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The Nexus of Investment and Economic Growth in Malaysia
Siti Nor Nadzirah bt Mohd Nazaruddin
Supervisor: Assoc. Prof. Dr. Nur Azura Sanusi
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
Within the rapid of economic growth due to openness, the growth of investment
activities is becoming worldwide. Private investment has being the important source
of growth in Malaysia for the past four decades. Therefore, this research will
investigate the contribution of investment to the economy. Investment has positive
impact on Malaysia’s economic growth. Three other factors that affect the economic
growth in Malaysia as well as investment are exports and savings. This study uses
annual time series data from 1980-2017. Unit root test, autoregressive distributer lag
(ARDL) and test for consistency are adopted in order to investigate the relationship
between private investment and the independent variables. There is a long run
relationship between investment and the determinant factors, where GDP being the
most contributing factor with the highest elasticity. Meanwhile, export negatively
contribute to the economic growth in the long run. While, saving is the important
indicator to the economic growth in short run and long run.
1373 | UMT UNDERGRADUATE RESEARCH DAY 2018