Publication: Investigating the factors affecting economic growth in Malaysia
Date
2025-03-04
Authors
Muhammad Firdaus Muhammad Ridzuan Tan
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Abstract
This research aims to investigate the factors affecting economic growth in Malaysia. The dependent variable chosen is economic growth while the independent variables chosen are population growth, foreign direct investment, renewable energy consumption and inflation. All of the data are procured from World Development Indicator (WDI) of which the data is from the year 1990 to 2019 (n=30) and the data are Malaysian data. The data are analysed using correlation analysis and multiple regression analysis in order to investigate the relationship and impact of the independent variables with the dependent variable. Based on the result, it is found that all of the independent variables have positive relationship with the dependent variable. Whereas, population growth and renewable energy consumption has no significant impact on economic growth while foreign direct investment and inflation has a significant impact on economic growth. Based on the results, Malaysian authorities are recommended to nurture a conducive environment in the political landscape in order to encourage political stability to attract FDI and boost economic growth. Last but not least, Malaysian central bank is suggested to monitor the policies implemented closely while adapting it to the inflation level based on the economic cycle.
Keywords: Factors, Economic growth, Malaysia, political stability, inflation
Description
2024