A study on how foreign exchange (forex) market, world oil price and stock market index influence the stability of Malaysia’s economic growths / Wan Nor Izura Wan Ismail

The focus of the study is to measure the relationship between independent variables (F O R E X market, world oil price, stock market index) and dependent variable (economic growths). This study is based on secondary data that has been collected from Bursa Malaysia, Bank Negara Malaysia (B NM ), Depa...

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Bibliographic Details
Main Author: Wan Ismail, Wan Nor Izura
Format: Student Project
Language:English
Published: 2006
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/41483/1/41483.pdf
https://ir.uitm.edu.my/id/eprint/41483/
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Summary:The focus of the study is to measure the relationship between independent variables (F O R E X market, world oil price, stock market index) and dependent variable (economic growths). This study is based on secondary data that has been collected from Bursa Malaysia, Bank Negara Malaysia (B NM ), Department of Statistic and O P E C in quarterly basis, ranging from the year 1991 to 2005 in order to see the trend within the period. Since the study aims to determine the relationship between those independent variables with the economic growth, the researcher has used 3 methods of regression which are Simple Linear Regression Model, Multiple Linear Regression Model and Pearson Coefficient Correlation. T-Statistic is a correct and reliable test to measure the close relationship between dependent and independent variables. Thus , from Simple Linear Regression, by using the t-test indicates that U S Dollar, Singapore Dollar and KfLCI involved in this study have no relationship with economic growths. However, using Multiple Regression Model, by using t-test, KLCI and world oil price has significant relationship with economic growths. Meanwhile by using Pearson Correlation Coefficient, all independent variables have strong positive correlation with economic growths except KLCI which has a weak positive correlation. Thus , from the result we can conclude that the world oil price is the most significant factor in influencing our economic growths.