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Analysis of Malaysia’s Economic Relations
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Abstract
The paper examines the economic relations in Malaysia over the past 25 years, focusing on the relationship between real Gross Domestic Product (GDP) and inflation rate change, as well as the relationship between real GDP growth rate and unemployment rate change. Using data from the World Bank from 1998 to 2022, the study employs Phillips curve analysis to understand the impact of the output gap on inflation and Okun’s law analysis to explore the connection between economic growth and unemployment. The findings reveal a weak correlation between real GDP growth and inflation rate change in Malaysia, suggesting the need to consider additional factors such as money supply and international market dynamics in economic analysis. Nevertheless, there is a strong negative correlation between the growth rate of real GDP and the change in the unemployment rate, suggesting that an increase in economic activity leads to a decrease in the unemployment rate. These insights can inform policymakers in Malaysia in formulating effective economic policies to maintain stable growth and employment rates.
Keywords
Malaysia, Economic Relations, Phillips Curve, Okun’s Law, GDP Growth
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Cite this article
Fang,X. (2025). Analysis of Malaysia’s Economic Relations. Advances in Economics, Management and Political Sciences,149,91-96.
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of the 3rd International Conference on Financial Technology and Business Analysis
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