Factors affecting gross domestic product: a study in Malaysia / Dang Fairuz Ramli

This study is undertaken to examine the relationship between foreign direct investment (FDI), unemployment, inflation and economic growth by using time series data on Malaysia ( for 19 years). The objective of this study is to identity whether these factors affect the economic growth in Malaysia. All the data used is in quarterly basis ranged from the year 1994 to year 2012. The method used is Multiple Linear Regression Analysis in order to determine the relationship between the three variables. Thus, the major findings of this study indicate that foreign direct investment is the only variables associated withn the economic growth in Malaysia. Meanwhile, unemployment and inflation had shown insignificant relationship with the economic growth. These findings suggest that the government should take into account that foreign direct investment had given a big impact in determining the economic growth in Malaysia and do take corrective actions in achieving vision 2020