Co-movement of output and price in Malaysia: empirical evidence and macroeconomic policy implications / Salina H. Kassim and Turkhan Ali Abdul Manap

H. Kassim, Salina and Abdul Manap, Turkhan Ali (2012) Co-movement of output and price in Malaysia: empirical evidence and macroeconomic policy implications / Salina H. Kassim and Turkhan Ali Abdul Manap. Terengganu International Finance and Economics Journal (TIFEJ), 2 (2). pp. 63-74. ISSN 2232-0539

Abstract

This study conducts a comprehensive analysis on the output-price relationship in Malaysia with the objective of identifying the major source of macroeconomic fluctuations in Malaysia, thus drawing relevant policy recommendations for effective macroeconomic stabilization policy. We analyze the short- and long-run co-movements between real activity and prices using several tests in efforts to arrive at conclusive findings. Apart from the descriptive analysis, the study relies on the VAR forecast errors based on Den Haan and Sumner (2000). The study considers an extended data sample of monthly frequency covering the period from January 1971 to November 2009. The study aims to contribute towards enriching policy recommendations for effective macroeconomic stabilization policy in the country.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
H. Kassim, Salina
ksalina@iium.edu.my
Abdul Manap, Turkhan Ali
UNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography
H Social Sciences > HB Economic Theory. Demography > Macroeconomics
H Social Sciences > HB Economic Theory. Demography > Business cycles. Economic fluctuations. Economic indicators
H Social Sciences > HB Economic Theory. Demography > Consumption. Demand (Economic theory) > Malaysia
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus > Faculty of Business and Management
Journal or Publication Title: Terengganu International Finance and Economics Journal (TIFEJ)
UiTM Journal Collections: Others > Terengganu International Finance and Economics Journal (TIFEJ)
ISSN: 2232-0539
Volume: 2
Number: 2
Page Range: pp. 63-74
Keywords: Business Cycles, Correlation, VAR, Stabilization Policy, Malaysia
Date: 2012
URI: https://ir.uitm.edu.my/id/eprint/59639
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