The Effect Of The United States Of America And China Economic Policies On The Economy Of Malaysia

Abstract

Finding out how uncertainty affects macroeconomic indicators and the US and Chinese economic policy is the goal of this study, namely inflation, investment, and Brent oil prices on Malaysia's economic growth. The variables used are GDP, Inflation, Investment, and Brent Oil Prices. We used an annual research period from 1995 to 2020. The method used is Autoregressive Distributed Lag (ARDL). We discover that the unpredictability of the US and Chinese economic policies on Malaysia's economic development differs significantly. The uncertainty of US economic policy has a significant positive effect in the short term, but the uncertainty of China's economic policy in the long term has no effect. Investment variables and oil prices have an effect on economic growth in the first model, in the second model, it is found that investment has a significant effect on Malaysia's economic growth. However, inflation has a significant negative impact on Malaysia's economic growth in both models.