The relationship of price of main commodities of Malaysia towards its GDP growth / Adi Zakwan Salimin

• Main Author: Salimin, Adi Zakwan
• Format: Student Project
• Language: English
• Published: 2018
• Subjects: Economics; Consumption (Economics); Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
• Online Access: http://ir.uitm.edu.my/id/eprint/39307/1/39307.pdf; http://ir.uitm.edu.my/id/eprint/39307/
• Institution: Universiti Teknologi Mara

This research is to examine the relationship of price of commodities which are palm oil, crude oil and rubber towards the economic growth in Malaysia. The period used from first quarter of year 2000 until third quarter of the year 2016. The proxy for economic growth is the GDP growth rate of Malaysia. Autoregressive Distributed Lag (ARDL) and Error Correction Model that were derived from ARDL were used in this research in order to find the long run and short run relationship. Thus, the test result shows that there is positive short run relationship between GDP growth rate of Malaysia and price of palm oil while price of rubber and GDP growth rate has negative short run relationship.