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Factors That Affecting Graduate Unemployment Rate in Asia<br />

Aiman bin Rashid<br />

Supervisor: Dr. Zairihan bt Abdul Halim<br />

Bachelor of Economics (Natural Resources)<br />

School of Social and Economic Development<br />

This study was conducted to identify the relationship between the dependent variables is<br />

unemployment rate and tertiary education and independent variables are gross domestic<br />

product (GDP), inflation, foreign direct investment inflow, foreign direct investment<br />

outflow, GDP outflow and inflow. The study has used 14 Asian countries from 1997 to<br />

2016, and this panel data has been estimated using the 'Fixed Effect Model' method. The<br />

results show that GDP, inflation, foreign direct investment outflow and average GDP<br />

inflow are not closely related to the unemployment rate. Furthermore, for foreign direct<br />

investment inflows with the average GDP outflow has been positively correlated and<br />

closely related to the unemployment rate variables. GDP, incoming foreign direct<br />

investment and average GDP showed positive correlation to tertiary education variables.<br />

While inflation, foreign direct investment outflow and the average GDP outflow have<br />

shown a negative correlation to the study for a period of 20 years. In conclusion, this<br />

study is also to understand the factors that have influenced the unemployment rate and<br />

the effects of unemployment to graduates.<br />

1465 | UMT UNDERGRADUATE RESEARCH DAY 2018

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