Macroeconomic factors influencing economic growth in Malaysia / Aish Azahraa Kharudin

Economic growth is defined as an increase or improvement in the inflation-adjusted market value of an economy's goods and services over time. Statisticians often use the percent rate of rising in the real gross domestic product, or real GDP, to measure such growth. Foreign direct investment, export, labour, and market capitalization are the tools that are being used to study the relationship with the dependent variable. To eliminate the distorting influence of inflation on the prices of products produced, growth is frequently assessed in real terms inflation-adjusted terms. This study aims to investigate what is the macroeconomic factors influencing economic growth in Malaysia and the data from The World Bank and Department of Statistics Malaysia Official Portal that cover the period from 1999 - 2020. This research used the Ordinary Least Square (OLS) regression method to determine the significance of the independent variables that are foreign direct investment (FDI), export, labour, and market capitalization that used real gross domestic product (GDP) as the dependent variable. Foreign direct investment, export, and labour have a significant relationship with real gross domestic product. Meanwhile, market capitalization has an insignificant relationship.
Keywords: Economic Growth, Real GDP, FDI, Export, Labour, Market Capitalization