Training, research and development, and spillover effects of foreign direct investment: A study on labour productivity in Malaysian manufacturing industry

More important findings to be reported is that the spillover effects of FDI appear to be quickly assimilated by workers in the Malaysian manufacturing industries through the "learning effect" as opposed to “technology effect” and that the fast pace is biased towards higher labour productivity. Findings from this study can help the FDI attraction policy to be carried out not only to increase Malaysian labour productivity, but most importantly to ensure the function of FDI transfer of knowledge to labour takes place, which must be based on Key Performance Indicators (KPIs).