The impact of macroeconomic indicator towards economic growth in Malaysia / Khairun Sofea Ahmad Daud

This paper examines the impact of macroeconomic indicators in Malaysia between 1967-
2015 through the application of Augumented Dickey-Fuller technique in testing the unit root
property and Granger Causality. The time series data is taken in this study consist of one
country which is Malaysia with 40 years study. Economic growth is commonly measured by
GDP because it is known as a perfect measure. The macroeconomic elements such as
government expenditure, unemployment, inflation, population, imports and exports in
Malaysia are estimated towards the performance of the Malaysian economic growth. As
Malaysia is known as developing country, there is need the potential measure to be taken. EViews
is used for estimation of data analysis to generate the results by using, Ordinary Least
Square, Unit Root Test, Johansen-Juselius Cointegration Analysis and Granger Causality Test
using VAR. The result of OLS in this research shows indicate the positive relationship of
government expenditure towards economic growth.