Contribution of innovation in agriculture sector towards Malaysia economy / Naziana Mat Nawi

The study will focus on the 8 years data duration which started from 2005 until 2012. The time duration gathered short because Malaysia only launched the restructured Ministry of Science, Technology and Innovation (MOSTI) in April 2004. Thus, the budgets allocated for innovation purpose are relevant to be collected since 2005. In the process of data gathering, it has been collected from Ministry of Agriculture and Agro-Based Industry (MOA), Ministry of Science, Technology and Innovation (MOSTI), Economic Planning Unit (EPU), Department of Statistic, Central Bank of Malaysia and Ministry of International Trade and Industry (MITI) and also Malaysia Treasury. The Multiple Linear Regression Analysis is used to estimate the functions related between independent variable (GDP, Export and Employment) and dependent variable (Innovation in Agriculture).
Based on the findings and result of analysis, the researcher can conclude that innovation in agriculture has a significant relationship between Export and Employment while innovation in agriculture has no significant relationship between GDP. Besides that, this study has achieved researcher objectives to analyze the relationship between innovation in agriculture and its impact to Gross Domestic Product which is less significant due to economic factor. Second objectives also already be identified to elaborate the effects of innovation in agriculture towards Malaysia’s export which is significant to the economic theory and show the positive relationship. In addition, the last objectives also answered which to determine the linkages of innovation in agriculture and its significant contribution towards employment rate in agriculture sector.