Research

Nur Farah Zafirah Zulkiflee · Nurbaizura Borhan · Mohd Fikri Hadrawi ·Pertanika Journal of Social Science and Humanities ·2022

An increase in the crime rate may jeopardize a country’s development and economic growth. Thus, understanding the relationship between crime and a few determinants is crucial in sustaining the economic growth in Malaysia. The four determinants used in this research are economic growth, population, education level, and inflation rate. The data covers the period from 1984 to 2019, and Autoregressive Distributed Lag (ARDL) modeling approaches were used in this research. The findings showed that only the population has a significant positive impact on crime rates for long-term and short-term relationships. Meanwhile, economic growth and education level have a significant long-term positive effect on the crime rate. On the other hand, the inflation rate did not significantly impact the crime rate in long-term and short-term relationships. Interestingly, it was found in the findings that the crime rate and population showed a bidirectional causal relationship indicating that the past population values are useful for a better prediction of the current crime rate and vice versa. Thus, the Malaysian government should encourage people to cooperate with the enforcement authorities to deter crime for future environmental safety effectively.

Abdelkader O.El Alaoui · Hashim Bin Jusoh · Sheila Ainon Yussof · Mohamed Hisham Hanifa ·Quarterly Review of Economics and Finance ·2019

This paper, for the best of our knowledge, is the first attempt to assess the role of money in the Malaysian economy using wavelet techniques. To do so, a macroeconomic model-based policy rules has been formulated. In relation with the recurring financial crises, we analyse the relationship between the quantity of money, interest rate, inflation, exchange rate, index of industrial production and equity indices, in the case of Malaysia. In this analysis, UK economy aggregates are taken as benchmark. Therefore, the relationships between monetary policy variables and macroeconomic variables are evolving with time and have non-homogeneous trends across different time scales. Some strong correlations have been found in regard to Malaysian Monetary Policy using, major monetary aggregates; the quantity of Money, the interest rate and the exchange rate inducing some lead-lag interactions between those key variables. In addition, we analyse the effect of LIBOR on Malaysian interest rate (KLIBOR). We found that the KLIBOR is lagging behind the LIBOR in most of the time. In the end, some lessons will be drawn for the monetary policy in Malaysia, in terms of the high impact of the role of money and the expected implications regarding an effective Islamic monetary policy.

Sabariah Nordin · Afiruddin Tapa · Hamdan Al-Jaifi ·International Journal of Supply Chain Management ·2018

This study intends to identify the long run relationships between oil price, exchange rates, stock market and interest rate in the context of Malaysia. Weekly data from 1 January 2006 until 22 April 2018 were used. Unit root tests of ADF and PP reveal that all variables are non-stationary at level and become integrated and stationary at first differential series, hence ratify that these variables can be used for further long run investigation. An ARDL bound test and Johansen and Juselius cointegration test suggest the existence of actual long-run relationship between oil price, stock price index, exchange rate and interest rate in Malaysia. Results of Granger causality indicates the presence of unidirectional causality between oil prices and Malaysian stock market running from oil prices to the stock price index. Results also suggest that there is a presence of bidirectional causality between interest rate and oil prices which means causality is running from interest rate to oil prices and from oil prices to the interest rate. Lastly, the results also propose that there is an existence of uni-directional causality between exchange rate and oil prices, running from the exchange rate to the oil prices at 10 percent significance level. Even the results of wavelet coherence approach confirm long run relationships between the underlying variables.