Factors affecting economic growth in Malaysia / Zulhelmi Firdaus Azmi and Tengku Nur Syafiqah Tengku Subri

• Main Authors: Azmi, Zulhelmi Firdaus, Tengku Subri, Tengku Nur Syafiqah
• Format: Student Project
• Language: English
• Published: Faculty of Business and Management 2019
• Subjects: Economics; Macroeconomics; Consumption. Demand (Economic theory); Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
• Online Access: http://ir.uitm.edu.my/id/eprint/23611/1/PPb_ZULHELMI%20FIRDAUS%20AZMI%20M%20BM%2019_5.pdf; http://ir.uitm.edu.my/id/eprint/23611/

Economic growth (GDP) plays an important roles to ensure a better position of economic and positive image of a country. Malaysia's economic growth in term of GDP (annual %) were declining in 1975, 1985, 1997 and 2009. The aim of this study is to examine the relationship between inflation, foreign direct investment (FDI), exchange rate, government expenditure, and export on economic growth of Malaysia by using the time series data yearly basis from 1970 to 2017. This study used secondary data to be run in the E-views software while the models that being used is Multiple Linear Regression to find the relationship between all independent variables and dependent variable. Based on the empirical result, government expenditure and export has a positive and significant effect while inflation and foreign direct investment (FDI) has positive but insignificant effect on economic growth. Meanwhile exchange rate shows significant but has a negative relationship with GDP. Therefore, this study might be useful for policy makers, investors and public.