Oil prices and Malaysian economy
This paper studies the impact of oil prices on GDP in Malaysia. In particular, three types of oil prices; world oil price (PW), world oil price in domestic currency (PWD), and domestic oil price (PD) are tested against the GDP within VAR framework. Based on the findings, change in PD oil price ap...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
World Business Institute
2009
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/11258/ http://irep.iium.edu.my/11258/1/11258.pdf |
| _version_ | 1848777307117846528 |
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| author | Abd Jalil, Norasibah Mat Ghani, Gairuzazmi Duasa, Jarita |
| author_facet | Abd Jalil, Norasibah Mat Ghani, Gairuzazmi Duasa, Jarita |
| author_sort | Abd Jalil, Norasibah |
| building | IIUM Repository |
| collection | Online Access |
| description | This paper studies the impact of oil prices on GDP in Malaysia. In particular,
three types of oil prices; world oil price (PW), world oil price in domestic currency
(PWD), and domestic oil price (PD) are tested against the GDP within VAR
framework. Based on the findings, change in PD oil price appears to have the
most pronounced effect to the GDP. It is because, significant results of PD
analysis are documented both in short-run and long-run tests. In the asymmetric
test, significant result is documented in PD analysis only. The finding signifies the
presence of asymmetric relationship between oil price changes and the
economy. With these evidences we conclude that, policymakers may consider
using PD oil price as a policy tool in the case oil price increase strikes again in
the future. In the event policymakers are faced with policy options of either to
increase or decrease the oil price, they should be aware that oil price decrease
gives significant effect to the economy than oil price increase. |
| first_indexed | 2025-11-14T14:43:54Z |
| format | Article |
| id | iium-11258 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:43:54Z |
| publishDate | 2009 |
| publisher | World Business Institute |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-112582018-01-30T02:55:13Z http://irep.iium.edu.my/11258/ Oil prices and Malaysian economy Abd Jalil, Norasibah Mat Ghani, Gairuzazmi Duasa, Jarita HB Economic Theory This paper studies the impact of oil prices on GDP in Malaysia. In particular, three types of oil prices; world oil price (PW), world oil price in domestic currency (PWD), and domestic oil price (PD) are tested against the GDP within VAR framework. Based on the findings, change in PD oil price appears to have the most pronounced effect to the GDP. It is because, significant results of PD analysis are documented both in short-run and long-run tests. In the asymmetric test, significant result is documented in PD analysis only. The finding signifies the presence of asymmetric relationship between oil price changes and the economy. With these evidences we conclude that, policymakers may consider using PD oil price as a policy tool in the case oil price increase strikes again in the future. In the event policymakers are faced with policy options of either to increase or decrease the oil price, they should be aware that oil price decrease gives significant effect to the economy than oil price increase. World Business Institute 2009-06 Article NonPeerReviewed application/pdf en http://irep.iium.edu.my/11258/1/11258.pdf Abd Jalil, Norasibah and Mat Ghani, Gairuzazmi and Duasa, Jarita (2009) Oil prices and Malaysian economy. International Review of Business Research Papers, 5 (4). pp. 232-256. ISSN 1837-5685 http://www.bizresearchpapers.com/ |
| spellingShingle | HB Economic Theory Abd Jalil, Norasibah Mat Ghani, Gairuzazmi Duasa, Jarita Oil prices and Malaysian economy |
| title | Oil prices and Malaysian economy |
| title_full | Oil prices and Malaysian economy |
| title_fullStr | Oil prices and Malaysian economy |
| title_full_unstemmed | Oil prices and Malaysian economy |
| title_short | Oil prices and Malaysian economy |
| title_sort | oil prices and malaysian economy |
| topic | HB Economic Theory |
| url | http://irep.iium.edu.my/11258/ http://irep.iium.edu.my/11258/ http://irep.iium.edu.my/11258/1/11258.pdf |