The Impact of Export Diversification on the Economic Growth in Malaysia

Thavarajah, Jacinta Jea Ling (2020) The Impact of Export Diversification on the Economic Growth in Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Export diversification remains a great concern for countries all around the world due to its high influence on a country’s revenue and economic growth. The motive for this study is to analyse the impact of export diversification on the economic growth in Malaysia in both short and long run. This study is carried out by using computed data of degree of specialisation and diversification in Malaysia for over the course of 30 years from 1987 to 2017. Furthermore, this study takes into consideration of other determinants which are foreign direct investment and human capital to measure the economic growth in Malaysia. The findings indicate that Malaysia is indeed experiencing diversification in their export basket. Furthermore,the independent variables were found to be positive and significant in relation to the dependent variable in the long run. However, there was no short run relationship found throughout the studies amongst the dependent and independent variables. Yet, this study did find the importance of human capital in the economic growth of Malaysia.