The impact of inflation, foreign direct investment, and export on gross domestic product in Malaysia / Norsyahirah Imielda Mohd Shahrul Waat

Gross domestic product (GDP) is a national income that could contribute income to Malaysia.
Besides that, there is a current issue that will affect the growth of gross domestic product (GDP)
which is inflation. By existing this current issues, the researcher want to examine the impact of
inflation on gross domestic product (GDP) in Malaysia. In conducting this study, the researcher
took three economic factors which is inflation, foreign direct investment (FDI) and export in
Malaysia. The researcher collected the data from World Bank Data website with the period of
30 years from 1987 to 2016. In this study, the researcher used Times Series Data which
included Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) test to test whether the
variables have a unit root or not. After regressed the data, the researcher found out that there is
positive relationship between inflation and gross domestic product (GDP) and it is significant.
Besides that, the researcher found out that the foreign direct investment (FDI) and export have
a positive effect on gross domestic product (GDP) and significant in Malaysia. Based on the
result, it is suggested that the government must control the level of inflation, so that the
government can increase taxes and decreases the government spending.