How far does the stock market performance influence Malaysia’s consumers purchasing power?

Authors

  • Mohd Jaffri Abu Bakar Faculty of Business and Management, Universiti Sultan Zainal Abidin, Kuala Nerus, Terengganu 21300, Malaysia
  • Nanthakumar Loganathan Azman Hashim International Business School, Universiti Teknologi Malaysia, Johor Bahru, Johor 81310, Malaysia
  • Tirta Nugraha Mursitama International Relations Department, Faculty of Humanities, Bina Nusantara University, Jakarta 11480, Indonesia
  • Asan Ali Golam Hassan Azman Hashim International Business School, Universiti Teknologi Malaysia, Kuala Lumpur 54100, Malaysia

Keywords:

asymmetric effect, purchasing power, stock market

Abstract

This study examined the asymmetric effect of stock market index performance on the external competitiveness of purchasing power for Malaysia covering the period of 1996–2019 utilizing the Ender and Siklos (2001) and the threshold vector error correction model (TVECM) approaches. The empirical findings confirmed an existing of asymmetric effect between stock market index and the external competitiveness purchasing power in Malaysia cases. There is evidence of negative relationship between both series with a bidirectional asymmetric causality relationship. Therefore, policymakers should give more attention of stock market performance to strengthen the current and future monetary policies related to consumer’s purchasing power agenda in Malaysia and consider the current global economic uncertainty caused by the COVID-19 pandemic worldwide.

Downloads

Download data is not yet available.

Downloads

Published

12-10-2022

How to Cite

Bakar, M. J. A. ., Loganathan, N. ., Mursitama, T. N. ., & Golam Hassan, A. A. . (2022). How far does the stock market performance influence Malaysia’s consumers purchasing power?. Kasetsart Journal of Social Sciences, 43(4), 983–990. Retrieved from https://so04.tci-thaijo.org/index.php/kjss/article/view/261667

Issue

Section

Research articles