Page 531 - 2016 - Vol. 40

integration hypothesis (following the Johansen method),
the study has investigated the Granger causality between
export growth and GDP and export growth and investment.
In this analysis, he failed to find support for the hypothesis
that exports Granger cause GDP, using two measures for
GDP (GDP with exports and GDP without exports). The
same holds for the relationship between exports and
investment. The finding strengthens the argument against
the export led growth hypothesis for the case of India.

Kogid, (2010) investigates the factors that stimulate

and maintain economic growth. The determinant factors

studied are consumption expenditure, government

expenditure, export, exchange rate, and foreign direct

investment in Malaysia from the year (1970 - 2007). This

study uses co-integration analysis and the causality

approach by Johansen and ECM to analyze the relationship

between economic growth and the determinant factors. The

results of this study showed that there exist long-run co-

integration and multiple short-run causal relationships

between economic growth and the determinant factors.

Overall, findings showed that all the determinant factors

(combined' determinant factors) cause economic growth in

the short-run.

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