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Relationship of GDP Growth, Inflation Rate, Exports, Imports and Foreign
Direct Investment to Exchange Rates in Malaysia
Shalmimi Amalia Binti Mohd Rosli
Supervisor: Dr. Suhal Kusairi
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
This study aims to discuss the relationship of GDP growth, inflation, exports, imports
and foreign exchange rates on currency exchange rates in Malaysia. The data used in
this study are time series data from 1985 to 2015. The analysis method used is the
Multiple Linear Regression Model. In this study, there was no existence and the causal
relationship between the variables. In addition, the results of this study show that GDP
growth, inflation, import and foreign investment rates are positively correlated except
for exports to the currency exchange rates in Malaysia. The implications of this study
that GDP growth, inflation, import, export and foreign investment is not the main
cause of currency fluctuation in Malaysia.
JEL Classification Code: E01, F13, F31.
Keywords: GDP growth, inflation rate, foreign direct investment, exports, imports,
exchange rate.
1375 | UMT UNDERGRADUATE RESEARCH DAY 2018