The impact of selected macroeconomic variable toward the inflation in Malaysia from the year 1985 until 2018 / Muhamad Firdaus Mohd Jol

This study examines the relationship between macroeconomic variables and inflation rate in Malaysia from the period year of 1985 to 2018, which consisted of annually data in the total of 34 observations. Time series econometrics was used to capture the effect of macroeconomic variables toward inf...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Mohd Jol, Muhamad Firdaus
التنسيق: Student Project
اللغة:English
منشور في: 2019
الموضوعات:
الوصول للمادة أونلاين:http://ir.uitm.edu.my/id/eprint/41041/1/41041.pdf
http://ir.uitm.edu.my/id/eprint/41041/
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الوصف
الملخص:This study examines the relationship between macroeconomic variables and inflation rate in Malaysia from the period year of 1985 to 2018, which consisted of annually data in the total of 34 observations. Time series econometrics was used to capture the effect of macroeconomic variables toward inflation rate in Malaysia. Moreover, this study also examines the long run, short run, stability, normality, and specification errors of the empirical model. Macroeconomic determinants such as foreign direct investment (FDI), Exchange Rate (ER), Unemployment Rate (UR), Agriculture (AGR) and Government spending are selected in this study. The empirical results concluded that only three from the five of the determinants above are significant towards inflation rate in Malaysia which is foreign direct investment (FDI), exchange rate (ER) and agriculture (AGR) is significant with positive relationship while unemployment rate (ER) and government spending (GS) is not significant with negative relationship. Therefore, Malaysia’s government should strive for an economy growth rate that is stable and consistent with the growth rate of inflation, rather than beating inflation first to strike for a faster growth.