5.1 Introduction This chapter discusses the model specification, variable selection and the

The unemployment rate measures the percentage of the total work force that is unemployed and actively seeking employment during the previous month. Unemployment is termed as a major health of the economy and every country tries to reduce unemployment rate for sustainable growth. It is referred as the number of unemployed workers divided by the total civilian labour force. Every economy tries to ensure full employment in the country but there is the existence of natural rate of unemployment though nation tries hard to obtain full employment in the country.

Economic growth is an increase in the capacity of an economy to produce goods and services from one period of time to another. In simple terms, it refers to an increase in aggregate productivity.

Economic growth refers to the output of goods and services produced per capita in a nation over time. It is measured as the percent rate of increase in Real Gross Domestic Product(GDP) which is the value of total productions produced by an economy in

Economic growth is the increase in value and amount of goods and services that is produced by an economy for needs of a population over a period of time. The economic growth is measured according to the GDP adjusted for inflation; real gross domestic product. The GDP is essentially the final value of goods and services produced by a nation.

The objective of this paper is following: Firstly, descriptive statistics are provided with detailed values of selected variables and histogram and bar chart explained particular data in details; secondary, the relationships between variables are conducted by correlation for numerical data and cross-tabulation and chi-square for ordinal data; after that, hypothesis tests (one-sample t-test, two-sample independent t-test and F-test) are performed to deepen this study; and finally, regression analysis explores a liner model, based on results in previous sections. Further, it is noted that all calculations were performed by SPSS.

In narrow terms, FDI is simply all capital transferred between a firm and its new or established foreign affiliates. In its broadest sense, FDI represents competition: among workers, governments, firms, markets and even economic systems. (ibid)

Unemployment in the U.S. is determined by the unemployment rate. Unemployment rate is the calculation of unemployed people in the United States. The current unemployment rate in the U.S. is at a low of 4.6 percent. This is the lowest the unemployment rate has

FDI is understood as capital investments in real assets (production) in other countries, which participates in the management of the investor.

Unemployment happens when a person who is effectively looking for work is not able to look for some kind of employment. Unemployment is regularly utilized as wellbeing’s measure of the economy. The most as often as possible referred to measure of unemployment is the unemployment rate. This is the quantity of unemployed persons divided by the quantity of individuals in the work power. The unemployment rate is expressed as a percentage and is calculated as follows:

Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to work . The most common measure of unemployment is the unemployment rate. Method of calculating and presenting unemployment rate differs from one country to

"Human capital" is sometimes used synonymously with human resources, although human capital typically refers to a more narrow view (Boundless Business, 26 May 2016.). Human capital is the stock of competencies, knowledge, and social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value (Boundless Business, 26 May 2016.). It is an aggregate economic view of the human being acting within

The key feature of FDI is essentially that of control. This separates it from a traditional portfolio investment. When a business makes a foreign direct investment, it establishes either effective control or substantial influence over the decision-making process of the business or the operation.

The Human Resources which can be called as human capital, are viewed as the main and maybe one of the most important economic assets. An increase in the supply of labour (which can be

Human capital is one of the valuable strategic assets. It has enormous contribution in the field of inventions and innovation therefore, its importance cannot be overlooked in the knowledge base economy (Olayiwola, 2015). Human Capital is defined as the knowledge, experience, skill and expertise of firms’ employees (Edvinsson & Malone1997). Diez, Ochoa, Prieto & Santidrian (2010) define human capital as firm’s competencies and value creation efficiencies which are linked by employee’s knowledge, skill and intellectual capabilities. Sveiby (1997) describes human capital as ability to work in different dimensions that enhance value creation both in tangible and intangible assets. Bontis, 1998 conclude s that in other to find out paramount solutions of structured and unstructured problems

According to Kolodkin(2013), the FDI is major source which helps the countries which have limited of capital or funds for the government expense and receive finance aid from wealthier countries investor. For example, the united state is the world’s largest economy which are consist a lot of investors which have surplus fund to invest in companies and the project internationally. FDI is determined by the investor to invest into the countries based on the country situation and environment. For example, the government of Malaysia wants to attract the investor around the world to invest in Malaysia by giving a benefit such as tax reduced, percentage of share that they can buy.