The impacts of government expenditure on economic growth in Malaysia / Muhammad Izmeer Sakdon

This study is to investigate the impacts of government expenditure components on economic growth in Malaysia. The issues of this study is to know and get the clear picture in response to the financial crisis and its impact towards the economic growth when the government has increased government expenditure markedly in order to stimulate economic growth. Besides that, the purpose of this study is to examine whether government expenditure actually promotes economic growth. The research study observation is over 30 year period from 1986 to 2015. A total of 30 years of observations for each variable were taken into consideration for this study by using time series data for the country of Malaysia. The data has been analysed by using Eviews 8.0 to do descriptive, unit root test, multiple regression, correlation analysis and test on assumption. The findings shows that all the variables are stationary where all the significant level is lower than 5%. Thus, it concludes that at least one of independent variables is affects the dependent variable. The T-test also shows that only variable of defense has no positive significant relationship with the economic growth while others variable which are education, health and infrastructure has a positive significant relationship with the economic growth.