The industrial production sector (IPS) has played a crucial role in contributing into the gross domestic product (GDP) in a country. From the previous study, the studies on the Malaysian IPS are rarely and did not yet sufficiently studied in the recent year. Therefore, this research attempts to investigate the factors that affect IPS Malaysia from the period of 1970 to 2020 by using ARDL approach and Toda Yamamoto causality test. The objective of this study is to examine the causality relationship and to investigate the existence of long run equilibrium relationship between IPS and the selected macroeconomic variables. From the result of long run model, financial development (FD), inflows of foreign direct investment (IFDI), tax burden (TB), economic stability (ES) and export (X) have long run relationship with IPS. Furthermore, variable of FD, IFDI and ES have negative effect on IPS, while TB and X have positive impact on IPS in the long run. In contrast, from the short run estimates .....

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