Relationship Analysis of Malaysian Gross Domestic Product and Foreign Direct Investment Using Numerical Method with Optimization Approach

Abstract

The interaction between economic growth and foreign direct investment (FDI) is an ongoing fascination among researchers. The Lotka-Volterra model was utilized to describe the interaction of gross domestic product (GDP) and FDI respectively in Malaysia. In this study, the optimization method was used to evaluate the GDP and FDI relationship between 2009 to 2018 in Malaysia. The result demonstrates the existence of predator-prey relationship between the GDP and the FDI in Malaysia.  

 Keywords: foreign direct investment, gross domestic product, predator-prey model, Lotka-Volterra model, optimization