The determinants of inflation in selected Southeast Asia countries: a comparative study of Singapore, Malaysia and Myanmar / Muhammad Syahir Kamarulzaman

This paper analyses the determinants of Inflation in selected Southeast Asia countries based on Singapore, Malaysian and Myanmar over the past 37 years, since 1980 until 2017. By using time series data, this study applying Unit Root test, Johansen co-integration and Ordinary Least Square to identify the determinants of inflation between independent variables and dependent variable. Unit root test identify that all variables for all three country are stationary at first level except economic growth for Myanmar. Johansen co-integration result found that only Myanmar are co-integrated which implies the existence of long-run relationship. The finding state that the major cause of inflation is economic growth with two countries, Malaysia and Myanmar, are positively significant although the result of Singapore is positive but not significant. Result for Singapore shows none of the variables are significant. Money supply have significant effect on inflation in Malaysia and Myanmar with different effect which negative for Malaysia and positive for Myanmar. Oil price shows significant negative impact on inflation in Myanmar and not significant for both Singapore and Malaysia. Moreover, other variables are not significant in determine the impact of inflation for Singapore, Malaysia and Myanmar.