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Determinants of Economic Growth in Malaysia 1970-2010

Author

Listed:
  • Fauzi HUSSIN
  • Norazrul Mat ROS
  • Mohd Saifoul Zamzuri NOOR

Abstract

This paper investigates the determinants of economic growth in Malaysia. Trade openness, foreign direct investment, government development expenditure and gross fixed capital formation are used as indicators of economic growth.The study used time series data for the period 1970 to 2010. The Johansen and Juseliuscointegration approach was applied to determine the long-run relationship between the variables. The study found that trade openness and foreign direct investment have significant but negative impact on economic growth in short run. Our results also show that government development expenditure has the strongest effect on economic growth in Malaysia.

Suggested Citation

  • Fauzi HUSSIN & Norazrul Mat ROS & Mohd Saifoul Zamzuri NOOR, 2013. "Determinants of Economic Growth in Malaysia 1970-2010," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(9), pages 1140-1151.
    • Handle: RePEc:asi:ajoerj:v:3:y:2013:i:9:p:1140-1151:id:3591
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    Cited by:

    1. Maryam Rezaeian & Martin George Wynn, 2021. "Enterprise Resource Planning Systems in Iran: A Profile of the Behko Software House," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 12(3), pages 1-13, July.
    2. Sridevi Narayanan & Chee Keong Choong & Lin Sea Lau, 2020. "An investigation on the role of good governance as a mediating factor in the FDI-Growth nexus: An ASEAN Perspective," Economics Bulletin, AccessEcon, vol. 40(4), pages 2769-2779.

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    Keywords

    Economic growth; Malaysia;

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