Staff View: The co-movement between commodity prices and the economic growth of Malaysia

The co-movement between commodity prices and the economic growth of Malaysia

Research Originality: This research is an initial attempt to unveil the structure of the dynamic relationship between commodity prices and Malaysia's economic growth at various frequencies and moments in time. Research Objectives: This paper investigates the co-movement and leadlag relationship...

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Main Authors:	Saizal Pinjaman, Shairil Izwan Taasim, Wong Sing Yun, Jain Yassin
Format:	Article
Language:	English English
Published:	ResearchGate 2024
Subjects:	HB1-3840 Economic theory. Demography HB848-3697 Demography. Population. Vital events
Online Access:	https://eprints.ums.edu.my/id/eprint/40912/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/40912/2/FULL%20TEXT.pdf https://eprints.ums.edu.my/id/eprint/40912/ https://doi.org/10.15408/etk.v23i1.34368
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id	my.ums.eprints.40912
record_format	eprints
spelling	my.ums.eprints.409122024-09-02T08:09:00Z https://eprints.ums.edu.my/id/eprint/40912/ The co-movement between commodity prices and the economic growth of Malaysia Saizal Pinjaman Shairil Izwan Taasim Wong Sing Yun Jain Yassin HB1-3840 Economic theory. Demography HB848-3697 Demography. Population. Vital events Research Originality: This research is an initial attempt to unveil the structure of the dynamic relationship between commodity prices and Malaysia's economic growth at various frequencies and moments in time. Research Objectives: This paper investigates the co-movement and leadlag relationship between commodity prices and the economic growth of Malaysia at different frequencies and moments in time. Research Methods: The relationship between the variables is studied using monthly data from 2015 to 2022 and the time-frequency analysis of the Continuous Wavelet Transformation model. This method analyses the direction and lead-lag relationship between two-time series to determine which variables are leading and the direction of their co-movement. Empirical Result: The relationships between commodity prices and economic growth are varied depending on frequency and moments in time. In the short run, most commodity prices exhibit an inverse relationship led by economic growth. Meanwhile, a positive comovement with economic growth is indicated for most commodity prices in the medium run. These variables mostly move in unison, except for rubber and palm oil, which led to the relationship. Nevertheless, the co-movement of commodity prices and economic growth showed a diminishing magnitude in the long run. Implications: Malaysia's policy frameworks should consider the economic dynamic responses towards commodity prices in facilitating its economic growth. In addition, efforts should be made to diversify economic activities, reducing dependence on commodities in the country's trade basket. ResearchGate 2024 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/40912/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/40912/2/FULL%20TEXT.pdf Saizal Pinjaman and Shairil Izwan Taasim and Wong Sing Yun and Jain Yassin (2024) The co-movement between commodity prices and the economic growth of Malaysia. Etikonomi, 23 (1). pp. 1-16. ISSN 1412-8969 https://doi.org/10.15408/etk.v23i1.34368
institution	Universiti Malaysia Sabah
building	UMS Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	Universiti Malaysia Sabah
content_source	UMS Institutional Repository
url_provider	http://eprints.ums.edu.my/
language	English English
topic	HB1-3840 Economic theory. Demography HB848-3697 Demography. Population. Vital events
spellingShingle	HB1-3840 Economic theory. Demography HB848-3697 Demography. Population. Vital events Saizal Pinjaman Shairil Izwan Taasim Wong Sing Yun Jain Yassin The co-movement between commodity prices and the economic growth of Malaysia
description	Research Originality: This research is an initial attempt to unveil the structure of the dynamic relationship between commodity prices and Malaysia's economic growth at various frequencies and moments in time. Research Objectives: This paper investigates the co-movement and leadlag relationship between commodity prices and the economic growth of Malaysia at different frequencies and moments in time. Research Methods: The relationship between the variables is studied using monthly data from 2015 to 2022 and the time-frequency analysis of the Continuous Wavelet Transformation model. This method analyses the direction and lead-lag relationship between two-time series to determine which variables are leading and the direction of their co-movement. Empirical Result: The relationships between commodity prices and economic growth are varied depending on frequency and moments in time. In the short run, most commodity prices exhibit an inverse relationship led by economic growth. Meanwhile, a positive comovement with economic growth is indicated for most commodity prices in the medium run. These variables mostly move in unison, except for rubber and palm oil, which led to the relationship. Nevertheless, the co-movement of commodity prices and economic growth showed a diminishing magnitude in the long run. Implications: Malaysia's policy frameworks should consider the economic dynamic responses towards commodity prices in facilitating its economic growth. In addition, efforts should be made to diversify economic activities, reducing dependence on commodities in the country's trade basket.
format	Article
author	Saizal Pinjaman Shairil Izwan Taasim Wong Sing Yun Jain Yassin
author_facet	Saizal Pinjaman Shairil Izwan Taasim Wong Sing Yun Jain Yassin
author_sort	Saizal Pinjaman
title	The co-movement between commodity prices and the economic growth of Malaysia
title_short	The co-movement between commodity prices and the economic growth of Malaysia
title_full	The co-movement between commodity prices and the economic growth of Malaysia
title_fullStr	The co-movement between commodity prices and the economic growth of Malaysia
title_full_unstemmed	The co-movement between commodity prices and the economic growth of Malaysia
title_sort	co-movement between commodity prices and the economic growth of malaysia
publisher	ResearchGate
publishDate	2024
url	https://eprints.ums.edu.my/id/eprint/40912/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/40912/2/FULL%20TEXT.pdf https://eprints.ums.edu.my/id/eprint/40912/ https://doi.org/10.15408/etk.v23i1.34368
_version_	1809140101823856640
score	13.211869

The co-movement between commodity prices and the economic growth of Malaysia

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