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Journal of Economic Integration 2014 December;29(4) :657-675.
DOI: https://doi.org/10.11130/jei.2014.29.4.657
Foreign Labour on Malaysian Growth
Rahmah Ismail and 
Ferayuliani Yuliyusman 
Universiti Kebangsaan Malaysia, Selangor, Malaysia
Corresponding Author: Rahmah Ismail ,Email: rahis@ukm.edu.my
Copyright ©2014 Journal of Economic Integration
ABSTRACT
This paper is to examine the impact of foreign labour on Malaysian economic growth using panel data from three sectors: manufacturing, services, and construction for the period of 1990~2010. The short run and long run effects of foreign labour on output growth are analysed using the Autoregressive Distributed Lag approach. The study shows that the skilled and semi-skilled foreign labours have a positive and significant impact on the output growth in both the short run and the long run. However, the study finds that the unskilled foreign labour adversely affects output growth in both the short run and the long run.

JEL Classification
J01: Labor Economics: General
J08: Labor Economics Policies
Keywords: Skilled Foreign Labour | Semi-skilled Foreign Labour | Unskilled Foreign Labour | Economic Growth
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