The importance of agriculture to Malaysia Gross Domestic product: employment, export and GDP of agriculture / Jay Jikili Mudim

This paper aims to give information on how important the agricultural sector to the Malaysia economy. There are many factors that are contributing to our Malaysian GDP but since independence, we rely on agricultural activities in export and employment itself. So in the past, present and the future, agricultural sector could play a bigger role in saving our countries economy, and other country as well. The number from agricultural sector that has contributed for our GDP falls since the 1980's, but that doesn't mean that agricultural sector should be ignored. Agricultural sector is one of the important industries in the world. For Malaysia, it is the backbone of the economies, besides its contribution to our GDP; it gives employment opportunities as well. A simple regression such as Ordinary Least Square (OLS) should show the connection between GDP, and the three variables that is, Employment from Agriculture, Export from Agriculture and Agriculture contribution to GDP itself. When using this method (Ordinary Least Squares), it is important that the independent variables are separately being regress with the dependent variables as this will gives significant result for both of the data as production from agriculture is affecting export and production of agriculture also will determine the number of labour, but it is impossible to determine that the number of employment in agriculture will affect the number of export in agriculture. Most agriculture activity is focused on rural areas, where vast lands are required to increase more agriculture production. And to that, agriculture plays an important role to reduce poverty and develop rural areas.