The Impact of Oil and Liquefied Natural Gas (LNG) Prices on Economic Sectors in Malaysia

Nur Surayya Mohd Saudi and Wong, Hock Tsen (2017) The Impact of Oil and Liquefied Natural Gas (LNG) Prices on Economic Sectors in Malaysia. Journal of BIMP-EAGA Regional Development, 3 (2). pp. 90-100. ISSN 2232-1055

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Abstract

The aim of this paper is to examine the impact of oil and LNG (Liquefied Natural Gas) prices fluctuation to economy sectors in Malaysia. We investigate four economics sectors in Malaysia namely industry, manufacturing, agriculture and services sector. Annual time series data were collected from 1985 to 2015.Econometrics methods like unit root, co-integration, VECM and causality test were tested to identify a long run relationship and causality from energy prices to economic sector. Data for economic sectors and energy prices were extracted from World Bank and Energy Information Administration (EIA). The empirical results found that all series are associated and move together in a long run but there is no short-run dynamics exist. Pairwise Granger causality test suggested that oil and LNG prices affect industrial and manufacturing sectors in Malaysia.

Item Type:	Article
Keyword:	Oil price , GDP economic sectors , LNG , Cointegration , Causality , VECM
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28-9999 Industries. Land use. Labor > HD9000-9999 Special industries and trades > HD9506-9624 Mineral industries. Metal trade
Department:	SCHOOL > School of Business and Economics
Depositing User:	SITI AZIZAH BINTI IDRIS -
Date Deposited:	12 Jul 2022 20:55
Last Modified:	12 Jul 2022 20:55
URI:	https://eprints.ums.edu.my/id/eprint/33132

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