Impact of Government Expenditure, Exchange Rate and Unemployment Rate on Economic Growth of Malaysia

Ing Ngiik, Tiong and Jerome, Kueh and Josephine, Yau Tan Hwang and Audrey, Liwan (2021) Impact of Government Expenditure, Exchange Rate and Unemployment Rate on Economic Growth of Malaysia. Global Business and Management Research: An International Journal, 13 (2). pp. 14-27. ISSN 1947-5667

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Abstract

The objective of the study is to investigate the association between government expenditure, exchange rate and unemployment rate on economic growth of Malaysia from 1988 to 2017. All variables in the model are cointegrated with two cointegrating vectors and implies that long-run relationship exist. Granger Causality based on Vector Error Correction Model (VECM) revealed an unidirectional short run causality from government expenditure to economic growth, economic growth to unemployment, unemployment to exchange rate and unemployment to government expenditure. Policies such as fiscal policy and exchange rate policy need to be implemented by policy makers in Malaysia to ensure empowering economic growth.

Item Type: Article
Uncontrolled Keywords: Economic growth, exchange rate, government expenditure, Malaysia, unemployment rate.
Subjects: H Social Sciences > HB Economic Theory
Divisions: Academic Faculties, Institutes and Centres > Faculty of Economics and Business
Depositing User: Swee Hui
Date Deposited: 08 Jun 2021 07:06
Last Modified: 08 Jun 2021 07:06
URI: http://ir.unimas.my/id/eprint/35422

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