The determinants factor of economic growth : in the case of Malaysia / Eva Dessy Amung

This paper aim to investigate further the determinant factors that stimulate and effect the
economic growth in Malaysia. The determinant factors that has been studied in this paper are
government expenditure, foreign direct investment, export of goods and inflation from the year
of 1970 until 2017. The result of the data analysis shows that there is positive, significant
relationship between export and Foreign Direct Investment to Gross Domestic Product.
Meanwhile the government expenditure and inflation shows negative, insignificant relationship
with Gross Domestic Product. Johansen Co-integration test found that there exist a long run
relationship between Government Expenditure, Exports, Foreign Direct Investment and
Inflation with Gross Domestic Product. The Granger causality test shows the unidirectional
granger between Gross Domestic Product and Government Expenditure and also Government
Expenditure and Inflation.