Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration

The purpose of this study is to assess the degree of markets integration within Malaysia by examining price convergence across East and West Malaysia markets. Disaggregate monthly price data (consumer price index) for various categories of goods or services in Peninsular Malaysia, Sabah and Sarawak...

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Main Authors: Mhd. Ruslan, Siti Marsila, Mat Ghani, Gairuzazmi, Khalid, Haniza
Format: Proceeding Paper
Language:English
Published: 2016
Subjects:
Online Access:http://irep.iium.edu.my/51484/
http://irep.iium.edu.my/51484/1/51484_Examining_price_convergence_behaviour_between_Peninsular_Malaysia_and_Sabah_%26_Sarawak.pdf
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author Mhd. Ruslan, Siti Marsila
Mat Ghani, Gairuzazmi
Khalid, Haniza
author_facet Mhd. Ruslan, Siti Marsila
Mat Ghani, Gairuzazmi
Khalid, Haniza
author_sort Mhd. Ruslan, Siti Marsila
building IIUM Repository
collection Online Access
description The purpose of this study is to assess the degree of markets integration within Malaysia by examining price convergence across East and West Malaysia markets. Disaggregate monthly price data (consumer price index) for various categories of goods or services in Peninsular Malaysia, Sabah and Sarawak were utilized from year 2004 to 2015 using ADF unit root test and half-life estimation. Our empirical findings show that there is a price convergence for majority of price commodity groups in Malaysia. The implication of price convergence in Malaysia gives the evidence of market integration among Peninsular Malaysia, Sabah and Sarawak. On the other hand, most of tradable goods prices adjust more rapidly than non-tradable goods when looking at its half-life period.
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format Proceeding Paper
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institution International Islamic University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T16:28:05Z
publishDate 2016
recordtype eprints
repository_type Digital Repository
spelling iium-514842016-08-17T07:48:39Z http://irep.iium.edu.my/51484/ Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration Mhd. Ruslan, Siti Marsila Mat Ghani, Gairuzazmi Khalid, Haniza HE380 Water transportation HF1021 Commercial geography. Economic geography The purpose of this study is to assess the degree of markets integration within Malaysia by examining price convergence across East and West Malaysia markets. Disaggregate monthly price data (consumer price index) for various categories of goods or services in Peninsular Malaysia, Sabah and Sarawak were utilized from year 2004 to 2015 using ADF unit root test and half-life estimation. Our empirical findings show that there is a price convergence for majority of price commodity groups in Malaysia. The implication of price convergence in Malaysia gives the evidence of market integration among Peninsular Malaysia, Sabah and Sarawak. On the other hand, most of tradable goods prices adjust more rapidly than non-tradable goods when looking at its half-life period. 2016-07-28 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/51484/1/51484_Examining_price_convergence_behaviour_between_Peninsular_Malaysia_and_Sabah_%26_Sarawak.pdf Mhd. Ruslan, Siti Marsila and Mat Ghani, Gairuzazmi and Khalid, Haniza (2016) Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration. In: Persidangan Kebangsaan Ekonomi Malaysia ke 11, 27-28 Jul 2016, Putrajaya.
spellingShingle HE380 Water transportation
HF1021 Commercial geography. Economic geography
Mhd. Ruslan, Siti Marsila
Mat Ghani, Gairuzazmi
Khalid, Haniza
Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration
title Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration
title_full Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration
title_fullStr Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration
title_full_unstemmed Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration
title_short Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration
title_sort examining price convergence behaviour between peninsular malaysia and sabah & sarawak: evidence for market integration
topic HE380 Water transportation
HF1021 Commercial geography. Economic geography
url http://irep.iium.edu.my/51484/
http://irep.iium.edu.my/51484/1/51484_Examining_price_convergence_behaviour_between_Peninsular_Malaysia_and_Sabah_%26_Sarawak.pdf