Export-led Growth Hypothesis in Malaysia: New Evidence Using Disaggregated Data of Exports

Export has been considered as main contributor to economic growth in which also known as export-led growth (ELG) \nhypothesis. The purpose of this study is to identify the export-led growth nexus in Malaysia. Specifically, this study focuses \non disaggregated level of exports such as export of goods and manufactured sectors. By using ARDL co-integration \ntechnique for data that covers from 1980 to 2015, the result discovers that exports have positive impact on economic \ngrowth, particularly at disaggregated levels of exports namely exports of goods and export of manufactured sectors. \nThis further supports the validation of the export-led growth hypothesis, especially in small, open and dynamic economy \nlike Malaysia. From policy point of view, Malaysia policy makers should give special focus to search for better catalyst \nof exports promotion strategy to continuously and effectively promote long-term economic growth.