Price convergence and market integration: evidence from Malaysia
The purpose of this study is to assess the markets integration within Malaysia by examine the price convergence across Peninsular Malaysia, Sabah and Sarawak. Disaggregate monthly price data for various types of goods or services in Peninsular Malaysia, Sabah and Sarawak were utilized. The empirical...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2008
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| Online Access: | http://psasir.upm.edu.my/id/eprint/16337/ http://psasir.upm.edu.my/id/eprint/16337/1/16337.pdf |
| _version_ | 1848842933475737600 |
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| author | Lee, Chin Habibullah, Muzafar Shah |
| author_facet | Lee, Chin Habibullah, Muzafar Shah |
| author_sort | Lee, Chin |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The purpose of this study is to assess the markets integration within Malaysia by examine the price convergence across Peninsular Malaysia, Sabah and Sarawak. Disaggregate monthly price data for various types of goods or services in Peninsular Malaysia, Sabah and Sarawak were utilized. The empirical evidence suggests that there is a price convergence for majority of price groups in Malaysia. With regard to the degree of persistence of deviations from purchasing power parity after a shock, our empirical results showed a half-life of 6.75 years for Malaysia. Among the commodity/price groups, half-life for the tradable goods is roughly 1-2 years and for nontradable goods is about 10 years. The implication of price convergence in Malaysia is the evidence of increase market integration among Peninsular Malaysia, Sabah and Sarawak. |
| first_indexed | 2025-11-15T08:07:00Z |
| format | Article |
| id | upm-16337 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:07:00Z |
| publishDate | 2008 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-163372015-07-06T02:32:45Z http://psasir.upm.edu.my/id/eprint/16337/ Price convergence and market integration: evidence from Malaysia Lee, Chin Habibullah, Muzafar Shah The purpose of this study is to assess the markets integration within Malaysia by examine the price convergence across Peninsular Malaysia, Sabah and Sarawak. Disaggregate monthly price data for various types of goods or services in Peninsular Malaysia, Sabah and Sarawak were utilized. The empirical evidence suggests that there is a price convergence for majority of price groups in Malaysia. With regard to the degree of persistence of deviations from purchasing power parity after a shock, our empirical results showed a half-life of 6.75 years for Malaysia. Among the commodity/price groups, half-life for the tradable goods is roughly 1-2 years and for nontradable goods is about 10 years. The implication of price convergence in Malaysia is the evidence of increase market integration among Peninsular Malaysia, Sabah and Sarawak. Faculty of Economics and Management, Universiti Putra Malaysia 2008-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/16337/1/16337.pdf Lee, Chin and Habibullah, Muzafar Shah (2008) Price convergence and market integration: evidence from Malaysia. International Journal of Economics and Management, 2 (2). pp. 343-352. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol2_no2.htm |
| spellingShingle | Lee, Chin Habibullah, Muzafar Shah Price convergence and market integration: evidence from Malaysia |
| title | Price convergence and market integration: evidence from Malaysia
|
| title_full | Price convergence and market integration: evidence from Malaysia
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| title_fullStr | Price convergence and market integration: evidence from Malaysia
|
| title_full_unstemmed | Price convergence and market integration: evidence from Malaysia
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| title_short | Price convergence and market integration: evidence from Malaysia
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| title_sort | price convergence and market integration: evidence from malaysia |
| url | http://psasir.upm.edu.my/id/eprint/16337/ http://psasir.upm.edu.my/id/eprint/16337/ http://psasir.upm.edu.my/id/eprint/16337/1/16337.pdf |