Determinants of economic growth in Malaysia / Nur Mazidah Ahmad

Gross Domestic Product (GDP) per capita is used to measure the country’s economic growth.
This study tend to examine to examine the relationship of some chosen determinants (household
consumption, foreign direct investment, inflation, population and trade) with economic growth in
Malaysia. This research conducted by using time series data from year 1966 to 2016. Overall, the
result shows that household consumption and trade give a significant impact towards the
development of economy where household consumption give positive effect, while trade give
negative effect towards economic growth. It is also shown that foreign direct investment,
inflation and population does not have significant impact with economic growth. Besides that,
64.45% of the result of independent variables can be explained by the changes in economic
growth. The remaining 35.55% can be explained by other variables.