Measuring the relationship between economic growth and economic variables: a study in Asia pacific / Tengku Siti Hasmah Tengku Ngah

This paper examines the relationship between economic growth and four economic variables; inflation, unemployment, foreign direct investment and export. Using panel data, the data on 8 countries of Asia Pacific has been selected within 13 years starting from 2000 until 2012. Even though many studies has been discussing on their relationship, no definite result has been taken in determining which variables influence economic growth the most. By applying POLS, the findings clearly suggest that there are positive relationship between economic growth and inflation, foreign direct investment and export; and this implies a significant relationship between them.