The impact of macroeconomic variables on economic growth: evidence from Malaysia / Alya Farzana Redzuan

Over the last thirty years, the Malaysia economy growth has changed and improved significantly. The Malaysia's economy has evolved into a leading for economies among ASEAN countries. Several studies have proposed that macroeconomic variables have a significant impact on economic growth, while others have found an inconclusive relationship at best. The impact of macroeconomic variables on Malaysian economic growth is explored in this study, which uses GDP growth as a proxy for economic growth. Furthermore, the macroeconomic variables of inflation (INF), exchange rate (EXR), and Foreign Direct Investment (F DI) are chosen to reflect the 1980-2021 period. To examine the data, correlation and multiple regression analysis are used. GDP is statistically significant with all variables except the inflation rate, according to correlation analysis. GDP is chosen as the dependent variable in regression analysis, with EXR, IR, and FDI as the independent variables. The study examined secondary variables from 1990 to 2021 using an OLS multiple regression model. The analysis will explain the performance of Malaysia's economy. This study will be guided by information for the empirical literature on policymakers, regulators. and the investment community.