Determinants of Real GDP in Malaysia

Emilda Hashim*, Norimah Rambeli@ Ramli, Nurhanani Romli, Norasibah Abdul Jalil, Syazwani Mohd Bakri and Ng Woan Ron
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Emilda Hashim*: Economics Department, Faculty of Management and Economics, Sultan Idris Education University (UPSI), 35900, Tanjong Malim, Perak, Malaysia
Norimah Rambeli@ Ramli: Economics Department, Faculty of Management and Economics, Sultan Idris Education University (UPSI), 35900, Tanjong Malim, Perak, Malaysia
Nurhanani Romli: Economics Department, Faculty of Management and Economics, Sultan Idris Education University (UPSI), 35900, Tanjong Malim, Perak, Malaysia
Norasibah Abdul Jalil: Economics Department, Faculty of Management and Economics, Sultan Idris Education University (UPSI), 35900, Tanjong Malim, Perak, Malaysia
Syazwani Mohd Bakri: Economics Department, Faculty of Management and Economics, Sultan Idris Education University (UPSI), 35900, Tanjong Malim, Perak, Malaysia
Ng Woan Ron: Economics Department, Faculty of Management and Economics, Sultan Idris Education University (UPSI), 35900, Tanjong Malim, Perak, Malaysia

The Journal of Social Sciences Research, 2018, 97-103 Special Issue: 3

Abstract: Every country around the world has regarded its Gross Domestic Product (GDP) growth as extremely vital in order to pursue continuous development and advancement needed for its nation. Thus, this paper aims to examine the relationships between five macro variables, particularly, population, gross fixed capital formation, labor force participation, government expenditure on health and education, and real GDP in Malaysia. Accordingly, this study employs annual time series data from 1987 to 2016. The analysis is then explained in terms of two categories, economic and statistical criteria. The findings reveal that population and gross fixed capital formation are positively related to GDP. Therefore, they are important factors in explaining higher GDP. Meanwhile, the other factors do not essentially contribute to GDP growth and negatively related to each other, respectively. Based on the result, other variables should be added in the future so as responsible parties and authorities could have taken steps or implement strategies to ensure the stability economic growth are achieved. In addition, future study should touch on the econometric criteria such as OLS regression and Granger causality study into its discussion for more elaborate and in-depth findings.

Keywords: Gross domestic product (GDP); Gross fixed capital formation; Labor force participation; Government expenditure; Macro variables; Malaysia. (search for similar items in EconPapers)
Date: 2018
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