Investment and Economic Indicators in Malaysia

This study is to investigate the relationship between economic indicators and investment in Malaysia using secondary data spanned through 1982-2015. This study employs an empirical analysis by adapting the unit root test, Johansen co-integration test and vector error correction model (VECM) to dete...

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Main Authors: Masturah Ma’in, Norfaiezah Nordin, Izza Hazira Zailan, Saliza Sulaiman, Zuraidah Ismail
Format: Article
Language:English
Published: UiTM Press 2018-12-01
Series:Journal of International Business, Economics and Entrepreneurship
Subjects:
Online Access:https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1304
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author Masturah Ma’in
Norfaiezah Nordin
Izza Hazira Zailan
Saliza Sulaiman
Zuraidah Ismail
author_facet Masturah Ma’in
Norfaiezah Nordin
Izza Hazira Zailan
Saliza Sulaiman
Zuraidah Ismail
author_sort Masturah Ma’in
collection DOAJ
description This study is to investigate the relationship between economic indicators and investment in Malaysia using secondary data spanned through 1982-2015. This study employs an empirical analysis by adapting the unit root test, Johansen co-integration test and vector error correction model (VECM) to determine the short-run and long run effect among variables. The cointegrating test indicates that investment is significantly related to the trade openness, GDP and population. Based on the VECM results, the findings show that a long run relationship exists between the trade openness and investment in Malaysia. Hence, these reveal that it is important for the Malaysian government to enhance the economic policy in liberalizing foreign trade in order to encourage more investments.
format Article
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institution Kabale University
issn 2550-1429
language English
publishDate 2018-12-01
publisher UiTM Press
record_format Article
series Journal of International Business, Economics and Entrepreneurship
spelling doaj-art-0c1d86b159e3463c98c254672b1603f72024-11-22T07:20:37ZengUiTM PressJournal of International Business, Economics and Entrepreneurship2550-14292018-12-0132Investment and Economic Indicators in MalaysiaMasturah Ma’in0Norfaiezah Nordin1 Izza Hazira Zailan2Saliza Sulaiman3Zuraidah Ismail4Faculty of Business and Management, University Teknologi MARA, Selangor, MalaysiaFaculty of Business and Management, University Teknologi MARA, Selangor, MalaysiaFaculty of Business and Management, University Teknologi MARA, Selangor, MalaysiaFaculty of Business and Management, University Teknologi MARA, Selangor, MalaysiaFaculty of Business and Management, University Teknologi MARA, Selangor, Malaysia This study is to investigate the relationship between economic indicators and investment in Malaysia using secondary data spanned through 1982-2015. This study employs an empirical analysis by adapting the unit root test, Johansen co-integration test and vector error correction model (VECM) to determine the short-run and long run effect among variables. The cointegrating test indicates that investment is significantly related to the trade openness, GDP and population. Based on the VECM results, the findings show that a long run relationship exists between the trade openness and investment in Malaysia. Hence, these reveal that it is important for the Malaysian government to enhance the economic policy in liberalizing foreign trade in order to encourage more investments. https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1304Malaysia, Investment, Trade Openness, Economic Growth, Population
spellingShingle Masturah Ma’in
Norfaiezah Nordin
Izza Hazira Zailan
Saliza Sulaiman
Zuraidah Ismail
Investment and Economic Indicators in Malaysia
Journal of International Business, Economics and Entrepreneurship
Malaysia, Investment, Trade Openness, Economic Growth, Population
title Investment and Economic Indicators in Malaysia
title_full Investment and Economic Indicators in Malaysia
title_fullStr Investment and Economic Indicators in Malaysia
title_full_unstemmed Investment and Economic Indicators in Malaysia
title_short Investment and Economic Indicators in Malaysia
title_sort investment and economic indicators in malaysia
topic Malaysia, Investment, Trade Openness, Economic Growth, Population
url https://journal.uitm.edu.my/ojs/index.php/JIBE/article/view/1304
work_keys_str_mv AT masturahmain investmentandeconomicindicatorsinmalaysia
AT norfaiezahnordin investmentandeconomicindicatorsinmalaysia
AT izzahazirazailan investmentandeconomicindicatorsinmalaysia
AT salizasulaiman investmentandeconomicindicatorsinmalaysia
AT zuraidahismail investmentandeconomicindicatorsinmalaysia