The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis

By using an input-output model, this paper attempts to examine the economic impact on the Malaysian economy resulting from an increase in crude oil petroleum price. By simulating different levels of crude oil prices, we found that an increase in the world crude oil petroleum price gives more capaci...

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Main Authors: M. Yusof, Saari, Ahmad Fauzi, Puasa, Khairul Hisyam, Hassan
Format: Article
Language:English
Published: Malaysian Economic Association 2007
Subjects:
Online Access:http://ir.unimas.my/id/eprint/18371/
http://ir.unimas.my/id/eprint/18371/7/The%20Impact%20of%20World%20Crude%20Oil%20Price%20Changes%20on%20the%20Malaysian%20%28abstract%29.pdf
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author M. Yusof, Saari
Ahmad Fauzi, Puasa
Khairul Hisyam, Hassan
author_facet M. Yusof, Saari
Ahmad Fauzi, Puasa
Khairul Hisyam, Hassan
author_sort M. Yusof, Saari
building UNIMAS Institutional Repository
collection Online Access
description By using an input-output model, this paper attempts to examine the economic impact on the Malaysian economy resulting from an increase in crude oil petroleum price. By simulating different levels of crude oil prices, we found that an increase in the world crude oil petroleum price gives more capacity to the economy in generating output and revenue collected by the government in the form of direct and indirect taxes. However, it is very clear that if the crude oil price reaches USD60/barrel, the government will be required to subsidise about RM8.27 of the petrol retail price in order to maintain the current price level. Keywords: Economic impact, input-output analysis, oil price, Malaysian economy JEL classification: C67, E66
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institution Universiti Malaysia Sarawak
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language English
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publishDate 2007
publisher Malaysian Economic Association
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spelling unimas-183712017-10-31T07:21:46Z http://ir.unimas.my/id/eprint/18371/ The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis M. Yusof, Saari Ahmad Fauzi, Puasa Khairul Hisyam, Hassan HB Economic Theory By using an input-output model, this paper attempts to examine the economic impact on the Malaysian economy resulting from an increase in crude oil petroleum price. By simulating different levels of crude oil prices, we found that an increase in the world crude oil petroleum price gives more capacity to the economy in generating output and revenue collected by the government in the form of direct and indirect taxes. However, it is very clear that if the crude oil price reaches USD60/barrel, the government will be required to subsidise about RM8.27 of the petrol retail price in order to maintain the current price level. Keywords: Economic impact, input-output analysis, oil price, Malaysian economy JEL classification: C67, E66 Malaysian Economic Association 2007 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18371/7/The%20Impact%20of%20World%20Crude%20Oil%20Price%20Changes%20on%20the%20Malaysian%20%28abstract%29.pdf M. Yusof, Saari and Ahmad Fauzi, Puasa and Khairul Hisyam, Hassan (2007) The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis. Malaysian Journal of Economic Studies, 44 (1). pp. 1-12. ISSN 15114554
spellingShingle HB Economic Theory
M. Yusof, Saari
Ahmad Fauzi, Puasa
Khairul Hisyam, Hassan
The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis
title The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis
title_full The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis
title_fullStr The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis
title_full_unstemmed The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis
title_short The Impact of World Crude Oil Price Changes on the Malaysian Economy: an Input-Output Analysis
title_sort impact of world crude oil price changes on the malaysian economy: an input-output analysis
topic HB Economic Theory
url http://ir.unimas.my/id/eprint/18371/
http://ir.unimas.my/id/eprint/18371/7/The%20Impact%20of%20World%20Crude%20Oil%20Price%20Changes%20on%20the%20Malaysian%20%28abstract%29.pdf