Impulse response analysis for Malaysian construction sector by vector error correction model

The Malaysian construction sector (MCS) is a signiicant sector of the Malaysian economy. It plays a pivotal role in the social economic development. This study focusses on empirical examination of MCS, and develops a time series model equation for MCS under vector error correction (VEC) system. The...

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Main Authors: Khan, R.A., Liew, M.S., Zawawi, N.A.W.A.
Format: Article
Institution: Universiti Teknologi Petronas
Record Id / ISBN-0: utp-eprints.26317 /
Published: Construction Research Institute of Malaysia 2015
Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84976292930&partnerID=40&md5=48258826a24b0997919634135fabe2bb
http://eprints.utp.edu.my/26317/
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spelling utp-eprints.263172021-08-30T07:17:11Z Impulse response analysis for Malaysian construction sector by vector error correction model Khan, R.A. Liew, M.S. Zawawi, N.A.W.A. The Malaysian construction sector (MCS) is a signiicant sector of the Malaysian economy. It plays a pivotal role in the social economic development. This study focusses on empirical examination of MCS, and develops a time series model equation for MCS under vector error correction (VEC) system. The estimated model is used to develop the impulse response functions (IRFs) to examine the behavior and response of MCS against the positive shocks produced in other major sectors of the economy and vice versa. The results suggest that the MCS is relatively small in size and contribution to GDP; however, it has strong correlation and long and short run association with all major sectors of the economy. The speed of adjustment of MCS toward long run equilibrium is 30 . It has positive response against the shock produced in other sectors of the economy except manufacturing sector. The most sensitive sector for MCS is mining and quarrying. The MCS economic activity is at peak in the third quarter of each year. This study is useful for government of Malaysia, economic planning unit, construction irms and other interested parties of the construction sect.or. Construction Research Institute of Malaysia 2015 Article NonPeerReviewed https://www.scopus.com/inward/record.uri?eid=2-s2.0-84976292930&partnerID=40&md5=48258826a24b0997919634135fabe2bb Khan, R.A. and Liew, M.S. and Zawawi, N.A.W.A. (2015) Impulse response analysis for Malaysian construction sector by vector error correction model. Malaysian Construction Research Journal, 16 (1). pp. 1-14. http://eprints.utp.edu.my/26317/
institution Universiti Teknologi Petronas
collection UTP Institutional Repository
description The Malaysian construction sector (MCS) is a signiicant sector of the Malaysian economy. It plays a pivotal role in the social economic development. This study focusses on empirical examination of MCS, and develops a time series model equation for MCS under vector error correction (VEC) system. The estimated model is used to develop the impulse response functions (IRFs) to examine the behavior and response of MCS against the positive shocks produced in other major sectors of the economy and vice versa. The results suggest that the MCS is relatively small in size and contribution to GDP; however, it has strong correlation and long and short run association with all major sectors of the economy. The speed of adjustment of MCS toward long run equilibrium is 30 . It has positive response against the shock produced in other sectors of the economy except manufacturing sector. The most sensitive sector for MCS is mining and quarrying. The MCS economic activity is at peak in the third quarter of each year. This study is useful for government of Malaysia, economic planning unit, construction irms and other interested parties of the construction sect.or.
format Article
author Khan, R.A.
Liew, M.S.
Zawawi, N.A.W.A.
spellingShingle Khan, R.A.
Liew, M.S.
Zawawi, N.A.W.A.
Impulse response analysis for Malaysian construction sector by vector error correction model
author_sort Khan, R.A.
title Impulse response analysis for Malaysian construction sector by vector error correction model
title_short Impulse response analysis for Malaysian construction sector by vector error correction model
title_full Impulse response analysis for Malaysian construction sector by vector error correction model
title_fullStr Impulse response analysis for Malaysian construction sector by vector error correction model
title_full_unstemmed Impulse response analysis for Malaysian construction sector by vector error correction model
title_sort impulse response analysis for malaysian construction sector by vector error correction model
publisher Construction Research Institute of Malaysia
publishDate 2015
url https://www.scopus.com/inward/record.uri?eid=2-s2.0-84976292930&partnerID=40&md5=48258826a24b0997919634135fabe2bb
http://eprints.utp.edu.my/26317/
_version_ 1741197118848106496
score 11.62408

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