Factors that affect the export sector in Malaysia / Umi Ramlah Zainuri

Export sector has been one of the important part to determine the performance and economic growth of each country. In export, each country always concerned about the benefits on exporting in international trade and also to the country. However, the risk and reason on the possibility for the declining in export also should be concerned. Hence, a better understanding is needed to explore the changes in export and the factors that influenced the movement in Malaysia export. Thus, it is crucial to maximize the export sector in order to sustain the growth. As we know, Malaysian is one of the exporter in goods and services. Not only that, export also is one of the biggest contribution toward Malaysia economic growth. However, due to the economic crisis happened that knocks down many countries included Malaysia, it has resulted a drastic drop and volatile in demand for goods and services from main countries. Thus, the instability in economic has hurt the Malaysian exporting performance. Due to the issue, this study conducted to reveal whether import, inflation rate, foreign direct investment (FDI) and exchange rate are affecting the export sector in Malaysia. It is important to reveal the relationship between all the variables towards the export sector in Malaysia All the data taken from 1980 to 2015 and it is yearly basis. Time series data will be used to conduct this study. Methods used in this study are, statistical analysis, multicollinearity, normality, heterocedasticity, serial correlation and multiple linear regression analysis.