Assessing the Relationships between Private Investment, Employment and Output in the Manufacturing Sector in Malaysia

Abstract

The purpose of this study was to evaluate the influences of private investment inflows on employment and output across manufacturing industries. The study covered a time period from 1980 to 2010 for the variable of private investment inflows and from 1981 to 2011 for the variables of employment and output. There were seven cross-section units to represent seven categories of industries for the analysis. Using a regression technique, the estimated coefficients private investment flows had statistically significant influences on the levels of employment and output. Using Pearson Correlation technique, there was a positive correlation between employment and output. Private investments are encouraged to accelerate output growth and employment enhancement in the sector.