Economic Growth of Malaysia

Yap, Zi Yan (2023) Economic Growth of Malaysia. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study investigates the economic growth of Malaysia by examining the influence of key factors on the country's Gross Domestic Product (GDP). Employing statistical methods such as Augmented Dickey-Fuller, Phillips-Perron, Autoregressive Distributed Lag, Ordinary Least Squares, Breusch-Pagan-Godfrey tests, and Cumulative Sum analysis. I find that Gross Capital Formation (GCF), Total Factor Productivity (TFP), and School Enrollment Tertiary (SET) significantly and positively correlate with Malaysia's GDP. However, Total Labor Force (TLF) exhibits a negative correlation with GDP, consistent with the production function theory and the law of diminishing returns. These results provide valuable insights into Malaysia's economic growth dynamics, emphasizing the pivotal roles of capital formation, productivity, and education. Such insights are vital for guiding policymakers and stakeholders as Malaysia continues its economic development journey.