Macroeconomic determinants of Foreign Labour Force in Malaysia / Muhammad Fariszuan Abd Razak

• Main Author: Abd Razak, Muhammad Fariszuan
• Format: Student Project
• Language: English
• Published: 2020
• Subjects: Macroeconomics; Immigrant labor. Foreign workers
• Online Access: https://ir.uitm.edu.my/id/eprint/49580/1/49580.pdf; https://ir.uitm.edu.my/id/eprint/49580/

This research aims to investigate the macroeconomic determinants affecting the Foreign Labour Force (FL) in Malaysia. The four selected macroeconomic determinants are unemployment rate (UNEMP), gross domestic product (GDP), exchange rate (EXR), and labour productivity (LPY). The theoretical framework has led the research towards answering the research questions. The secondary data have been gathered through the World Bank's World Development Indicators, Statista Logo, and Quandl. This research covered 18 years which commencing from the year 2001 to 2018 with several test such as descriptive analysis, normality analysis, correlation analysis, autocorrelation test, heteroscedasticity test, test on functional form, and multiple linear regression. The multiple linear regression tests have been undertaken, and the analyses of the findings have been discussed through regression analyses. Through the analysis, GDP and LPY show a strong positive relationship with FL while UNEMP and EXR show the negative relationship with FL, respectively. From this finding, it can benefit towards future researchers which reference sources will help them in the progress because they would have the information from this study and use it in their future research to further support their views and judgements. Also, the finding of this study will benefit to the government if there any macroeconomic factor affects the inflow of foreign labour in Malaysia. This research also includes a more thorough discussion of how exchange rates can directly influence the inflow of foreign labour into Malaysia. Besides, it can provide guidance and reference to local and foreign policymakers when considering the types of policy to be implemented depending on the needs of their country. Business or private sectors could consider the decision whether they will hire foreign workers or not by finding of this research. It can provide them with guidance