Measuring the Effects of World Oil Price Change on Economic Growth and Energy Demand in Malaysia: An ARDL Bound Testing Approach

Bt, Nora Yusma; Yusoff, M. N. M.; Wahilah, Nurul; Latif, Abdul

doi:10.7763/ijtef.2013.v4.256

Cited by 5 publications

(4 citation statements)

References 27 publications

(20 reference statements)

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“…Test outcomes demonstrated that oil prices just influenced economic growth in China and Japan. Yussof and Latif (2013) inspected the impact of oil prices on economic growth in Malaysia utilizing information that stretched out from 1966 to 2006. The autoregressive distributed lag (ARDL) model was utilized to test these impacts.…”

Section: Review Of Literature and Hypothesis Developmentmentioning

confidence: 99%

An Empirical Study on Short Term and Long-Term Consequences of Crude Oil on Economic Wellbeing of Indonesia by Applying Autoregressive Distributed Lag Model

Roespinoedji¹,

Roespinoedji²,

Siam³

et al. 2019

IJEEP

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Oil has been one of the primary wellsprings of Indonesia's revenue, either from government spending plan or balance of payments purpose of perspectives. Because of supply and demand of oil on the planet market, prices of oil, either ICP, Brent UK, or WTI, had been decay of late. Oil prices and economic wellbeing are essential markers to see the achievement of Indonesia's improvement execution. The utilization of oil as the world's fundamental energy source when all is said in done and Indonesia specifically is driven by industrialization. The more ventures, the more prominent the energy resources required. In a similar setting, economic wellbeing will likewise expand oil demand. Oil has a strategic nature and is a vital ware that influences the world economy. Both oil exporters and merchants are probably going to feel the impacts of oil price advancements. Oil prices dropped pointedly since June 2014 finishing a 4 year time of relative price strength. The size and speed of decay has been noteworthy yet not remarkable. This exploration plans to analyze the impact of crude oil prices on economic wellbeing in Indonesia. Data on crude oil prices and economic growth are yearly time series data stretching from 1987 to 2016. The aftereffects of co-integration tests demonstrate that there is no long-term connection between crude oil prices and economic wellbeing. In any case, the estimation of the autoregressive distributed lag (5.0) model demonstrates that in the short term, there is the impact of crude oil prices toward economic wellbeing.

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Section: Review Of Literature and Hypothesis Developmentmentioning

confidence: 99%

An Empirical Study on Short Term and Long-Term Consequences of Crude Oil on Economic Wellbeing of Indonesia by Applying Autoregressive Distributed Lag Model

Roespinoedji¹,

Roespinoedji²,

Siam³

et al. 2019

IJEEP

View full text Add to dashboard Cite

show abstract

“…Test results showed that oil prices only affected economic growth in China and Japan. Yussof and Latif (2013) examined the effect of oil prices on economic growth in Malaysia using data that extended from 1966 to 2006. The ARDL model was used to test these effects.…”

Section: Literature Reviewmentioning

confidence: 99%

“…the findings ofMendosa and Vera (2010), Jiménez-Rodríguez and Sánchez (2004),Chai et al (2015),Yussof and Latif (2013),Maheu et al (2018),Hanabusa (2009), Besso and Pamen (2017),Ftiti et al (2016),Malik (2010) Yoshino and Taghizadeh-Hesary (2014),Mhamad and Saeed (2016),Qianqian (2011 ),Gummi et al …”

mentioning

confidence: 91%

Untitled

2019

IJEEP

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This research aims to examine the effect of crude oil prices on economic growth in South East Sulawesi, Indonesia. Data on crude oil prices and economic growth are annual time series data stretching from 1987 to 2016. The results of co-integration tests show that there is no long-term relationship between crude oil prices and economic growth. However, the estimation of the autoregressive distributed lag (5.0) model shows that in the short term, there is the influence of crude oil prices toward economic growth.

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“…Moreover, they have found strong evidence that confirm the linearity of the relationship between CP changes and GDP growth. Nonetheless, in recent studies, Yusoff and Latif () have examined the effects of World CP changes on Malaysian economic growth and find that World CP changes positively affect real GDP in the short run. Ibrahim and Said (), however, have found evidence that in the long run the CP and real GDP are cointegrated only through the aggregate CPI and food prices.…”

Section: Introductionmentioning

confidence: 99%

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

Mantai

Alom

2016

OPEC Energy Review

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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.

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Measuring the Effects of World Oil Price Change on Economic Growth and Energy Demand in Malaysia: An ARDL Bound Testing Approach

Cited by 5 publications

References 27 publications

An Empirical Study on Short Term and Long-Term Consequences of Crude Oil on Economic Wellbeing of Indonesia by Applying Autoregressive Distributed Lag Model

An Empirical Study on Short Term and Long-Term Consequences of Crude Oil on Economic Wellbeing of Indonesia by Applying Autoregressive Distributed Lag Model

Untitled

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

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