Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises

This study constructs a factor-based model of business cycle identification for the Malaysian economy via the dynamic factor approach. Our central focus is to explore a factor-based business cycle indicator (BCI) that can serve as a good gauge for economic crises. The empirical finding is in harmony...

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Main Authors: Puah, Chin Hong, Shazali, Abu Mansor, Liew, Venus Khim-Sen, Wong, Shirly Siew-Ling
Format: Article
Language:English
Published: Academy of Economic Studies in Bucharest 2016
Subjects:
Online Access:http://ir.unimas.my/id/eprint/16946/
http://ir.unimas.my/id/eprint/16946/1/Measuring%20Business%20Cycle%20Fluctuations%20%28abstract%29.pdf
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author Puah, Chin Hong
Shazali, Abu Mansor
Liew, Venus Khim-Sen
Wong, Shirly Siew-Ling
author_facet Puah, Chin Hong
Shazali, Abu Mansor
Liew, Venus Khim-Sen
Wong, Shirly Siew-Ling
author_sort Puah, Chin Hong
building UNIMAS Institutional Repository
collection Online Access
description This study constructs a factor-based model of business cycle identification for the Malaysian economy via the dynamic factor approach. Our central focus is to explore a factor-based business cycle indicator (BCI) that can serve as a good gauge for economic crises. The empirical finding is in harmony with the envisaged objective; the constructed BCI produces satisfactory identification of business cycle turning points and statistically outperforms the national-owned composite leading indicator (CLI) in terms of predictive accuracy and forecasting performance. Therefore, we reckon that the constructed BCI can serve to identify the business climate and foretell approaching economic crises in a timely manner.
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2016
publisher Academy of Economic Studies in Bucharest
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spelling unimas-169462017-07-19T06:39:14Z http://ir.unimas.my/id/eprint/16946/ Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises Puah, Chin Hong Shazali, Abu Mansor Liew, Venus Khim-Sen Wong, Shirly Siew-Ling HB Economic Theory This study constructs a factor-based model of business cycle identification for the Malaysian economy via the dynamic factor approach. Our central focus is to explore a factor-based business cycle indicator (BCI) that can serve as a good gauge for economic crises. The empirical finding is in harmony with the envisaged objective; the constructed BCI produces satisfactory identification of business cycle turning points and statistically outperforms the national-owned composite leading indicator (CLI) in terms of predictive accuracy and forecasting performance. Therefore, we reckon that the constructed BCI can serve to identify the business climate and foretell approaching economic crises in a timely manner. Academy of Economic Studies in Bucharest 2016 Article PeerReviewed text en http://ir.unimas.my/id/eprint/16946/1/Measuring%20Business%20Cycle%20Fluctuations%20%28abstract%29.pdf Puah, Chin Hong and Shazali, Abu Mansor and Liew, Venus Khim-Sen and Wong, Shirly Siew-Ling (2016) Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises. Economic Computation and Economic Cybernetics Studies and Research, 50 (4). ISSN 1842–3264 https://www.researchgate.net/publication/315657303
spellingShingle HB Economic Theory
Puah, Chin Hong
Shazali, Abu Mansor
Liew, Venus Khim-Sen
Wong, Shirly Siew-Ling
Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises
title Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises
title_full Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises
title_fullStr Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises
title_full_unstemmed Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises
title_short Measuring Business Cycle Fluctuations: An Alternative Precursor To Economic Crises
title_sort measuring business cycle fluctuations: an alternative precursor to economic crises
topic HB Economic Theory
url http://ir.unimas.my/id/eprint/16946/
http://ir.unimas.my/id/eprint/16946/
http://ir.unimas.my/id/eprint/16946/1/Measuring%20Business%20Cycle%20Fluctuations%20%28abstract%29.pdf