The Relationship between Macroeconomic Factors and The Performance of Stock Market in Malaysia: The Case of Malaysia Industrial Product and Services Sector

Ya’acob, Fatin Farazh; Akbar, Arizwan; Ghul, Zahirah Hamid; Isamail, Mohamad Zaim; Mokhtar, Nurkhairany Amyra

doi:10.6007/ijarbss/v11-i8/10581

Cited by 2 publications

(3 citation statements)

References 17 publications

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“…This availability of extra money in an economy in the form of broad money gives a boost to the service sector. This outcome is backed by the past study of Ya'acob et al. (2021), as they find that money supply has a positive effect on service sector growth.…”

Section: Long Run Resultsmentioning

confidence: 81%

“…This availability of extra money in an economy in the form of broad money gives a boost to the service sector. This outcome is backed by the past study of Ya'acob et al (2021), as they find that money supply has a positive effect on service sector growth. Since these interrelationships between the variables indicate that there may be multicollinearity between the selected variables.…”

Section: Long Run Resultsmentioning

confidence: 81%

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Analyzing the impact of positive and negative remittance inflow shocks on economic growth of India

Khan

2023

JES

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PurposeThe purpose of this paper is to empirically analyze the impact of remittance inflows on sustained economic growth in India.Design/methodology/approachThis study has taken a time series dataset for the period of 1976–2021, and a nonlinear autoregressive distributed lag model technique (NARDL) has been applied to check the impact of remittance inflows along with other control variables, including broad money and service sector performance, on the sustained economic growth of India.FindingsThe results of the study indicated that in both the short and long runs, any positive shock in remittance inflows has a positive impact on the economic growth of India, while negative shocks do not affect economic growth.Practical implicationsThe economic policymakers of India can use the findings of the study by implementing remittance-friendly policies. Moreover, NITI Aayog, the body working toward achieving sustainable development goals (SDGs) in India, can also use this study as a reference while making strategies to achieve SDG.Originality/valueEconomic growth has always been an area of interest among economists, researchers and policymakers. However, achieving sustained economic growth requires an analysis of those factors that themselves have sustained performance over a long period of time and have the potential to sustain it over the upcoming years. This study has taken remittance inflows as one such factor and investigated its impact on the sustained economic growth of India. At present, there is an evident gap in the literature that very little attention has been given to sustained Indian economic growth. Moreover, there is no study available in which the nonlinear impact of different variables has been tested on the economic growth of India.

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Section: Long Run Resultsmentioning

confidence: 81%

Section: Long Run Resultsmentioning

confidence: 81%

Analyzing the impact of positive and negative remittance inflow shocks on economic growth of India

Khan

2023

JES

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“…Not necessarily, all the economic factors play an important role in stock market performance. A recent study by Ya'acob et al. (2021) revealed that only three variables were significant, while inflation did not seem to have affected the stock market.…”

Section: Existing Literaturementioning

confidence: 92%

Re-examining asymmetric dynamics in the relationship between macroeconomic variables and stock market indices: empirical evidence from Malaysia

Mohnot,

Banerjee,

Ballaj

et al. 2023

JRF

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PurposeThe aim of this research is to re-examine the dynamic linkages between macroeconomic variables and the stock market indices in Malaysia following some transformational changes in the policies and the exchange rate regime.Design/methodology/approachUsing monthly data points for all the economic variables and the stock market index (KLCI Index), the authors applied vector autoregression (VAR) model to examine the relationship. The authors also used impulse response function (IRF) in order to explore the effect of one-unit shock in “X” on “Y” under the VAR environment.FindingsThe authors' study finds a significant relationship between all the macroeconomic variables and the stock market index of Malaysia. The cointegration results indicate a long-term relationship, whereas the vector autoregressive-based impulse response analysis suggests that the Malaysian stock index (KLCI) responds negatively to the money supply, inflation and producer price index (PPI). However, the authors' results indicate a positive response from the stock index to the exchange rate.Research limitations/implicationsThe authors' study's results are based on selected macroeconomic variables and the VAR model. Researchers may find other variables and methods more useful and may provide findings accordingly.Practical implicationsSince the results are quite asymmetric, it would be interesting for the market players, policymakers and regulators to consider the findings and explore appropriate opportunities.Originality/valueWhile the relationship between macroeconomic variables and stock market indices has been widely examined, a significant gap in the literature remains concerning the role of exchange rate variable on the stock market in an emerging economy context.

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The Relationship between Macroeconomic Factors and The Performance of Stock Market in Malaysia: The Case of Malaysia Industrial Product and Services Sector

Cited by 2 publications

References 17 publications

Analyzing the impact of positive and negative remittance inflow shocks on economic growth of India

Analyzing the impact of positive and negative remittance inflow shocks on economic growth of India

Re-examining asymmetric dynamics in the relationship between macroeconomic variables and stock market indices: empirical evidence from Malaysia

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