Transportation Dynamic Behaviour of Structural Break and Consumer Price Index
Siti Marsila Mhd. Ruslan1, Gairuzazmi Mat Ghani2, HanizaKhalid3, Kasypi Mokhtar4
1Siti Marsila Mhd. Ruslan, School of Maritime Business & Management, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, Malaysia,
2Gairuzazmi Mat Ghani, Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia,
3HanizaKhalid, Department of Economics, Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia,
4Kasypi Mokhtar, School of Maritime Business & Management, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Terengganu, Malaysia,
Manuscript received on 01 March 2019 | Revised Manuscript received on 07 March 2019 | Manuscript published on 30 July 2019 | PP: 283-290 | Volume-8 Issue-2, July 2019 | Retrieval Number: A3521058119/19©BEIESP | DOI: 10.35940/ijrte.A3521.078219
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This paper studies the dynamic behaviour of transportation price in Peninsular Malaysia and Sabah from 2004 to 2015 using disaggregated monthly price data of consumer price index (CPI). For that, unit root tests and cointegration tests with structural breaks are incorporated. The findings indicated that (i) both Zivot and Andrews unit root test and Perron unit root test provided fairly similar results; most of the break points occurred in 2008, (ii) the variables cointegrate in the Johansen cointegration test which indicates that there is a long-run relationship and (iii) the Gregory and Hansen test also demonstrated some form of cointegration with structural break(s), especially in 2008. Overall, this study intends to match the structural break points with the comparable critical economic events.
Keywords: CPI; Structural Break; Economic Policy
Scope of the Article: Social Sciences