The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia
This paper investigates the impact of international oil price on output and electricity consumption in the manufacturing sector in Malaysia. Wefound that electricity consumption, output and the international oil price are cointegrated in the long run. The relationship between electricity consumption...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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School of Social Sciences, USM
2014
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| Online Access: | http://ir.unimas.my/id/eprint/17920/ http://ir.unimas.my/id/eprint/17920/1/Proceedings%20of%20International%20Conference%20on%20Contemporary%20Economic%20Issues%202014%20%28abstract%29.pdf |
| _version_ | 1848838397085351936 |
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| author | Husainia, Dzul Hadzwan Hooi, Hooi Lean |
| author_facet | Husainia, Dzul Hadzwan Hooi, Hooi Lean |
| author_sort | Husainia, Dzul Hadzwan |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | This paper investigates the impact of international oil price on output and electricity consumption in the manufacturing sector in Malaysia. Wefound that electricity consumption, output and the international oil price are cointegrated in the long run. The relationship between electricity consumption and output is significantly positive. In the long run, we found a unidirectional causality runs from output to electricity consumption. This result indicates that the development of manufacturing sector stimulates greater demand for electricity. Government needs to make sure that the future planning of electricity supply is in line with the economic development planning to avoid shortage in electricity supply. Focusing more on industrial development policy to promote growth in manufacturing sector is recommended since energy conservation is expected not to give an adverse impact to the output growth. In the short run, there are two unidirectional relationships exist, 1)from the
international oil price to electricity consumption,and 2) from international oil price to manufacturing output. A shock in international oil price might affect both electricity consumption and output growth in the short run only. |
| first_indexed | 2025-11-15T06:54:54Z |
| format | Article |
| id | unimas-17920 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:54:54Z |
| publishDate | 2014 |
| publisher | School of Social Sciences, USM |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-179202017-10-04T01:12:19Z http://ir.unimas.my/id/eprint/17920/ The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia Husainia, Dzul Hadzwan Hooi, Hooi Lean H Social Sciences (General) This paper investigates the impact of international oil price on output and electricity consumption in the manufacturing sector in Malaysia. Wefound that electricity consumption, output and the international oil price are cointegrated in the long run. The relationship between electricity consumption and output is significantly positive. In the long run, we found a unidirectional causality runs from output to electricity consumption. This result indicates that the development of manufacturing sector stimulates greater demand for electricity. Government needs to make sure that the future planning of electricity supply is in line with the economic development planning to avoid shortage in electricity supply. Focusing more on industrial development policy to promote growth in manufacturing sector is recommended since energy conservation is expected not to give an adverse impact to the output growth. In the short run, there are two unidirectional relationships exist, 1)from the international oil price to electricity consumption,and 2) from international oil price to manufacturing output. A shock in international oil price might affect both electricity consumption and output growth in the short run only. School of Social Sciences, USM 2014 Article PeerReviewed text en http://ir.unimas.my/id/eprint/17920/1/Proceedings%20of%20International%20Conference%20on%20Contemporary%20Economic%20Issues%202014%20%28abstract%29.pdf Husainia, Dzul Hadzwan and Hooi, Hooi Lean (2014) The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia. International Conference on Contemporary Economic Issues 2014 : Stimulating Economic Growth, Improving Quality of Life & Enhancing Youth Involvement. pp. 47-53. ISSN ISBN 978-967-394-206-0 |
| spellingShingle | H Social Sciences (General) Husainia, Dzul Hadzwan Hooi, Hooi Lean The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia |
| title | The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia |
| title_full | The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia |
| title_fullStr | The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia |
| title_full_unstemmed | The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia |
| title_short | The Impact of International Oil Price on Electricity Consumption and Output: A Case of Manufacturing Sector in Malaysia |
| title_sort | impact of international oil price on electricity consumption and output: a case of manufacturing sector in malaysia |
| topic | H Social Sciences (General) |
| url | http://ir.unimas.my/id/eprint/17920/ http://ir.unimas.my/id/eprint/17920/1/Proceedings%20of%20International%20Conference%20on%20Contemporary%20Economic%20Issues%202014%20%28abstract%29.pdf |