Sustainable Economic Growth And Industry Insights: Nonlinear Interaction Analysis of GDP Vs FDI in Malaysia Using SCILAB Programming

Objective: To investigate the nonlinear relationship between Gross Domestic Product (GDP) and Foreign Direct Investment (FDI) in Malaysia, with the aim of providing insights into their bidirectional interactions. Theoretical Framework: The main concepts and theories that underpin the research are nonlinear regression techniques and economic growth models. These frameworks provide a solid basis on understanding the dynamic interaction between GDP and FDI in the context of Malaysia’s economic. Method: The methodology comprises writing Scilab coding to analyze nonlinear regression models. Malaysia's economic data on GDP and FDI were utilized as inputs for the analysis. The study involves modeling the dynamics between these indicators and evaluating their relationship over time. Results and Discussion: The results obtained revealed a significant nonlinear relationship between GDP and FDI in Malaysia. These results are contextualized within the theoretical framework, highlighting the bidirectional nature of the relationship. Possible discrepancies and limitations, including data constraints and assumptions of the nonlinear models, are also considered. Research Implications: This research offers valuable insights for policymakers, helping shape economic planning,and investment strategies. It highlights the importance of FDI in promoting sustainable economic growth and industrial development towards United Nation SDG 8 and SDG 9. Originality/Value: This study contributes by using nonlinear regression techniques and Scilab programming to analyze the complex relationship between GDP and FDI, an approach not widely applied to Malaysia's context. The relevance and value of this research are evidenced by its potential impact on economic policy and its contributions to a deeper understanding of Malaysia's economic development.