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Year 1
GDP Growth (%) -0.5775300586 1
Government Expenditure % per GDP -0.3628894407 -0.278775706574
Household Expenditure % per GDP 0.8972119781 -0.703245500381
Foreign Direct Investment % per GDP -0.0949810726 0.508098587136
Export of Goods and Services % per GDP -0.6271657675 0.810898924859
From the correlation result shown above, the higher the correlation value (-1 and +1), the stronger is the
relationship between the variables. A rule of thumb used by experts is that an absolute value of more than
0.7 or 0.8 may imply multicollinearity. The result shows that the correlation matrix generated from Excel for
The Relationship between Inflation and the other variable in Malaysia from 2014 to 2021 annually. The
value correlation of Export of Goods and Services % per GDP exceed the suggested threshold which is
0.4665. The rest of the correlation does not exceed the suggested threshold.
Government Expenditure % per GDP Household Expenditure % per GDP
1
-0.425809350775226 1
0.0996518111032698 -0.449810668878782
0.202825377650713 -0.848613236330745
1
0.466498966239406 1
THE RELATIONSHIP BETWEEN INFLATION AND THE OTHER V
Export of Goods and Services % per GDP GDP Growth (%) as Dependent Variable (DV)
1.3057 Government Expenditure % per GDP
1.1683 Household Expenditure % per GDP
1.2303 Foreign Direct Investment % per GDP
1.304 Export of Goods and Services % per GDP
1.3316 as Independent Variable (IV)
1.269
1.3137
1.3831