Page 399 - Contributed Paper Session (CPS) - Volume 7

CPS2141 Lim Kok-Hwa et al.
in Negeri Sembilan was also influenced with the support from various project
implementations, such as Economic Transformation Program (ETP), New Key
Economic Area (NKEA), and Liberalisation impacted from the 10th Malaysia
Plan towards Malaysia Vision 2020 at national level.
The objective of this paper is to study factors that influencing the economic
growth and to identify the significant economic activities that performed as
the major contributor towards the state economy in Negeri Sembilan. It also
aims to present some endogenous analysis of statistical data with economic
growth in Negeri Sembilan as well as to provide exposure to the regional
economic data user particularly statisticians and analyst. The indicators of
economic factors in Negeri Sembilan are illustrated via percentage growth
shown by specific statistical indicators. Firstly, regression analysis using Least
Square Method has been applied to construct econometric models and
determine the correlation among the economic indicators in Negeri Sembilan.
The relationship among GDP Negeri Sembilan with the five (5) economic main
sectors, i.e. agriculture, mining & quarrying, manufacturing, constructions and
services as well as import duties were being analyses. The analysis has been
applied on the statistical indicators that measure regional economic growth to
determine the causal relationship between state GDP and the selected
available economic indicators. Then, further analysis focuses on the significant
sectors and the growth of other economic indicators were implemented,
namely the consumer price index, unemployment rate and interest rate.
Petrakos G., Kallioras D. and Anagnostou A. (2007) The opening of national
borders, together with the rapid technological and scientific progress, has
exposed regional economies to an extremely competitive, free-market,
integrated economic environment, affecting their patterns of development.
The paper develops a generalized econometric model for the investigation of
the determinants of regional economic growth in 249 EU NUTS II regions, for
the period 1990-2003. Fauzi H. and Soo Y.Y. (2012) examined the contribution
of economic sectors to economic growth in China and India by using time
series data from 1978 to 2007.The correlation analysis indicated that each
agriculture, manufacturing and services sectors has strong, positive and
significant linear relationship with economic growth in both countries. The
results show that manufacturing sector contributes the highest to China's
economic while services sector is the highest contributor to India's economic
growth.

2. Methodology
This section described briefly about the concepts and statistical techniques
applied in the GDP data analysis for economic growth in Negeri Sembilan. In
the first phase, this paper studied the correlation and relationship among
Negeri Sembilan’s GDP with the main economic components, i.e. agriculture,

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