Abstract
Theories have been put forth on the impact of globalization on wages, employment and productivity levels, of which empirical evidence provide mixed results on its effects. The existing empirical studies have largely been either concentrating on developed economies or on developing countries as a group, and rely mainly on correlation and standard econometric technique of regression. This paper, on the other hand, investigates the link between globalization and the Malaysian labor market by applying the autoregressive distributed lag approach, a relatively new time-series technique to the analysis. The findings indicate that globalization does not significantly affect the labor variables in the long run. In fact, inflow of foreign direct investments is an ?adjusting? variable that reacts to changes in productivity and output growth. Thus for Malaysia, the main focus should be on upgrading the skills and productivity of workers, rather than on globalization, to improve its overall economic growth.
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Article Details
- Year: 2010
- Volume: 31
- Issue: 1
- Pages: 17 - 40
- Accepted: 18.01.2010
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DOI:
https://doi.org/10.5281/zenodo.21095773 -
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How to Cite?
Selamah Abdullah Yusof (2010). Globalization and the Malaysian Labor Market: An Empirical Investigation. Journal of Economic Cooperation and Development, 31(1), 17-40. https://doi.org/10.5281/zenodo.21095773
