TY  - JOUR
T1  - The Relationship Between Gross Domestic Product,
Inflation Rate and Crude Oil Price and KLCI Index
AU - Chin, Low Li AU - Othman, Noor Shahaliza 
JO  - Journal of Engineering and Applied Sciences
VL  - 12
IS  - 6
SP  - 1393
EP  - 1400
PY  - 2017
DA  - 2001/08/19
SN  - 1816-949x
DO  - jeasci.2017.1393.1400
UR  - https://makhillpublications.co/view-article.php?doi=jeasci.2017.1393.1400
KW  - oil price
KW  -inflation rate
KW  -Gross domestic product
KW  -stock market
KW  -VECM
AB  - There are many major issues may affect the stock market index in Malaysia. In this research, the main
objective of our study is to examine and determine the relationship between Malaysia stock market index,
inflation rate, Gross Domestic Product (GDP) and WTI crude oil price. This study adopted the unit root test,
Johansen and Juselius co-integration, granger causality, Vector Error Correction Model (VECM) diagnostic test
and variance decomposition to investigate the quarterly data from 2003-2013. Empirical results indicated that
stock index of Malaysia is positively related with GDP and WTI crude oil price while inverse linkage with
inflation rate in the long run. Furthermore, granger causality result shows that there are two bidirectional
relationship links between inflation rate and stock market index as well as crude oil price and stock market index.
Moreover, inflation rate has the propensity to have greater influence towards the Malaysia stock market
performance compare to others variables.
ER  -