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The Dynamic Relationship between Energy Consumption and Level of Unemployment Rates in Malaysia: A Time Series Analysis Based on ARDL Estimation

Author

Listed:
  • Halimahton Borhan

    (Faculty of Business and Management, Universiti Teknologi MARA Malaysia, Melaka City Campus, Malaysia)

  • Abdul Rahim Ridzuan

    (Faculty of Business and Management, Universiti Teknologi MARA, Alor Gajah Campus, Malaysia; Faculty of Economics and Business, Universitas Negeri Malang, Indonesia; Institute for Big Data Analytics & Artificial Intelligence, Universiti Teknologi MARA Malaysia; Centre for Economic Development and Policy, Universiti Malaysia Sabah, Malaysia; Institute for Research on Socio-Economic Policy, Universiti Teknologi MARA, Malaysia)

  • Mohamad Idham Md Razak

    (Faculty of Business and Management, Universiti Teknologi MARA, Jasin Campus, Malaysia; Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia, Malaysia.)

  • Rozita Naina Mohamed

    (Department of Entrepreneurship & Marketing Studies, Faculty of Business & Management, Universiti Teknologi MARA, Puncak Alam Campus, 42300 Selangor Darul Ehsan, Malaysia)

Abstract

Unemployment rates is a social economic problem that needs further attention in most country in the world including Malaysia as it affects the citizen s wellbeing. The studies on the macroeconomic determinants such as energy consumption for unemployment rates is hardly find in the previous studies. Higher energy consumption will usually lead to lower unemployment rates because people need to find a job and pay their bills. In these papers, we aim to investigates more macroeconomic variables impacts such as foreign investment, domestic investment, trade liberalization, inflation, urbanization, economic growth, corruption, besides energy consumption on level of unemployment rates for Malaysia. The paper utilized ARDL estimation based on annul data starting from 1984 until 2020. The outcomes revelas a mix expected sign between the independent variable and the dependent variables for the long run. Based on energy consumption, it is found that is also negatively influences the level of unemployment rates in the short run but not in the long run. The list of possible policy recommendation is highlighted at the end of this paper.

Suggested Citation

  • Halimahton Borhan & Abdul Rahim Ridzuan & Mohamad Idham Md Razak & Rozita Naina Mohamed, 2023. "The Dynamic Relationship between Energy Consumption and Level of Unemployment Rates in Malaysia: A Time Series Analysis Based on ARDL Estimation," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 207-214, March.
    • Handle: RePEc:eco:journ2:2023-02-22
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    References listed on IDEAS

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    1. Raihan, Asif & Voumik, Liton Chandra & Akter, Salma & Ridzuan, Abdul Rahim & Fahlevi, Mochammad & Aljuaid, Mohammed & Saniuk, Sebastian, 2024. "Taking flight: Exploring the relationship between air transport and Malaysian economic growth," Journal of Air Transport Management, Elsevier, vol. 115(C).

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    More about this item

    Keywords

    unemployment; energy consumption; ARDL;
    All these keywords.

    JEL classification:

    • E00 - Macroeconomics and Monetary Economics - - General - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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