Does Import Affect Economic Growth in Malaysia

This paper uses the bivariate cointegration and causality analysis based on the Engle-Granger two steps, Johansen, Toda-Yamamoto, and Hsiao's Granger procedures to analyze the relationship between the economic growth and the import in Malaysia from 1970 to 2007. Results show that there is no cointegration exists between economic growth and import, but there exists bilateral causality between economic growth and import. Results also show that import could indirectly contribute to economic growth, and economic growth could also directly contribute to import. These findings may be vital for future economic growth policy.