The effect of trade liberalization on economic growth of Malaysia / Izzah Izyan Jaafarudin

This paper presents the impact of trade liberalization on economic growth of Malaysia. Where the trade policy practices the free trade and removing the tariff and non tariff barriers between countries. By investigate the causal relationship between the variable that are significant towards economic growth of Malaysia. The data collected from 1960 until 2009 to measure the economic performances. This period are divided into pre liberalization (1960-1978) and post liberalization (1979-2009). The method of Ordinary Least Square (OLS), ADF test are use to test to the data. Furthermore, Chow Breakpoint test are use to identify the structural changes of country. Based on the result, there are significant and positive relationship between trade liberalization and economic growth.