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CPS2141 Lim Kok-Hwa et al.
mining and quarrying, manufacturing, construction, services and import
duties, were all applied in the Least Square Method analysis. Then, the second
phase of analysis focuses on the significant variables with other related
variables which consist of the consumer price index, unemployment rate and
interest rate. In addition, this study has utilized Least Squares Analysis,
Ordinary Correlations Analysis, descriptive analysis and linear relationship
econometric model in identify the significant economic indicators to the
economy.
Economic growth is a measure of the value of output of goods and services
within a time period while economic development is a measure on welfare,
investment, and development in a society.
In line with the objective of this study and the available time series data of
State's GDP in Malaysia, a general econometrics model explains direct
relationship of the state GDP as dependent variable Y, and X for economic
activities as below:
Y= β0 + β1X1 + β2X2 + β3X3+ β4X4+ β5X5+……..+ βnXn, where i = 1…n
The analysis begins with an examination of the coefficients significant test
for each sector toward state GDP in Negeri Sembilan. The test of significance
for βi or αi was carried out with Least Squares Method to obtain a specific
econometrics model for state GDP Negeri Sembilan. Time series data used for
this study is obtained from the growth of state GDP Negeri Sembilan by
economic activities from year 2006 to 2017 obtained from the Department of
Statistics, Malaysia. The modified linear econometrics model for the growth
of the five economic main sectors and import duties as the influencing factors
of GDP Negeri Sembilan have been developed as below:
GDPNegeriSembilan= β0 + β1 X1 + β2 X2 + β3 X3+ β4 X4 + β5 X5 + β6 X6; where,
The first phase with value of coefficients (βi),
Y = GDP Negeri Sembilan; X4 = Construction (CON);
X1 = Agriculture (AGR); X5 = Services (SER);
X2 = Mining and Quarrying (MNQ); X6 = Import Duties (IMD);
X3 = Manufacturing (MFG);
The second phase with value of coefficients (αi),
Y = GDP Negeri Sembilan; X4 = Consumer Price Index (CPI);
X1 = Agriculture (AGR); X5 = Unemployment Rate (UEM);
X2 = Manufacturing (MFG); X6 = Interest Rate (INT);
X3 = Services (SER);
and simple linear model relationship,
Y = GDP Malaysia; X1 = GDP Negeri Sembilan.
The main statistical tool applied for data analysis on Negeri Sembilan
economic performance in this study is E-Views program. E-Views program is
comprehensive and user friendly that managed to provide complicated
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