utilised data sets for fourteen states over a period extending from 2005 to 2016. Data were then analysed using a panel data regression model. Overall, findings showed that Selangor, where Kuala Lumpur the national capital was situated, was the most competitive state. In 2016, Kuala Lumpur was the best performer in terms of economic performance, social aspects and environmental quality. It was also found that domestic security and environmental quality were significant determinants of economic growth, which had enhanced competitiveness among states in Malaysia. A state’s performance according to the three dimensions varied greatly as there were different factors of specializations for each state. This study has proposed that each state in the federation possessed a significant economic performance, as well as substantial social and environmental development to ensure and sustain their respective state of competitiveness.
{"title":"CONSTRUCTING A COMPETITIVENESS INDEX FOR STATES IN MALAYSIA: A PANEL DATA ANALYSIS","authors":"Chee Ann Lim, K. T. Lonik, Radziah Adam","doi":"10.32890/MMJ2021.25.1","DOIUrl":"https://doi.org/10.32890/MMJ2021.25.1","url":null,"abstract":"This study investigated the competitiveness index of the fourteen states in Malaysia. It also examined various aspects of competitiveness among states and vital elements that might influence competitiveness by utilizing a three-level hierarchical indicator system encompassing economic, social and environmental factors. An equally weighted index was applied to scrutinize the three dimensions. The index output was based on 24 indicators across six components. The critical components were economic performance, economic structure, marketization and openness, social aspects, domestic security and environmental quality. This study also examined the relationship between the components of competitiveness and economic growth for states in Malaysia by using the panel data estimation approach; a method which utilised data sets for fourteen states over a period extending from 2005 to 2016. Data were then analysed using a panel data regression model. Overall, findings showed that Selangor, where Kuala Lumpur the national capital was situated, was the most competitive state. In 2016, Kuala Lumpur was the best performer in terms of economic performance, social aspects and environmental quality. It was also found that domestic security and environmental quality were significant determinants of economic growth, which had enhanced competitiveness among states in Malaysia. A state’s performance according to the three dimensions varied greatly as there were different factors of specializations for each state. This study has proposed that each state in the federation possessed a significant economic performance, as well as substantial social and environmental development to ensure and sustain their respective state of competitiveness.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45749835","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
The study examined the impact of foreign capital inflow on manufacturing sector growth in Nigeria using time series data from 1986 to 2019. The study specifically sought to examine the causal relationship between foreign capital inflows and the growth of the manufacturing sector in Nigeria in the long run The study employed the Autoregressive Distributed Lag (ARDL) estimation technique to account for the impact of foreign capital inflows on the manufacturing sector growth in Nigeria. The study utilized the Contribution of Manufacturing Sector to Gross Domestic Product (MGDP) as proxy for manufacturing sector growth. Manufacturing sector growth was the dependent variable while foreign direct investment (FDI), foreign portfolio investment (FPI) and foreign Aid (FOA) were the independent variables, and were regarded as proxies for foreign capital inflows. The study results revealed that foreign capital inflows through the FDI had a significant positive impact on contributions of the manufacturing sector to gross domestic product (GDP). The study also revealed that foreign capital inflows through the FPI had a significant positive impact on contributions of the manufacturing sector to the GDP. The study further revealed that foreign capital inflows through the FOA had a significant positive impact on contributions of the manufacturing sector to the GDP. Based on these findings, the study has recommended that the Nigerian government should promote foreign capital inflows through the FDI in order to achieve the desired level of manufacturing sector growth in the country’s economy in the long run. The government should also encourage foreign capital inflows through the FPI in order to attain the desired level of manufacturing sector growth in the Nigerian economy. Finally, the government should also support foreign capital inflows through the FOA in order to attain the desired level of manufacturing sector growth in the Nigerian economy in the long run.
{"title":"FOREIGN CAPITAL INFLOWS AND MANUFACTURING SECTOR GROWTH IN NIGERIA","authors":"I. Sani, Ajengbe Abidemi Samuel, W. Ome","doi":"10.32890//MMJ2021.25.10","DOIUrl":"https://doi.org/10.32890//MMJ2021.25.10","url":null,"abstract":"The study examined the impact of foreign capital inflow on manufacturing sector growth in Nigeria using time series data from 1986 to 2019. The study specifically sought to examine the causal relationship between foreign capital inflows and the growth of the manufacturing sector in Nigeria in the long run The study employed the Autoregressive Distributed Lag (ARDL) estimation technique to account for the impact of foreign capital inflows on the manufacturing sector growth in Nigeria. The study utilized the Contribution of Manufacturing Sector to Gross Domestic Product (MGDP) as proxy for manufacturing sector growth. Manufacturing sector growth was the dependent variable while foreign direct investment (FDI), foreign portfolio investment (FPI) and foreign Aid (FOA) were the independent variables, and were regarded as proxies for foreign capital inflows. The study results revealed that foreign capital inflows through the FDI had a significant positive impact on contributions of the manufacturing sector to gross domestic product (GDP). The study also revealed that foreign capital inflows through the FPI had a significant positive impact on contributions of the manufacturing sector to the GDP. The study further revealed that foreign capital inflows through the FOA had a significant positive impact on contributions of the manufacturing sector to the GDP. Based on these findings, the study has recommended that the Nigerian government should promote foreign capital inflows through the FDI in order to achieve the desired level of manufacturing sector growth in the country’s economy in the long run. The government should also encourage foreign capital inflows through the FPI in order to attain the desired level of manufacturing sector growth in the Nigerian economy. Finally, the government should also support foreign capital inflows through the FOA in order to attain the desired level of manufacturing sector growth in the Nigerian economy in the long run.","PeriodicalId":34347,"journal":{"name":"Malaysian Management Journal","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49556666","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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