Effect of government expenditure towards economics growth in Malaysia / Muhammad Noorhakim Maula Ahmad Ghazi

For decades, the connection between government expenditures and economic growth
has been explored, however has not yet been explicitly defined. In the case of Malaysia,
this paper provides further evidence regarding the relationship between government
expenditure and economic growth. For the last 47 years we used the OLS methods to
estimate the fixed effects of government spending on economic growth. This research
is performed using data from the time series for the duration 1970 to 2018. To
concentrate on the success of economic growth policies and prevent any distortion from
unproductive spending, this analysis uses only government development spending
rather than government consumption. The test runs on the transportation, military and
defense, education, and general administration areas. The results show that only
the education areas are important towards economic growth. These results that offer the
Malaysian policymakers some outlook of the policy consequences of leveraging the
impact of government spending on economic growth.