Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques
This paper attempts to investigate if the effect of oil price on growth is asymmetrical for Malaysia, a small-open-dynamic oil-exporting country, over a period from 1981 to 2017. The empirical method employed in this study is the augmented autoregressive distributed lag model (ARDL) bound test appro...
| Main Authors: | , , |
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| Format: | Article |
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Sage Publications
2022
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| Online Access: | http://psasir.upm.edu.my/id/eprint/101977/ |
| _version_ | 1848863682585427968 |
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| author | Kriskkumar, Karunanithi Niaz Ahmad, Mohd Naseem Wan Ngah, Wan Azman Saini |
| author_facet | Kriskkumar, Karunanithi Niaz Ahmad, Mohd Naseem Wan Ngah, Wan Azman Saini |
| author_sort | Kriskkumar, Karunanithi |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper attempts to investigate if the effect of oil price on growth is asymmetrical for Malaysia, a small-open-dynamic oil-exporting country, over a period from 1981 to 2017. The empirical method employed in this study is the augmented autoregressive distributed lag model (ARDL) bound test approach and the recent innovative nonlinear autoregressive distributed lag (NARDL) model. Results suggest that neglecting nonlinearities can lead to misleading results. More precisely, the result reveals that adjustments in the price of oil influence Malaysia’s economic growth asymmetrically. An increase and decrease in the price of oil strengthen the economic growth of Malaysia, demonstrating Malaysia’s ability to be both an oil-producing country and a trading nation. These results strongly imply that Malaysia is able to take advantage of changes in the oil price efficiently. |
| first_indexed | 2025-11-15T13:36:48Z |
| format | Article |
| id | upm-101977 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-15T13:36:48Z |
| publishDate | 2022 |
| publisher | Sage Publications |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-1019772023-08-11T08:39:32Z http://psasir.upm.edu.my/id/eprint/101977/ Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques Kriskkumar, Karunanithi Niaz Ahmad, Mohd Naseem Wan Ngah, Wan Azman Saini This paper attempts to investigate if the effect of oil price on growth is asymmetrical for Malaysia, a small-open-dynamic oil-exporting country, over a period from 1981 to 2017. The empirical method employed in this study is the augmented autoregressive distributed lag model (ARDL) bound test approach and the recent innovative nonlinear autoregressive distributed lag (NARDL) model. Results suggest that neglecting nonlinearities can lead to misleading results. More precisely, the result reveals that adjustments in the price of oil influence Malaysia’s economic growth asymmetrically. An increase and decrease in the price of oil strengthen the economic growth of Malaysia, demonstrating Malaysia’s ability to be both an oil-producing country and a trading nation. These results strongly imply that Malaysia is able to take advantage of changes in the oil price efficiently. Sage Publications 2022-03-10 Article PeerReviewed Kriskkumar, Karunanithi and Niaz Ahmad, Mohd Naseem and Wan Ngah, Wan Azman Saini (2022) Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques. Sage Open, 12 (1). pp. 1-17. ISSN 2158-2440 https://journals.sagepub.com/doi/full/10.1177/21582440221079936 10.1177/21582440221079936 |
| spellingShingle | Kriskkumar, Karunanithi Niaz Ahmad, Mohd Naseem Wan Ngah, Wan Azman Saini Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques |
| title | Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques |
| title_full | Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques |
| title_fullStr | Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques |
| title_full_unstemmed | Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques |
| title_short | Investigating the asymmetric effect of oil price on the economic growth in Malaysia: applying augmented ARDL and nonlinear ARDL techniques |
| title_sort | investigating the asymmetric effect of oil price on the economic growth in malaysia: applying augmented ardl and nonlinear ardl techniques |
| url | http://psasir.upm.edu.my/id/eprint/101977/ http://psasir.upm.edu.my/id/eprint/101977/ http://psasir.upm.edu.my/id/eprint/101977/ |