Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia
This paper examines the economy-wide impacts of recent oil price shocks on the Malaysian economy. To achieve this objective, an integrated methodological framework that combines econometric and input–output models is utilized to assess the impacts of an oil price shock on tax revenues, employment, l...
| Main Authors: | , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis
2017
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/62373/ http://psasir.upm.edu.my/id/eprint/62373/1/Measuring%20the%20economic%20impacts%20of%20recent%20oil%20price%20shocks%20on%20oil-dependent%20economy.pdf |
| _version_ | 1848854616139104256 |
|---|---|
| author | Maji, Ibrahim Kabiru Saari, Mohd Yusof Habibullah, Muzafar Shah Utit, Chakrin |
| author_facet | Maji, Ibrahim Kabiru Saari, Mohd Yusof Habibullah, Muzafar Shah Utit, Chakrin |
| author_sort | Maji, Ibrahim Kabiru |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper examines the economy-wide impacts of recent oil price shocks on the Malaysian economy. To achieve this objective, an integrated methodological framework that combines econometric and input–output models is utilized to assess the impacts of an oil price shock on tax revenues, employment, labor income and gross domestic product (GDP). Our results reveal that the recent oil price shocks significantly affects these macroeconomic variables. The decline in oil prices from 2015 to 2016 reduces tax revenues by 10.5%, lower GDP by 1.9% and increases the unemployment rate by 0.3%. As such, the sharp crunch in oil prices serves as a reminder to policymakers on the vulnerability inherent in overreliance on oil exports and the urgent need to diversify the economy. |
| first_indexed | 2025-11-15T11:12:42Z |
| format | Article |
| id | upm-62373 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:12:42Z |
| publishDate | 2017 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-623732020-01-08T03:23:29Z http://psasir.upm.edu.my/id/eprint/62373/ Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia Maji, Ibrahim Kabiru Saari, Mohd Yusof Habibullah, Muzafar Shah Utit, Chakrin This paper examines the economy-wide impacts of recent oil price shocks on the Malaysian economy. To achieve this objective, an integrated methodological framework that combines econometric and input–output models is utilized to assess the impacts of an oil price shock on tax revenues, employment, labor income and gross domestic product (GDP). Our results reveal that the recent oil price shocks significantly affects these macroeconomic variables. The decline in oil prices from 2015 to 2016 reduces tax revenues by 10.5%, lower GDP by 1.9% and increases the unemployment rate by 0.3%. As such, the sharp crunch in oil prices serves as a reminder to policymakers on the vulnerability inherent in overreliance on oil exports and the urgent need to diversify the economy. Taylor & Francis 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/62373/1/Measuring%20the%20economic%20impacts%20of%20recent%20oil%20price%20shocks%20on%20oil-dependent%20economy.pdf Maji, Ibrahim Kabiru and Saari, Mohd Yusof and Habibullah, Muzafar Shah and Utit, Chakrin (2017) Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia. Policy Studies, 38 (4). pp. 357-391. ISSN 0144-2872; ESSN: 1470-1006 https://www.tandfonline.com/doi/abs/10.1080/01442872.2017.1320706?journalCode=cpos20 10.1080/01442872.2017.1320706 |
| spellingShingle | Maji, Ibrahim Kabiru Saari, Mohd Yusof Habibullah, Muzafar Shah Utit, Chakrin Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia |
| title | Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia |
| title_full | Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia |
| title_fullStr | Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia |
| title_full_unstemmed | Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia |
| title_short | Measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from Malaysia |
| title_sort | measuring the economic impacts of recent oil price shocks on oil dependent economy evidence from malaysia |
| url | http://psasir.upm.edu.my/id/eprint/62373/ http://psasir.upm.edu.my/id/eprint/62373/ http://psasir.upm.edu.my/id/eprint/62373/ http://psasir.upm.edu.my/id/eprint/62373/1/Measuring%20the%20economic%20impacts%20of%20recent%20oil%20price%20shocks%20on%20oil-dependent%20economy.pdf |