Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market

This paper examines the impacts of the domestic macroeconomic shocks and international disturbances on the Malaysian stock market. The priority objective of this paper is to determine the existence, but not the strength of the causal relationship among the variables. Henceforth, domestic macroeconom...

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Main Author: Yeap, Hong Chen
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Online Access:https://eprints.nottingham.ac.uk/24000/
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author Yeap, Hong Chen
author_facet Yeap, Hong Chen
author_sort Yeap, Hong Chen
building Nottingham Research Data Repository
collection Online Access
description This paper examines the impacts of the domestic macroeconomic shocks and international disturbances on the Malaysian stock market. The priority objective of this paper is to determine the existence, but not the strength of the causal relationship among the variables. Henceforth, domestic macroeconomic shocks and international disturbances are determined separately using two models. The long-run relationship is determined using Johansen-Juselius multivariate cointegration analysis. The short-run dynamic fluctuations are captured using Granger causality test under Vector Error-correction model (VECM) framework. The results suggest that real output plays an important role in generating macroeconomic fluctuations, while international disturbances originated from the US market are the most influential. From a policy point of view, policy designs should be focused on real output growth and alignment of policies with those of the US in alleviating domestic fluctuations.
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format Dissertation (University of Nottingham only)
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institution University of Nottingham Malaysia Campus
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language English
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publishDate 2008
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spelling nottingham-240002018-01-30T22:12:28Z https://eprints.nottingham.ac.uk/24000/ Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market Yeap, Hong Chen This paper examines the impacts of the domestic macroeconomic shocks and international disturbances on the Malaysian stock market. The priority objective of this paper is to determine the existence, but not the strength of the causal relationship among the variables. Henceforth, domestic macroeconomic shocks and international disturbances are determined separately using two models. The long-run relationship is determined using Johansen-Juselius multivariate cointegration analysis. The short-run dynamic fluctuations are captured using Granger causality test under Vector Error-correction model (VECM) framework. The results suggest that real output plays an important role in generating macroeconomic fluctuations, while international disturbances originated from the US market are the most influential. From a policy point of view, policy designs should be focused on real output growth and alignment of policies with those of the US in alleviating domestic fluctuations. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/24000/1/yeaphongchen.pdf Yeap, Hong Chen (2008) Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market. [Dissertation (University of Nottingham only)] (Unpublished)
spellingShingle Yeap, Hong Chen
Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market
title Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market
title_full Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market
title_fullStr Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market
title_full_unstemmed Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market
title_short Domestic Macroeconomic Shocks and International Disturbances on the Malaysian Stock Market
title_sort domestic macroeconomic shocks and international disturbances on the malaysian stock market
url https://eprints.nottingham.ac.uk/24000/