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The Relationship between Macroeconomic Variables and Passenger Vehicle Sales in Malaysia

Author

Listed:
  • Fidlizan Muhammad
  • Mohd Yahya Mohd Hussin
  • Azila Abdul Razak
  • Norimah Rambeli
  • Gan Pei Tha

Abstract

This study aims to analyze the long-term relationship and causal relationship between macroeconomic variables and passenger vehicle sales in Malaysia. In this study, the monthly time series data from April; 2004 to December; 2010 is used. To achieve the objectives, the Vector Autoregressive (VAR) estimation method is applied. Results show that there is no significant long-term equilibrium relationship between sales of passenger vehicles with macroeconomic variables. For the short term, only significant IPI variable affects the growth of passenger vehicle sales in Malaysia.

Suggested Citation

  • Fidlizan Muhammad & Mohd Yahya Mohd Hussin & Azila Abdul Razak & Norimah Rambeli & Gan Pei Tha, 2013. "The Relationship between Macroeconomic Variables and Passenger Vehicle Sales in Malaysia," Business and Economic Research, Macrothink Institute, vol. 3(2), pages 115-126, December.
    • Handle: RePEc:mth:ber888:v:3:y:2013:i:2:p:115-126
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    References listed on IDEAS

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    1. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
    2. Mansor Ibrahim, 2007. "The role of the financial sector in economic development: the Malaysian case," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 54(4), pages 463-483, December.
    3. Hamilton, James D, 1988. "A Neoclassical Model of Unemployment and the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 96(3), pages 593-617, June.
    4. Pindyck, Robert S & Rotemberg, Julio J, 1983. "Dynamic Factor Demands and the Effects of Energy Price Shocks," American Economic Review, American Economic Association, vol. 73(5), pages 1066-1079, December.
    5. Peter Wad & V.G.R. Chandran Govindaraju, 2011. "Automotive industry in Malaysia: an assessment of its development," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 11(2), pages 152-171.
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    Citations

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    Cited by:

    1. Rabiul Islam & Ahmad Bashawir Abdul Ghani & Bobby Kusuma & Eric Teh Yew Hong, 2016. "An Analysis of Factors that Affecting the Number of Car Sales in Malaysia," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 872-882.
    2. Evanthia A. Nanaki, 2018. "Measuring the Impact of Economic Crisis to the Greek Vehicle Market," Sustainability, MDPI, vol. 10(2), pages 1-12, February.
    3. Rabiul Islam & Ahmad Bashawir Abdul Ghani & Bobby Kusuma & Eric Teh Yew Hong, 2016. "An Analysis of Factors that Affecting the Number of Car Sales in Malaysia," International Review of Management and Marketing, Econjournals, vol. 6(4), pages 872-882.
    4. Eric Kateta Tshiakambila & Joseph Chisasa, 2017. "Food Inflation and Passenger Vehicle Purchases in South Africa: Cointegration, Short Run Dynamics and Causality," Journal of Economics and Behavioral Studies, AMH International, vol. 9(5), pages 122-134.
    5. Homolka, Lubor & Ngo, Vu Minh & Pavelková, Drahomíra & Le, Bach Tuan & Dehning, Bruce, 2020. "Short- and medium-term car registration forecasting based on selected macro and socio-economic indicators in European countries," Research in Transportation Economics, Elsevier, vol. 80(C).

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    More about this item

    Keywords

    Passenger Vehicle Sales; Macroeconomic; VAR;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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