IDEAS home Printed from https://ideas.repec.org/a/arp/tjssrr/2018p97-103.html
   My bibliography  Save this article

Determinants of Real GDP in Malaysia

Author

Listed:
  • 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)

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.

Suggested Citation

  • Emilda Hashim* & Norimah Rambeli@ Ramli & Nurhanani Romli & Norasibah Abdul Jalil & Syazwani Mohd Bakri & Ng Woan Ron, 2018. "Determinants of Real GDP in Malaysia," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 97-103:3.
    • Handle: RePEc:arp:tjssrr:2018:p:97-103
    as

    Download full text from publisher

    File URL: https://www.arpgweb.com/pdf-files/spi3.15.97.103.pdf
    Download Restriction: no
    File URL: https://www.arpgweb.com/journal/7/special_issue/12-2018/3/4
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Emmanuel Nkoa ONGO & Andrew Wujung VUKENKENG, 2014. "Does gross capital formation matter for economic growth in the CEMAC sub-region?," EuroEconomica, Danubius University of Galati, issue 2(33), pages 79-88, November.
    2. Lee, Jong-Wha & Hong, Kiseok, 2012. "Economic growth in Asia: Determinants and prospects," Japan and the World Economy, Elsevier, vol. 24(2), pages 101-113.
    3. Rabiul Islam & Ahmad Bashawir Abdul Ghani & Bobby Kusuma & Belinda Barbara Theseira, 2016. "Education and Human Capital Effect on Malaysian Economic Growth," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1722-1728.
    4. Nikolaos Dritsakis & Antonios Adamopoulos, 2001. "Financial development and economic growth in Greece: an empirical investigation with Granger causality analysis," International Economic Journal, Taylor & Francis Journals, vol. 18(4), pages 547-559.
    5. Edward L. Glaeser & Gary S. Becker & Kevin M. Murphy, 1999. "Population and Economic Growth," American Economic Review, American Economic Association, vol. 89(2), pages 145-149, May.
    6. Nikolaos Dritsakis & Erotokritos Varelas & Antonios Adamopoulos, 2006. "The Main Determinants of Economic Growth : An Empirical Investigation with Granger Causality Analysis for Greece," European Research Studies Journal, European Research Studies Journal, vol. 0(3-4), pages 47-58.
    7. Irena Szarowská, 2011. "Relationship between government spending and economic growth in the Czech Republic," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 59(7), pages 415-422.
    8. Fatima Boussalem & Zina Boussalem & Abdelaziz Taiba, 2014. "The Relationship between public spending on health and economic growth in Algeria: Testing for Cointegration and Causality," Proceedings of International Academic Conferences 0101004, International Institute of Social and Economic Sciences.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esa Mangeloja, 2004. "Interrelationship of economic growth and regional religious properties," ERSA conference papers ersa04p94, European Regional Science Association.
    2. Chen, Xi & Funke, Michael, 2013. "The dynamics of catch-up and skill and technology upgrading in China," Journal of Macroeconomics, Elsevier, vol. 38(PB), pages 465-480.
    3. Molinari, Benedetto & Rodríguez, Jesús & Torres, José L., 2013. "Growth and technological progress in selected Pacific countries," Japan and the World Economy, Elsevier, vol. 28(C), pages 60-71.
    4. Ramona Dumitriu & Razvan Stefanescu, 2015. "The Relationship Between Romanian Exports And Economic Growth After The Adhesion To European Union," Risk in Contemporary Economy, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, pages 17-26.
    5. Dean M. Hanink, 2010. "Perspectives on Regional Change: A Review Essay on Handbook of Regional Growth and Development Theories," Growth and Change, Wiley Blackwell, vol. 41(1), pages 3-27, March.
    6. Chebli Mongi & Kais Saidi, 2024. "The Impact of Corruption, Government Effectiveness, FDI, and GFC on Economic Growth: New Evidence from Global Panel of 48 Middle-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10696-10721, September.
    7. Elgin, Ceyhun & Tumen, Semih, 2012. "Can sustained economic growth and declining population coexist?," Economic Modelling, Elsevier, vol. 29(5), pages 1899-1908.
    8. Ali Yassin Sheikh Ali & Mohamed Saney Dalmar & Ali Abdulkadir Ali, 2018. "Effects of Foreign Debt and Foreign Aid on Economic Growth in Somalia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 10(11), pages 1-95, November.
    9. Dennis Tao Yang & Junsen Zhang & Shaojie Zhou, 2012. "Why Are Saving Rates So High in China?," NBER Chapters, in: Capitalizing China, pages 249-278, National Bureau of Economic Research, Inc.
    10. Cristian Dragos Turcan & Viorel - Costin Banta & Sabin – Alexandru Babeanu, 2021. "Initiation And Planning Of An Information System. A Case Study," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 1(49), pages 43-48, August.
    11. Ashok Babubudjnauth & Boopen Seetanah, 2021. "An empirical analysis of the impacts of real exchange rate on GDP, manufacturing output and services sector in Mauritius," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 1657-1669, April.
    12. Muhammad Qasim Attari & Zahid Pervaiz & Amatul R. Chaudhary, 2016. "Socioeconomic Determinants Of Fertility: A Cross Districts Analysis Of Punjab, Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 4(2), pages :37-48, December.
    13. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Financial Access and Value Added in Sub-Saharan Africa: Empirical Evidence from the Agricultural, Manufacturing and Service Sectors," Working Papers 22/009, European Xtramile Centre of African Studies (EXCAS).
    14. Rahul Anand & Mr. Kevin C Cheng & Sidra Rehman & Ms. Longmei Zhang, 2014. "Potential Growth in Emerging Asia," IMF Working Papers 2014/002, International Monetary Fund.
    15. Aijun Guo & Xiaojiang Ding & Fanglei Zhong & Qingping Cheng & Chunlin Huang, 2019. "Predicting the Future Chinese Population using Shared Socioeconomic Pathways, the Sixth National Population Census, and a PDE Model," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    16. Valentine, Soumtang Bime & Itchoko Motande, Mondjeli Mwa Ndjokou & Salim Ahmed, Vessah Mbouombouo, 2024. "Revisiting natural resources and economic complexity nexus: Does financial development matter in developing countries?," Resources Policy, Elsevier, vol. 93(C).
    17. Petri, Peter A. & Zhai, Fan, 2013. "Navigating a Changing World Economy: ASEAN, the People’s Republic of China, and India," ADBI Working Papers 404, Asian Development Bank Institute.
    18. Magazzino, Cosimo & Drago, Carlo & Schneider, Nicolas, 2023. "Evidence of supply security and sustainability challenges in Nigeria’s power sector," Utilities Policy, Elsevier, vol. 82(C).
    19. Williamson, Jeffrey G. & Bassino, Jean-Pascal, 2015. "From Commodity Booms to Economic Miracles: Why Southeast Asian Industry Lagged Behind," CEPR Discussion Papers 10611, C.E.P.R. Discussion Papers.
    20. Park, Donghyun & Eichengreen, Barry & Shin, Kwanho, 2011. "When Fast Growing Economies Slow Down: International Evidence and Implications for the People's Republic of China," ADB Economics Working Paper Series 262, Asian Development Bank.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arp:tjssrr:2018:p:97-103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Managing Editor (email available below). General contact details of provider: http://arpgweb.com/?ic=journal&journal=7&info=aims .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.