In summary, the empirical results in this study show that a long-run cointegration relationship exists between FDI and economic growth. A causal effect exists running from FDI to economic growth implying that FDI influences economic growth. As a result, this study has proposed the importance of the FDI as a paramount factor to accelerate the economic development of a country especially in Malaysia and could be taken as one of the key factors to stimulate the economy and for future economic development policy. This perhaps could enlighten the direction of future study on the essential relationship between FDI and economic growth while considering the possibilities of other factors that could together stimulate and sustain economic growth via FDI.