Abstract
Many studies have endeavored the most factors contributing to the economic growth. The contribution of foreign direct investment (FDI) to economic growth is possibly one of the widely examined topics in academic research within the last five decades. The other research also shows that employment (EMPLOY) and government expenditure (GOVEXP) contribute to economic growth. Hence, this study’s purpose is to examine the relationship between FDI, EMPLOY, and GOVEXP on Malaysia’s economic growth. This study used Auto Regressive Distributed Lag Model (ARDL) using data from 2012 to 2020. The findings of the study show that there is a positive long-term relationship between employment and economic growth. Based on the findings, related parties involved in formulating policies regarding economic growth may consider that policies associated with employment should be taken into consideration accordingly.
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