Keeping unemployment rate low is one of the crucial economics goal. Keynesian
economists believe that expansionary fiscal policy play huge role in reducing
unemployment. Thus, this study investigates on the effect of increase in government
spending towards unemployment rate in Malaysia. Using data of 37 years (1982-
2017), Government Expenditure (EXP), Foreign Direct Investment (FDI) and Balance
of Trade (TRB) is tested against Unemployment Rate (UNR) in a multi-linear
regression analysis by using OLS. It found a negative, insignificant relationship
between UNR and GE, negative and significant relationship between UNR and FDI,
and positve, significant relationship between UNR and TRB. By using Granger
Causality test, it is also found that TRB Granger Cause GE and FDI Granger Cause
GE.
| Item Type: | Student Project |
|---|---|
| Creators: | Creators Email / ID Num. Samsolnizam, Syazwani 2016634362 |
| Subjects: | H Social Sciences > HB Economic Theory. Demography > Income distribution. Distributive justice H Social Sciences > HG Finance > Investment, capital formation, speculation > Foreign investments. Country risk H Social Sciences > HJ Public Finance > Income and expenditure. Budget H Social Sciences > HJ Public Finance > Expenditures. Government spending |
| Divisions: | Universiti Teknologi MARA, Sabah > Kota Kinabalu Campus > Faculty of Business and Management |
| Programme: | Bachelor of Business Administration (Hons) Business Economics |
| Keywords: | Government Expenditure (EXP), Foreign Direct Investment (FDI), Unemployment |
| Date: | June 2019 |
| URI: | https://ir.uitm.edu.my/id/eprint/42235 |
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42235.pdf
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- Bilik Koleksi Akses Terhad | Kampus Kota Kinabalu, Sabah
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