Page 532 - 2016 - Vol. 40

However, individual tests indicate that only
consumption expenditure and exports cause economic
growth while this is not so for the government expenditure,
exchange rate and foreign direct investment. The study
concludes that consumption expenditure and exports play
important roles as determinant factors to economic growth,
and government expenditure, exchange rate and foreign
direct investments may have a role as a catalyst and
complement determinant factors to economic growth in
Malaysia.

The relationship between exports growth and
economic growth has been a popular subject of debate
among development economists. Most of these debates
ranging among development economists are focused on the
question of whether strong economic performance is
export-led or growth driven. This question is important
because the determination of the causal pattern between
exports and growth has important implications for policy-
makers' decisions about the appropriate growth and
development strategies and policies to adopt (Iqbal,
Hameed& Devi, 2012).

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