The Role of Technology and Investment in Digitalization and The Economy in Malaysia

Abstract

This study aims to determine the role of technology, especially the internet, and investment trends in the non-financial sector in the development of the Malaysian economy. We take data from the World Bank as a secondary source for the years 2000 to 2020, From our estimation results, We find that the variables we estimate have long-term and short-term correlations such as the variable economic growth with the development of internet users and economic growth with investment, in the short term an increase in the development of internet users will have a positive effect on economic growth, but in the long run, the opposite is true. , it is different with investment and economic growth variables, in the short term this variable will have a negative impact on economic growth, but in the long term, an increase in investment will greatly affect the performance of economic growth. This shows that in the long term, digitalization of the economy is still a significant step in projecting economic growth in Malaysia.