The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia

The purpose of this study is to investigate the relationship between inflation, exchange rate and stock prices toward GOP in Malaysia as less similar studies were found. Through this study, the existence of bidirectional relationships of inflation, exchange rate and stock prices to GOP were detennin...

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Main Author:	Boon, Siaw Khim
Format:	Thesis
Language:	English
Published:	2013
Subjects:	HB Economic Theory
Online Access:	http://ir.unimas.my/id/eprint/9087/3/Boon%20Siaw%20Khim%20ft.pdf
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id	my-unimas-ir.9087
record_format	uketd_dc
spelling	my-unimas-ir.90872023-07-31T09:25:33Z The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia 2013 Boon, Siaw Khim HB Economic Theory The purpose of this study is to investigate the relationship between inflation, exchange rate and stock prices toward GOP in Malaysia as less similar studies were found. Through this study, the existence of bidirectional relationships of inflation, exchange rate and stock prices to GOP were detennined as the interaction between these variables are importance as indicator for the health of economy in MalaYSia.) This study was carried out using quarterly time series data from period of 2000 to 2011 in where GOP as dependent variable while inflation (CPI), exchange rate (NEER) and stock prices (SP) as independent variables. The empirical analysis choose were Unit Root test, Johansen Cointegration test, Granger Causality test and Vector Error Correction Model. The result for inflation and exchange rate to GOP was not significant as well as GOP does not Granger cause inflation, exchange rate and stock prices. While for stock prices, there is unidirectional result from stock prices to GOP. This means the economic growth is affected by the fluctuation of stock prices whereas the stock prices are not suggested to predict the growth of GOP. In conclusion, the stock price is a good economic indicator to be emphasized by the Government financial policy to stabilize the economic growth. Universiti Malaysia Sarawak, (UNIMAS) 2013 Thesis http://ir.unimas.my/id/eprint/9087/ http://ir.unimas.my/id/eprint/9087/3/Boon%20Siaw%20Khim%20ft.pdf text en validuser masters Universiti Malaysia Sarawak, (UNIMAS) Faculty of Economics and Business
institution	Universiti Malaysia Sarawak
collection	UNIMAS Institutional Repository
language	English
topic	HB Economic Theory
spellingShingle	HB Economic Theory Boon, Siaw Khim The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia
description	The purpose of this study is to investigate the relationship between inflation, exchange rate and stock prices toward GOP in Malaysia as less similar studies were found. Through this study, the existence of bidirectional relationships of inflation, exchange rate and stock prices to GOP were detennined as the interaction between these variables are importance as indicator for the health of economy in MalaYSia.) This study was carried out using quarterly time series data from period of 2000 to 2011 in where GOP as dependent variable while inflation (CPI), exchange rate (NEER) and stock prices (SP) as independent variables. The empirical analysis choose were Unit Root test, Johansen Cointegration test, Granger Causality test and Vector Error Correction Model. The result for inflation and exchange rate to GOP was not significant as well as GOP does not Granger cause inflation, exchange rate and stock prices. While for stock prices, there is unidirectional result from stock prices to GOP. This means the economic growth is affected by the fluctuation of stock prices whereas the stock prices are not suggested to predict the growth of GOP. In conclusion, the stock price is a good economic indicator to be emphasized by the Government financial policy to stabilize the economic growth.
format	Thesis
qualification_level	Master's degree
author	Boon, Siaw Khim
author_facet	Boon, Siaw Khim
author_sort	Boon, Siaw Khim
title	The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia
title_short	The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia
title_full	The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia
title_fullStr	The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia
title_full_unstemmed	The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia
title_sort	relationship between inflation, exchange rate and stock prices toward gdp in malaysia
granting_institution	Universiti Malaysia Sarawak, (UNIMAS)
granting_department	Faculty of Economics and Business
publishDate	2013
url	http://ir.unimas.my/id/eprint/9087/3/Boon%20Siaw%20Khim%20ft.pdf
_version_	1783728028075950080

The relationship between inflation, exchange rate and stock prices toward GDP in Malaysia

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