The determinants of economic growth in Malaysia (1980-2015) / Rosnani Khazali

The purpose of conduct this study is to investigate the relationship between trade openness, foreign direct investment and government expenditure towards economic growth in Malaysia. It covers the period 1980 until 2015, a period of 35 years which consist of 34 data observation. Simply, those determinants are considered as indicators for economic growth in Malaysia and it has been investigated yearly. Trade openness, foreign direct investment and government expenditure were use as independent variable. All the variables seem to have relationship with economic growth. Unit root test and diagnostic test were being used to test whether it is stationary or non-stationary. The analyses are conducted using multiple linear regressions to get the results. The multiple linear regression results show that trade openness and government expenditure show a positive significant relationship whereas the foreign direct investment shows an insignificant positive relationship thus it means that trade openness is most influence the economic growth performance in Malaysia.