TABLE OF CONTENTS

TITLE PAGE ................................................................................................................................ i

LETTER OF SUBMISSION ......................................................................................................... ii

DECLARATION OF ORIGINAL WORK ...................................................................................... iii

ACKNOWLEDGEMENT ............................................................................................................. iv

TABLE OF CONTENTS .............................................................................................................. v

LIST OF FIGURES .................................................................................................................... ix

LIST OF ABBREVIATIONS ......................................................................................................... x

ABSTRACT ................................................................................................................................ xi

CHAPTER 1: INTRODUCTION ................................................... Error! Bookmark not defined.

1.0 Introduction ................................................................... Error! Bookmark not defined.

1.1 Background of Study..................................................... Error! Bookmark not defined.

1.1.2 Overview of Malaysia Economic Growth ................ Error! Bookmark not defined.

1.2 Problem Statement ....................................................... Error! Bookmark not defined.

1.3 Research Objectives ..................................................... Error! Bookmark not defined.

1.3.1 General Objectives ................................................ Error! Bookmark not defined.

1.3.2 Specific Objectives................................................. Error! Bookmark not defined.

1.4 Research Questions ..................................................... Error! Bookmark not defined.

1.5 Hypotheses of the study ............................................... Error! Bookmark not defined.

1.6 Significance of the Study............................................... Error! Bookmark not defined.

1.7 Scope of Study ............................................................. Error! Bookmark not defined.

1.8 Limitation of The Study ................................................. Error! Bookmark not defined.

1.9 Definition of the Term .................................................... Error! Bookmark not defined.

1.9.1 Consumer Price Index ........................................... Error! Bookmark not defined.

1.9.2 Government Expenditure ....................................... Error! Bookmark not defined.

1.9.3 Population .............................................................. Error! Bookmark not defined.

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 1.10 Conclusion .................................................................... Error! Bookmark not defined.

CHAPTER 2: LITERATURE REVIEW ......................................... Error! Bookmark not defined.

2.0 Introduction ................................................................... Error! Bookmark not defined.

2.1 Review of the Literature ................................................ Error! Bookmark not defined.

2.1.1 Economic Growth .................................................. Error! Bookmark not defined.

2.1.2 Consumer Price Index ........................................... Error! Bookmark not defined.

2.1.3 Government Expenditure ....................................... Error! Bookmark not defined.

2.1.4 Population .............................................................Error! Bookmark not defined.0

2.2 Theory .........................................................................Error! Bookmark not defined.2

2.2.1 Keynesian Theory .................................................Error! Bookmark not defined.2

2.3 Conclusion ...................................................................Error! Bookmark not defined.3

CHAPTER 3: METHODOLOGY .................................................Error! Bookmark not defined.4

3.0 Introduction ..................................................................Error! Bookmark not defined.4

3.1 Research Design .........................................................Error! Bookmark not defined.5

3.2 Data Collection Methods ..............................................Error! Bookmark not defined.6

3.3 Data Processing .........................................................................................................27

3.4 Data Analysis ..............................................................................................................27

3.4.1 Descriptive Statistic..............................................................................................28

3.4.2 Unit Root Test ......................................................................................................28

3.4.3 Ordinary Least Squares (OLS) .............................................................................28

3.4.4 Multiple Linear Regressions .................................................................................29

3.5 F-Test Statistics ...........................................................Error! Bookmark not defined.0

3.6 T-Test Statistics ...........................................................Error! Bookmark not defined.0

3.7 Diagnostic Checking ....................................................Error! Bookmark not defined.1

3.7.1 Model Specification and Normality test .................Error! Bookmark not defined.1

3.7.2 Autocorrelation......................................................Error! Bookmark not defined.2

3.7.3 Multicollinearity .....................................................Error! Bookmark not defined.3

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 3.7.4 Heteroscedasticity ................................................Error! Bookmark not defined.3

3.8 Theoretical Framework ................................................Error! Bookmark not defined.5

3.9 Conclusion ...................................................................Error! Bookmark not defined.5

CHAPTER 4: FINDING AND ANALYSIS....................................Error! Bookmark not defined.6

4.0 Introduction ..................................................................Error! Bookmark not defined.6

4.1 Unit root test ................................................................Error! Bookmark not defined.6

4.1.1 Augmented Dickey-Fuller (ADF) Test ..................................................................37

4.1.2 Phillips-Perron (PP) Test .....................................................................................38

4.2 Normality Test.............................................................................................................39

4.2.1 Jarque Bera .........................................................................................................39

4.3 Descriptive Statistics ....................................................Error! Bookmark not defined.0

4.4 Preliminary Analysis .....................................................Error! Bookmark not defined.2

4.4.1 Gross Domestic Product .......................................Error! Bookmark not defined.2

4.4.2 Consumer Price Index ..........................................Error! Bookmark not defined.3

4.4.3 Government Expenditure ......................................Error! Bookmark not defined.3

4.4.4 Population .............................................................Error! Bookmark not defined.4

4.5 Scatter Plot ..................................................................Error! Bookmark not defined.5

4.5.1 Consumer Price Index and Gross Domestic Product ............ Error! Bookmark not
defined.5

4.5.2 Government Expenditure and Gross Domestic Product ........ Error! Bookmark not
defined.5

4.5.3 Population and Gross Domestic Product...............Error! Bookmark not defined.6

4.6 Correlation Analysis ....................................................................................................47

4.7 Diagnostic Test ...........................................................................................................48

4.7.1 Empirical Model 1 – Consumer Price Index and Gross Domestic Product ...........48

4.7.2 Empirical Model 2 – Government Expenditure and Gross Domestic Product . Error!
Bookmark not defined.1

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 4.7.3 Empirical Model 3 – Population and Gross Domestic Product..... Error! Bookmark
not defined.

4.7.4 Empirical Model 4 of Multiple Linear Regressions Model ...... Error! Bookmark not
defined.

4.7.5 Multicollinearity Test .............................................. Error! Bookmark not defined.

4.8 Model Selection ............................................................ Error! Bookmark not defined.

4.9 Conclusion .................................................................... Error! Bookmark not defined.

CHAPTER 5 : DISCUSSION, CONCLUSION AND IMPLICATIONS .......... Error! Bookmark not

defined.

5.0 Introduction ................................................................... Error! Bookmark not defined.

5.1 Discussions on major findings ....................................... Error! Bookmark not defined.

5.1.1 Consumer Price Index ........................................... Error! Bookmark not defined.

5.1.2 Government Expenditure ....................................... Error! Bookmark not defined.

5.1.3 Population .............................................................. Error! Bookmark not defined.

5.2 Implications of the study................................................ Error! Bookmark not defined.

5.3 Suggestion for Future Research ................................... Error! Bookmark not defined.

5.4 Conclusion .................................................................... Error! Bookmark not defined.

REFERENCES ........................................................................... Error! Bookmark not defined.

APPENDICES ............................................................................. Error! Bookmark not defined.

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