Statistical non-parametric correlation diagnostic for dynamic behavior of Malaysian currency with world crude oil price
In 2015, US production of crude oil rose to 9.48 million barrels per day. Therefore, the crude oil price on international level is decreasing because there is more supply than demand. This situation is affecting Malaysian economy because main income of Malaysia depends on commodity namely crude oil...
Saved in:
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
2017
|
| Subjects: | |
| Online Access: | http://repo.uum.edu.my/26301/1/IJECM%20v%205%202017%201%2013.pdf http://repo.uum.edu.my/26301/ http://ijecm.co.uk/volume-v-issue-5/ |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Universiti Utara Malaysia |
| Language: | English |
| Summary: | In 2015, US production of crude oil rose to 9.48 million barrels per day. Therefore, the crude oil
price on international level is decreasing because there is more supply than demand. This situation is affecting Malaysian economy because main income of Malaysia depends on commodity namely crude oil. Therefore, this study tries to find the correlation between Exchange rate of Malaysian Ringgit (USD to MYR) and crude oil price. The data selected for this study is from 2010 until 2016. The statistical correlation methods are Kendall Tau and Spearman rho because the distribution of the data is follows non-normal distribution. The result shows the association coefficient is =0.647 with p-value is 0.000 for Kendall Tau correlation.
Then, the result also shows the association coefficient is =0.840 with p-value is 0.000 for
Spearman rho correlation .These findings implied that there is highly significant positive
correlation of Malaysia exchange rate (USD to MYR) with crude oil price. The impact of this
study is to inform to the economist that exchange rate of Malaysia Ringgit can be forecast and
monitor by referring to crude oil price dynamic pattern. |
|---|