merged

Effective Economic Effects to Development Expenditure, Domestic
Investment and Foreign Direct Investments in Malaysia
Aainaa Izzati binti Azman
Supervisor: Dr. Nor Ermawati binti Hussain
Bachelor of Economics (Natural Resources)
School of Social and Economic Development
Malaysia is also impressed with the economic crisis as it applies the door-to-door policy
economy even though it has started globally. Therefore, the objective of this study is to
see how far the impact of the economic recession affects development expenditure,
domestic investment and foreign direct investment in Malaysia. By using secondary data
from 1980 to 2015, unit root tests, Johansen's co integration test, vector error correction
model (VECM) and granger causality test were carried out. The findings show that there
is a long-term relationship between the economic recession and at least one independent
variable while there is no short-term relationship between the variables. For causal
relationships, the economic recession has been the cause of domestic development and
investment expenditure while foreign direct investment has been the cause of the
recession, domestic development, and investment spending. Hence, the government
must ensure economics stability by implementing various policies.
1488 | UMT UNDERGRADUATE RESEARCH DAY 2018