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The Relationship between Macroeconomic Variables and Passenger Vehicle Sales in Malaysia

Fidlizan Muhammad (), Mohd Yahya Mohd Hussin (), Azila Abdul Razak (), Norimah Rambeli () and Gan Pei Tha ()

Business and Economic Research, 2013, vol. 3, issue 2, 115-126

Abstract: This study aims to analyze the long-term relationship and causal relationship between macroeconomic variables and passenger vehicle sales in Malaysia. In this study, the monthly time series data from April; 2004 to December; 2010 is used. To achieve the objectives, the Vector Autoregressive (VAR) estimation method is applied. Results show that there is no significant long-term equilibrium relationship between sales of passenger vehicles with macroeconomic variables. For the short term, only significant IPI variable affects the growth of passenger vehicle sales in Malaysia.

Keywords: Passenger Vehicle Sales; Macroeconomic; VAR (search for similar items in EconPapers)
JEL-codes: R00 Z0 (search for similar items in EconPapers)
Date: 2013
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