Impact of monetary and fiscal policy to Bursa Malaysia Plantation Index / Yaqin Yunus and Amalina Ismail

Yunus, Yaqin and Ismail, Amalina (2018) Impact of monetary and fiscal policy to Bursa Malaysia Plantation Index / Yaqin Yunus and Amalina Ismail. In: Plantation Management Exhibition & Seminar (PIMES). Faculty of Plantation and Agrotechnology, Kampus Jasin, p. 94.

Abstract

Play a role to regulate monetary flow while fiscal policy imposed by Malaysian Government play a role to manage public monetary. Progressive growth and development of country economy can be achieved through effective monetary and fiscal policy. Plantation is one of important industry in Malaysia that contribute to the country economy and social interest. In 2016r agriculture sector stood at 8.1 per cent or RM89.5 billion to the Gross Domestic Product (GDP). The purpose of this study is to determine the relationship of monetary and fiscal policy with plantation economy in Malaysia. Overnight Policy Rate (OPR) is used as monetary policy instrument and fiscal expenditure and government revenue are used as fiscal policy instruments while Bursa Malaysia Plantation Index is used as plantation sector economic performance. This study used 30 samples of secondary data from 1st quarter 2011 until 2nd quarter of 2018. The research is examined with unit root test, cointegration test. VECM Model and Granger Causality Test and diagnostic test using quarter data from year 2011 until 2018. The results revealed that fiscal expenditure and government revenue have significant impact to Bursa Malaysia Plantation Index in long run while Overnight Policy Rate (OPR) has significant impact to Bursa Malaysia Index in short run. Thus, monetary policy and fiscal policy should also be considered among all factors that impact the plantation economy. Policy makers, investors and corporations may utilize these findings for their strategic decision.

Metadata

Item Type: Book Section
Creators:
Creators
Email / ID Num.
Yunus, Yaqin
UNSPECIFIED
Ismail, Amalina
amalinabtismail@gmail.com
Subjects: H Social Sciences > HD Industries. Land use. Labor > Agriculture > Agricultural economics
H Social Sciences > HD Industries. Land use. Labor > Agricultural industries
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock exchanges. Insider trading in securities
Divisions: Universiti Teknologi MARA, Melaka > Jasin Campus > Faculty of Plantation and Agrotechnology
Event Title: Plantation Management Exhibition & Seminar (PIMES)
Event Dates: 15
Page Range: p. 94
Keywords: Impact; monetary; fiscal; stock; plantation
Date: December 2018
URI: https://ir.uitm.edu.my/id/eprint/56589
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