An analysis of price disparity: Peninsular Malaysia and Sabah
This study examines the price differences between Peninsular Malaysia and Sabah from 2004 using quantitative and qualitative methods. For quantitative research, we employ disaggregate monthly consumer price indices for nine types of goods and services. Based on the Johansen co-integration test,...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/16871/1/jeko_54%282%29-5.pdf http://journalarticle.ukm.my/16871/ https://www.ukm.my/fep/jem/content/2020-2.html |
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| Summary: | This study examines the price differences between Peninsular Malaysia and Sabah from 2004 using quantitative
and qualitative methods. For quantitative research, we employ disaggregate monthly consumer price indices for
nine types of goods and services. Based on the Johansen co-integration test, the results reveal that the long-run
relationship only exists for transport group. The findings using Granger pair-wise causality test indicated that the
prices in Peninsular Malaysia do not determined the price in Sabah. Qualitative research was further conducted via
interviews with stakeholders of shipping providers, port authority, government and special interest group show that
the price disparity between Peninsular Malaysia and Sabah occurred due to trade imbalance, sluggish economic
activities, poor accessibility between port and retailers, insufficient infrastructure and technical facilities and political
sentiment. |
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