Relationship Between Capital Outflows and Real Gross Domestic Product of Malaysia

Huge capital outflow from Malaysia has given great impact to the economy. Capital outflow has given negative impact on Real Gross Domestic Product of Malaysia (Real GDP) and Real GDP by sectors. Elements of capital outflows could be classified into three main categories including foreign direct inve...

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Bibliographic Details
Main Author: Vinothiny, Subramaniam
Format: Thesis
Language:eng
Published: 2011
Subjects:
Online Access:https://etd.uum.edu.my/3721/1/s804894.pdf
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Summary:Huge capital outflow from Malaysia has given great impact to the economy. Capital outflow has given negative impact on Real Gross Domestic Product of Malaysia (Real GDP) and Real GDP by sectors. Elements of capital outflows could be classified into three main categories including foreign direct investment (FDI), portfolio investment, and other investment in balance of payment Malaysia. But, the relationship between capital outflow and real GDP still unclear. With regard to this issue, this particular study attempt to identify the relationship between capital outflow and real GDP, and real GDP by real economic sectors including agricultures, mining and quarrying, manufacturing, construction, and services. The secondary data collected from 1971 to 2010 will be analyzed using the descriptive analysis, hypothesis test, correlation analysis, and multiple regression model. The findings show that the capital outflow gives impact on real GDP and real GDP by sectors reciprocally. In addition, there is string negative correlation between capital outflow and real GDP based on Pearson correlation analysis. The same negative correlation goes to capital outflow and real GDP by sectors.