UUM Repository | Universiti Utara Malaysian Institutional Repository
FAQs | Feedback | Search Tips | Sitemap

The effects of oil price changes and exchange rate volatility on unemployment: Evidence from Malaysia


Shaari, Mohd Shahidan and Hussain, Nor Ermawati and Abdul Rahim, Hafizah (2013) The effects of oil price changes and exchange rate volatility on unemployment: Evidence from Malaysia. International Journal of Research in Business and Social Science, 2 (4). pp. 72-83. ISSN 2147- 4478

[img]
Preview
PDF
Available under License Creative Commons Attribution.

Download (385kB) | Preview

Abstract

The study aims to examine the effects of oil price and exchange rate on unemployment in Malaysia.The empirical analysis commence by analyzing the time series property of data. The Johansen VAR-based co-integration technique was applied to examine the long run relationship between exchange rate, oil price and unemployment and found the long run relationship does exist.The vector error correction model was performed to check the short run dynamics and found that the short run dynamics are influenced by the estimated long run equilibrium. Granger causality was done and found that oil price does not affect unemployment but exchange rate has an influence on unemployment.Therefore, putting the exchange rate under control should be implemented to control unemployment.

Item Type: Article
Uncontrolled Keywords: Oil Price; Exchange Rate; Unemployment
Subjects: H Social Sciences > HJ Public Finance
Divisions: Institute for Management and Business Research (IMBRe)
Depositing User: Mrs. Norazmilah Yaakub
Date Deposited: 21 Apr 2014 08:58
Last Modified: 20 Apr 2016 03:00
URI: http://repo.uum.edu.my/id/eprint/10726

Actions (login required)

View Item View Item