The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification

The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification

This study aimed to examine the effect of oil price shocks (world and domestic) on GDP in Malaysia from 1987 to 2009, using linear and nonlinear specification of oil price shocks. This study also examines the effect of world oil price on domestic petrol price. Results of the estimated multiple regre...

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Main Author: Noor Aida, Noh
Format: Thesis
Language:eng
Published: 2011
Subjects:
HC Economic History and Conditions
Online Access:https://etd.uum.edu.my/3693/1/s806319.pdf
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id my-uum-etd.3693
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
advisor Lim, Hock Eam
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Noor Aida, Noh
The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification
description This study aimed to examine the effect of oil price shocks (world and domestic) on GDP in Malaysia from 1987 to 2009, using linear and nonlinear specification of oil price shocks. This study also examines the effect of world oil price on domestic petrol price. Results of the estimated multiple regression model indicates that the world oil price have significant impact on the Malaysia’s domestic petrol price. However, this impact is only partially. Obviously, it can be seen that either in the linear or nonlinear specification, the oil price shocks (domestic or world) do not have significant effects on GDP. It is only shocks on GDP will affect GDP itself. This implies that to increase GDP, innovation, technologies, and policies that able to increase productivities (which give a shock to GDP) will increase the GDP of Malaysia. Other policy implications and suggestions are also discussed.
format Thesis
qualification_name masters
qualification_level Master's degree
author Noor Aida, Noh
author_facet Noor Aida, Noh
author_sort Noor Aida, Noh
title The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification
title_short The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification
title_full The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification
title_fullStr The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification
title_full_unstemmed The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification
title_sort oil price shocks and gdp in malaysia: linear and nonlinear specification
granting_institution Universiti Utara Malaysia
granting_department College of Arts and Sciences (CAS)
publishDate 2011
url https://etd.uum.edu.my/3693/1/s806319.pdf
_version_ 1747827627537727488
spelling my-uum-etd.36932016-04-27T07:15:22Z The Oil Price Shocks and GDP in Malaysia: Linear and Nonlinear Specification 2011 Noor Aida, Noh Lim, Hock Eam College of Arts and Sciences (CAS) College of Arts and Sciences HC Economic History and Conditions This study aimed to examine the effect of oil price shocks (world and domestic) on GDP in Malaysia from 1987 to 2009, using linear and nonlinear specification of oil price shocks. This study also examines the effect of world oil price on domestic petrol price. Results of the estimated multiple regression model indicates that the world oil price have significant impact on the Malaysia’s domestic petrol price. However, this impact is only partially. Obviously, it can be seen that either in the linear or nonlinear specification, the oil price shocks (domestic or world) do not have significant effects on GDP. It is only shocks on GDP will affect GDP itself. This implies that to increase GDP, innovation, technologies, and policies that able to increase productivities (which give a shock to GDP) will increase the GDP of Malaysia. Other policy implications and suggestions are also discussed. 2011 Thesis https://etd.uum.edu.my/3693/ https://etd.uum.edu.my/3693/1/s806319.pdf text eng validuser masters masters Universiti Utara Malaysia Aliyu, & Shehu Usman Rano. (2009). Oil price shocks and the Macroeconomy of Nigeria:a non-linear approach (unpublished). Barsky, R. B., & Kilian, L. (2004). Oil and the Macroeconomiy since the 1070s. Journal of Economic Perspectives, 18, 115–134. Berument, H., & Ceylan, N. B. (2010). The impact of oil price shocks on the economic growth of the selected MENA countries. Cologni, A. , & Manera, M. (2009). The asymmetric effects of oil shocks on output growth: a Markov-Switching Analysis for the G-7 Countries. Economic Modelling, 26, 1-29. Cunado, J. & F. Perez de Gracia. (2005). Oil prices, economic activity and inflation: evidence for some Asian countries. Energy Economics, 45, 65-83. Demonstrasi Pembentukan Kenaikan Harga Minyak. (2008, June 28). Harakah. Department of Statistic Malaysia. (2009). Retrieved (December 3, 2010): Gross Domestic Product: http://www.statistics.gov.my Gujarati, D. N. (2003). Basic Econometrics, 4th ed., McGraw Hill, New York. Guo, J. (2008). The impact of oil price shock and exchange rate volatility on economic growth: a comparative analysis for Russia, Japan and China. Research Journal of International Studies, 98-107. Hamilton, J. D. (1983). Oil and the Macroeconomy since World War II. Journal of Political Economy, 92(2), 228-248. Hamilton, J. D. (1996). This is what happened to the oil price macroeconomy relationship. Journal of Monetary Economics, 38(2), 215-220. Hamilton, J. D. (2003). What is an oil Shock. Journal of Econometrics, 113(2), 363-396. Jee, H. S. B., Lau, E., Puah, C. H., & Shazali Abu Mansor (2010). Domestic fuel price and economic sectors in malaysia : A future of renewable energy?. Universiti Malaysia Sarawak Lim, H. E., & Shri Dewi Applanaidu. (2008). Teori ekonometrik dengan aplikasi SAS. Sintok. Universiti Utara Malaysia. Mork, K., Olsen, O., & Mysen, H. T. (1994). Macroeconomic responses to oil price increases and decreases in seven OECD countries. Energy Journal, 15, 15-38. Nizam Ahmat & Mastura Ma’in. (2008). Impak kejutan harga minyak terhadap output dan tingkat harga. Universiti kebangsaan Malaysia (unpublished) Nornaliza Abu. (2009). Kejutan Harga Minyak dan subsidi minyak di Malaysia: kesan keatas pertumbuhan ekonomi. Sintok. Universiti Utara Malaysia. Papapetrou, E. (2009). Oil price asymmetric shocks and economic activity: the case of Greece. Raymond, J. E., & Rich, R. W. (1997). Oil and the Macroeconomy: A Markov State-Switching Approach. Journal of Money, Credit, and Banking, 29(2). Rohana Kamaruddin & Tajol Ariffin Masron. (2010). Sources of growth in manufacturing sector in Malaysia: evidence from ARDL structural decomposition analysis. Asian Academy of Management Journal, 45(1), 99-116. Rotemberg, J. J., & Woodford, M. (1996). Imperfect competition and the effects of energy price increases on economic activity. Journal of Money, Credit and Banking, 28, 549-577. Roubini, N., & Setser, B. (2004). The effects of recent oil price shock on the U.S. and global economy. WWW user servey. (n.d). Retrieved November 27, 2010, from http://ms.wikipedia.org/wiki/Harga_minyak_Malaysia Yip, C. Y., Lim, H. E., & Asan Ali Golam Hassan. (2009). Proceedings of the 5th Asian Mathematical Conference, Malaysia 2009: The impacts of oil shocks on Malaysia’s GDP growth. Yu, H. (2007). Impacts of higher crude oil price and changing Macroeconomics conditions on output growth in Germany. International Research Journal of Finance and Economics, (11). Zhang, D. (2008). Oil shock and economic growth in Japan: a nonlinear approach. Energy Economics, 30(5), 2374-90.

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