IDEAS home Printed from https://ideas.repec.org/a/taf/cposxx/v38y2017i4p375-391.html
   My bibliography  Save this article

Measuring the economic impacts of recent oil price shocks on oil-dependent economy: evidence from Malaysia

Author

Listed:
  • Ibrahim Kabiru Maji
  • Mohd Yusof Saari
  • Muzafar Shah Habibullah
  • Chakrin Utit

Abstract

This paper examines the economy-wide impacts of recent oil price shocks on the Malaysian economy. To achieve this objective, an integrated methodological framework that combines econometric and input–output models is utilized to assess the impacts of an oil price shock on tax revenues, employment, labor income and gross domestic product (GDP). Our results reveal that the recent oil price shocks significantly affects these macroeconomic variables. The decline in oil prices from 2015 to 2016 reduces tax revenues by 10.5%, lower GDP by 1.9% and increases the unemployment rate by 0.3%. As such, the sharp crunch in oil prices serves as a reminder to policymakers on the vulnerability inherent in overreliance on oil exports and the urgent need to diversify the economy.

Suggested Citation

  • Ibrahim Kabiru Maji & Mohd Yusof Saari & Muzafar Shah Habibullah & Chakrin Utit, 2017. "Measuring the economic impacts of recent oil price shocks on oil-dependent economy: evidence from Malaysia," Policy Studies, Taylor & Francis Journals, vol. 38(4), pages 375-391, July.
    • Handle: RePEc:taf:cposxx:v:38:y:2017:i:4:p:375-391
    DOI: 10.1080/01442872.2017.1320706
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/01442872.2017.1320706
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01442872.2017.1320706?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Damira Keček, 2023. "The Effects of Rising Energy Prices on Inflation in Croatia," Energies, MDPI, vol. 16(4), pages 1-14, February.
    2. Sohag, Kazi & Kalina, Irina & Samargandi, Nahla, 2024. "Oil market cyclical shocks and fiscal stance in OPEC+," Energy, Elsevier, vol. 296(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:cposxx:v:38:y:2017:i:4:p:375-391. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/cpos .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.