Determinants of economic growth based on the selected macroeconomic factors: the case of Malaysia / Nur Hajma Mohamad Kutty

Economic growth is undeniable to be one of the most important aspects of the country which has to be monitored on a regular basis as it contributes towards the economic development of the country. Macroeconomic actors are among the actors that affecting the economic growth of a country. Therefore, the paper aims to find the relationship between macroeconomic actors and economic growth and also the significant determinants of economic growth of a single county which is Malaysia. "There are five macroeconomic actors that have been selected is study which are exports of goods and services, foreign direct investment, government final consumption expenditure, interest rate, and unemployment. The study was done for a period of 21 years starting from 1995 until 2015. This paper used time-series data where the data was derived from The World Bank accessed in 2017 using the World Development Indicators (WDI) which is a form of secondary data for the data collection. The methodology of conducting t}fi research was by the Ordinary Least Squares (OLS) method. Based on the research conducted, the result of this paper shows that exports of goods and services, foreiY1 direct investment, and government final consumption expenditure have a positive relationship with the economic growth of Malaysia. On the other hand, interest rate and unemployment were fotu1d to have a negative relationship with the economic growth of Malaysia. In addition, it was found that the three independent variables namely exports of goods and services, foreign direct investment, and government final consumption expenditure were the significant determinants of economic growth.