Foreign direct investment and local input linkages in Malaysia

This article examines variations in local input linkages in foreign transnational corporations in Malaysia. It employs a unique data set, covering inward investors in the electrical and electronics industry, and analyzes the determinants of variations in local input uses. The article demonstrates that policy initiatives that target particular outcomes, such as stimulating exports or technology transfer, will result in greater beneficial impact on the host country economy than more generic subsidies. (DSE/DÜI)