The impact of consumption on economic growth: evidence from Asean countries / Haziqah Husaifuna

Economic growth is the measurement of the increasing in production of goods and services over a specific period. It is also included the increasing in capital goods, labour force, technology and human capital. Consumption is one of the theories applied in determining the economic growth. Consumption can be defined as how the consumers spend their income. Some of this income is spent on buying the products and services they need. According to the economists, they said that consumption is the main concept to determine the economic growth. So, is that true consumption is the major concept in the economic growth? This study is using a panel data sample of 10 ASEAN countries covering the periods of 2008 until 2018 (11 years). The dependent variable for this study is economic growth for the ASEAN countries (GDP). While the independent variables are household income, personal income tax rate, business investment, prices of goods & services, national saving and lastly national spending. The statistical methods use in this study are descriptive analysis, correlation analysis and regression analysis. At the end of the study, the expectation from this study is independent variables will give impact towards the economic growth in the ASEAN countries. At last, it has been proven that the household income, personal income tax rate, business investment and national saving give the positive effects while the other two (prices of goods & services and national spending) give negative effects towards the economic growth.