Determinants of Gross Domestic Product (GDP) growth in Malaysia / Muhammad Bakhiddin Yahya

This study aims to determine the macroeconomic factors affecting Growth Domestic Product (GDP) growth in Malaysia. The four selected macroeconomic factors affecting GDP growth are employment to population ratio (EPR), foreign exchange rate (EXCR), interest rate spread (IRS) and inflation (CPI). Throughout the literature review process, several theories and previous studies which are relevant to the research objective have been reviewed. By referring to the theoretical framework, it can lead towards answering the research questions. The secondary data is gathered from World Bank Open Data, Department of Statistics Malaysia (DOSM) Official Portal and Macrotrends.net. Several analyses have been conducted, namely descriptive statistics analysis, correlation test analysis and multiple regression analysis on the yearly basis from 1991 to 2019. Through the analyses, the results can be concluded that EPR, IRS and CPI have negative relationship with GDP. Whereas, only EXCR has a positive relationship with GDP. Last but not least, this paper has contributed new evidence proven to the existing research studies and provides clearer view on Malaysia's GDP growth to the government bodies