An Analysis of Price Disparity: Peninsular Malaysia and Sabah

Siti Marsila Mhd Ruslan () and Kasypi Mokhtar ()
Additional contact information
Siti Marsila Mhd Ruslan: Faculty of Maritime Studies Universiti Malaysia Terengganu 21030 Kuala Nerus MALAYSIA
Kasypi Mokhtar: Faculty of Maritime Studies Universiti Malaysia Terengganu 21030 Kuala Nerus MALAYSIA

Jurnal Ekonomi Malaysia, 2020, vol. 54, issue 2, 53-66

Abstract: 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.

Keywords: Granger test; Johansen test; Malaysia; Price disparity; consumer price index (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.ukm.my/jem/wp-content/uploads/2021/05/jeko_542-5.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ukm:jlekon:v:54:y:2020:i:2:p:53-66

DOI: 10.17576/JEM-2020-5402-5

Access Statistics for this article

More articles in Jurnal Ekonomi Malaysia from Faculty of Economics and Business, Universiti Kebangsaan Malaysia Contact information at EDIRC.
Bibliographic data for series maintained by Muhammad Asri Abd Ghani ().