Do soaring global oil prices heat up the housing market? Evidence from Malaysia

Thai-Ha Le

No 2015-8, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: This study analyses the effects of oil price and macroeconomic shocks on the Malaysian housing market using a SVAR framework. The specification of the baseline model is based on standard economic theory. The Gregory-Hansen (GH) cointegration tests reveal that there is no cointegration among the variables of interest. Results from performing Toda-Yamamoto (TY) non-Granger causality tests show that oil price, labor force and inflation are the leading factors causing movements in the Malaysian housing prices in the long run. The findings from estimating generalized impulse response functions (IRFs) and variance decompositions (VDCs) indicate that oil price and labor force shocks explain a substantial portion of housing market price fluctuations in Malaysia.

Keywords: housing market fluctuations; oil price shocks; macroeconomic shocks; Malaysia (search for similar items in EconPapers)
JEL-codes: F62 O18 Q43 (search for similar items in EconPapers)
Date: 2015
New Economics Papers: this item is included in nep-ene, nep-sea and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://www.econstor.eu/bitstream/10419/107139/1/818310952.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:20158

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