Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration

Mhd. Ruslan, Siti Marsila and Mat Ghani, Gairuzazmi and Khalid, Haniza (2016) Examining price convergence behaviour between Peninsular Malaysia and Sabah & Sarawak: evidence for market integration. In: Persidangan Kebangsaan Ekonomi Malaysia ke 11, 27-28 Jul 2016, Putrajaya.

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Abstract

The purpose of this study is to assess the degree of markets integration within Malaysia by examining price convergence across East and West Malaysia markets. Disaggregate monthly price data (consumer price index) for various categories of goods or services in Peninsular Malaysia, Sabah and Sarawak were utilized from year 2004 to 2015 using ADF unit root test and half-life estimation. Our empirical findings show that there is a price convergence for majority of price commodity groups in Malaysia. The implication of price convergence in Malaysia gives the evidence of market integration among Peninsular Malaysia, Sabah and Sarawak. On the other hand, most of tradable goods prices adjust more rapidly than non-tradable goods when looking at its half-life period.

Item Type:	Conference or Workshop Item (Speech/Talk)
Additional Information:	2565/51484 (ISSN: 2231-962X)
Uncontrolled Keywords:	market integration, consumer price index, price convergence
Subjects:	H Social Sciences > HE Transportation and Communications > HE380 Water transportation H Social Sciences > HF Commerce > HF1021 Commercial geography. Economic geography
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Dr. Haniza Khalid
Date Deposited:	17 Aug 2016 15:34
Last Modified:	17 Aug 2016 15:48
URI:	http://irep.iium.edu.my/id/eprint/51484

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