Macroeconomic factors and GDP growth in China / Wan Noor Farisha Aqilah Mat Jais

GDP growth has always been considered an important issue that many researchers have addressed. Inconsistent GDP growth within a country will increase the prevalence of poverty while also stifling advances in health, education, crime, and eventually, economic growth. The factors that contribute to GDP growth are relatively important in preventing socio-political instability. The purpose of this research is to find out what factors can influence China's GDP growth. The research is performed using secondary data from economic indicators which are foreign direct investment (FDI), unemployment rate, and government spending. The research sample consisted of data on China's GDP growth from 1990 until 2020. The results identify that among the factors, foreign direct Investment has a positive impact on GDP growth. Meanwhile, government spending has a negative impact on GDP growth. However, foreign direct investment and government spending are the only variables that contribute significantly to China's GDP growth. The unemployment rate negatively impacts GDP growth, and it is not a significant factor towards GDP growth in China. Based on the result, it is suggested by maintaining the stability of foreign direct investment and increasing government spending can help the GDP growth in China.