Abstract:
In general, this paper work is to study the factors that have led to unemployment in
Malaysia from year 1975 to 2009. The main purpose of this study is to find out
whether the increment in international trade in Malaysia has affected the
unemployment rate. Particularly in this study, the variables are set to be the total of
recorded unemployment, export and import. Then those variables will be studied to
determine their short-term and long-term relationships among them. The researchers
used method of simple regression, to identify the trend within the time series, static
test to find out the long-term relationship. Based on the research conducted, the
researchers find out that the tests have proven that there are short-term and long-term
relationships among those variables. The result shows that there are strong influences
the import and export variable towards the unemployment.
