Do government expenditure and population growth contributes to the Malaysia's economic growth? An empirical investigation / Noratifah Yusup

This study attempts to investigate the relationship between government expenditure and population growth toward the Malaysia's economic growth. Malaysia is one of the countries in ASEAN that have been through up and down of economic growth especially crisis economic in 1997 and 2008 that experience by many of the country in the world. Many researchers believe that government expenditure and population growth is one of the contributors to the economic growth. In case of Malaysia, the previous study have been come out with the mixed conclusion about it relationship and still open for debate. This study covers from 1971 - 2010 and before applying any econometric method, unit root test which is Augmented Dickey-Fuller will be done in order to get the stationary data. The relationship between the government expenditure and population growth seen have the insignificant relationship toward the economic growth whether in single regression or multiple regression. After all, it back to government itself on how to play their role and responsibility especially in corrected with more pleasant policies and actions.