Effect of the Malaysian capital market development on the economic growth / Faizatul Akma Daud

This study analyses the factor of financial market development that influence of' economic growth with specific proxy on the Malaysian economy. Financial market can be divided by two categorized which is capital market and banking development. These researches only focus on the capital market development towards the economic growth in Malaysia. Capital market has been identified as an institution that contributes to the socio economic growth. By using the multiple linear regression which is OLS model the annually time series data over the period from 1981 until 2015. The data collected from World Data Bank is for sample and data analysis to ensure that the basic assumptions of regression analysis were verified. This study assess for investigate the relationship between the gross domestic product (GDP) as the dependent variable by economic growth in the modal and capital market development which is market capitalization (proxy as stock market) of listed domestic companies in Bursa Malaysia (MKT), foreign direct investment (FDI), gross capital formation (GFI), stock traded total value (STV) and inflation (INF). The findings indicate that economic growth is positively significant with MKT, FDI and STV. While, for GFI have negatively significant with GDP. Even though, there are only INF has negatively insignificant towards GDP. In this study we examined the relationship of gross domestic product on the capital market development because they tend to be associated with economic. This research will be discussing within each chapter which is to solve the problem statement, achieve the research objective(s) and answer the research question(s) of this study.