THE RELATIONSHIP BETWEEN REAL EXPORT, LABOR FORCE, FOREIGN DIRECT INVESTMENT AND REAL GROSS DOMESTIC PRODUCT IN MALAYSIA

Abstract

Abstract: This study aims to investigate the relationships between real export, labor force, foreign direct investment and real GDP in Malaysia. Generally, the real GDP growth rate is always used   as a measure of a country’s economic growth. In other words, an increase in the real GDP means that the economy is doing well. This study uses annual time series data from 1990 to 2022 for analysis purposes. The estimated model is developed by employing the Ordinary Least Square (OLS) regression model. The findings of this study have discovered a positive correlation between real exports, labor force, foreign direct investment and real GDP. The findings show that as time goes on, all variables, namely real exports, labor force and foreign direct investment have a positive relationship with real GDP. This means that all these aspects have a positive impact on the economic growth of Malaysia, thus driving the economic growth towards positive path. For future study, further analysis should be done to explain more about the relationships of these variables with Malaysia’s real GDP in the short run and long run by using the dynamic approach.