The impact of macroeconomic factors on economic growth: an analysis in Malaysia / Mohd Hafifi Mohd Nor

The changes in economic growth in Malaysia have attracted attention to be the most studied construct in finance. Economic growth is one of the indicators of the economy stability. Therefore, this study tries to determine the factors that affecting economic in Malaysia. The objectives of this study are to measure the factors that affect economic growth in Malaysia and to identify the most factor influence between factors listed. This paper analyzes data form 1976 until 2015 by using Ordinary Least Square (OLS) in Malaysia respectively. Foreign direct investment, consumption and nominal exchange rate as macroeconomic variables that affected economic growth. At the end of the research study, only FDI and CONS show strong significant relationship towards economic growth. Lastly, NER shows the most affected to economic growth when NER change 1 percent.