Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia

The purpose of this study is to examine the short and long-run impacts of crude oil price (CP), exchange rate (EXR) and inﬂation (CPI) on the economic activity (GDP) of Malaysia within the framework of the vector error correction model (VECM). The results suggest that CP positively affects GDP in th...

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Main Authors:	Mantai, Mohammed Mahmoud, Alom, Fardous
Format:	Article
Language:	English English
Published:	Wiley Blackwell 2016
Subjects:	HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods
Online Access:	http://irep.iium.edu.my/50995/ http://irep.iium.edu.my/50995/ http://irep.iium.edu.my/50995/2/10.1111_opec.12073.pdf http://irep.iium.edu.my/50995/7/50995_Impacts%20of%20oil%20price_wos.pdf

id	iium-50995
recordtype	eprints
spelling	iium-509952016-12-22T09:03:48Z http://irep.iium.edu.my/50995/ Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia Mantai, Mohammed Mahmoud Alom, Fardous HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods The purpose of this study is to examine the short and long-run impacts of crude oil price (CP), exchange rate (EXR) and inﬂation (CPI) on the economic activity (GDP) of Malaysia within the framework of the vector error correction model (VECM). The results suggest that CP positively affects GDP in the short-run and the tests do not identify any signiﬁcant impacts of EXR and CPI on the GDP. However, all these variables maintain a long-run relationship with GDP. The causality tests have shown unidirectional Granger causality that run from CP to GDP and not from EXR and CPI to GDP. The ﬁndings of this study are expected to provide insights for practitioners and policy makers to understand the impacts of the CP shocks and its spillovers in the economic activity of Malaysia. Wiley Blackwell 2016-06 Article PeerReviewed application/pdf en http://irep.iium.edu.my/50995/2/10.1111_opec.12073.pdf application/pdf en http://irep.iium.edu.my/50995/7/50995_Impacts%20of%20oil%20price_wos.pdf Mantai, Mohammed Mahmoud and Alom, Fardous (2016) Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia. OPEC Energy Review, 40 (2). pp. 180-191. ISSN 1753-0229 E-ISSN 1753-0237 http://onlinelibrary.wiley.com/doi/10.1111/opec.12073/abstract
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods
spellingShingle	HB Economic Theory HB131 Methodology.Mathematical economics. Quantitative methods Mantai, Mohammed Mahmoud Alom, Fardous Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia
description	The purpose of this study is to examine the short and long-run impacts of crude oil price (CP), exchange rate (EXR) and inﬂation (CPI) on the economic activity (GDP) of Malaysia within the framework of the vector error correction model (VECM). The results suggest that CP positively affects GDP in the short-run and the tests do not identify any signiﬁcant impacts of EXR and CPI on the GDP. However, all these variables maintain a long-run relationship with GDP. The causality tests have shown unidirectional Granger causality that run from CP to GDP and not from EXR and CPI to GDP. The ﬁndings of this study are expected to provide insights for practitioners and policy makers to understand the impacts of the CP shocks and its spillovers in the economic activity of Malaysia.
format	Article
author	Mantai, Mohammed Mahmoud Alom, Fardous
author_facet	Mantai, Mohammed Mahmoud Alom, Fardous
author_sort	Mantai, Mohammed Mahmoud
title	Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia
title_short	Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia
title_full	Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia
title_fullStr	Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia
title_full_unstemmed	Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia
title_sort	impacts of oil price, exchange rate and inflation on the economic activity of malaysia
publisher	Wiley Blackwell
publishDate	2016
url	http://irep.iium.edu.my/50995/ http://irep.iium.edu.my/50995/ http://irep.iium.edu.my/50995/2/10.1111_opec.12073.pdf http://irep.iium.edu.my/50995/7/50995_Impacts%20of%20oil%20price_wos.pdf
first_indexed	2023-09-18T21:12:10Z
last_indexed	2023-09-18T21:12:10Z
_version_	1777411324794372096

Impacts of oil price, exchange rate and inflation on the economic activity of Malaysia

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