See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/283291579

THE DETERMINANTS OF INFLATION IN MALAYSIA

Conference Paper · August 2014

CITATIONS READS

7 20,806

6 authors, including:

Hashim Jameelah Maryam Idris Osman

Universiti Teknologi MARA Universiti Teknologi MARA
16 PUBLICATIONS   115 CITATIONS    14 PUBLICATIONS   115 CITATIONS   

SEE PROFILE SEE PROFILE

All content following this page was uploaded by Hashim Jameelah Maryam on 28 October 2015.

The user has requested enhancement of the downloaded file.

 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

THE DETERMINANTS OF INFLATION IN MALAYSIA

Maryam Jameelah Hashim1, Idris Osman2 & Nura Lina Elias3

Universiti Teknologi MARA Shah Alam1, Universiti Teknologi MARA Melaka2,3,
(jamieniz@salam.uitm.edu.my, idrisosman@melaka.uitm.edu.my, nuralina@melaka.uitm.edu.my)

ABSTRACT

This paper analyzes the determinants of Inflation in Malaysian using economic indicators. The study extends
empirical work on determinants of inflation theory in three ways. First, it examines a much broader set of
economic indicators, many of which have been analyzed empirically in different countries. Second, since the
economic indicators have different empirical implication regards to different countries, the author analyze it
specifically for determinants of inflation based on Malaysian economic performance over the past 33 years,
since 1980 until 2012. Furthermore, in order to do this research, more than 10 literature review will be used
to classify the economic performance and as well as inflation rate. Third, the study uses Multiple Regression
Analysis to identify the determinants of inflation between independent variables and dependent variable.

KEYWORDS: Inflation, Interest rate, GDP, Money Supply, Government Expenditure.

1. INTRODUCTION

Inflation can be defined as sustained increase in the aggregate or general price level in an economy which
mean that there is an increase in the cost of living. Inflation is also known as the percentage change in the
value of the Consumer Price Index (CPI) on a year-on year basis. It can be said that inflation is a continuous
issue in all nation in maintaining low living cost, high growth, health economy and as aimed to policy
makers’ decision. Inflation provides positive and negative impact depending on a country economic
condition (Liwan & Lau, 2007). On the other hand, a moderate level of inflation characterizes a good
economy. The rate of 2 or 3% of inflation is beneficial for an economy as it encourages people to buy or
borrow more, because during times of lower inflation, the level of interest rate also remains low. However,
inflation has its worst impact towards consumers. High prices from day-to-day goods make it difficult for
consumers to afford even for the basic commodities in daily life which will disrupts the smooth functioning
of a market economy (Krugman, 1995).
Recently, through the 13th Malaysia Election, most Malaysian was hoping for lower cost of living where the
issue was manifested by some election candidates. Although there are certain products that could be
subsidized, but products such as food and beverages, utilities, and properties are directly influenced by
inflation. Despite of blaming certain parties for increase cost of living, Malaysian should understand what
actually drive the high cost of living which lead to chaos and become the main issue in Malaysia.
Therefore, Consumer Price Index becomes an important tool due to Malaysians are more concern on their
cost of living. Tentatively, people demand for higher income and try to reduce cost in order to widen the
purchasing power. However, higher income will lead to higher inflation. Hence, the government tries to keep
inflation under control and moving forward to achieve low or zero inflation.
Based on previous researchers, there are quite a number of arguments on the precise relationship between
inflation and economic indicators at the macroeconomic level (Omoke, 2010). Money supply is one of the
determinants that affect inflation in Malaysia (Cheng & Tan, 2010) and Rankaduwa (2005) agreed that, there
is a positive relationship between money supply and inflation. Besides, another economic indicator closely
related to both money supply and inflation is the national income or the Gross Domestic Product (Maymunah
et al, 2005). Various studies done on determinants of inflation, focusing on independent variables such as
unemployment rate, exchange rate, oil prices (Tan, 2011) and income (Akhter, 1992). However, less studies
done on relationship between Gross Domestic Product, Money Supply, Interest Rate, Import Goods and
Services, and Government Expenditure with inflation. Therefore, this study will concentrate on the
Malaysian concept on which factors will contribute to the increase in inflation (CPI). The variables selected
are Gross Domestic Product, Money Supply, Interest Rate, Import Goods and Services, and Government
Expenditure.
This paper is organized into five sections. Section one contains the introduction whereas, section two
reviews the literature on inflation and economic performance. Section three specifies the method and
describes the data in the estimation model while section four discusses the results. Finally, conclusion of the
study will be presented in section five.

1
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

2. LITERATURE REVIEW

There are vast studies that investigated and proven that Gross Domestic Product, Money Supply, Interest
Rate, Import Goods and Services as well as Government Expenditure are significant towards Consumer Price
Index.

2.1 Inflation

Amadeo (2012) stated that inflation is when the prices of most goods and services continue to creep upward.
When this occurs, the standard of living falls. It is due to each dollar buys less; therefore, we have to spend
more to get the same amount of goods and services. According to Cheng & Tan (2002), inflation causes
economic problems and distortions in the functioning economy that may cease economic growth rate of a
country. Inflation is likely to happen when major economic variables change such as fiscal deficit and excess
money supply. Friedmand & Schwarts (1982) stated that money growth rate and inflation rate has a positive
relationship. Cheng & Tan (2009) agreed that inflation in Malaysia was controlled well during recent
financial crisis compared to other neighboring countries. In research done by Baghestani & Abu Al-Foul
(2009) had analyzed that Federal Reserve gave the accurate information about inflation once the government
forecast.

2.2 Gross Domestic Product

According to Sictus (2010), Gross Domestic Product (GDP), is a basic determinant of a country's economic
performance, and is the market value of all final goods and services made within the borders of a nation in a
year. The Malaysian economy has performed well over the years due to the country's political stability, the
sound financial and economic policies adopted by the government, and the efficient management of its
natural resources. Moorthy & Kolhar (2011) examined the Gross Domestic Product (GDP) will falls relative
with Consumer Price Index (CPI) when food prices rise. The researchers analyzed the increasing in food
prices for monetary policy in India. To measure inflation in India, they used between CPI and GDP deflator.
The data comes from evidence from US (1960s) to examine whether the 1970s stagflation was due to the
OPEC price hike. The results shows when food prices increase, the GDP deflator falls relative to the CPI. As
for Armesh et al (2010), in his study using ordinary least square method in Iran, demonstrates that actual
GDP is negatively affected to inflation in the long run.

2.3 Government Expenditure

Kandil (2006) in her research stated that money supply, government spending, consumer price are anticipated
and unanticipated in fluctuations of real output growth, price inflation, wage inflation and real wage growth
where every countries have different effect of monetary and government spending shock. Government
spending in variability can cause decrease in price inflation and increase real wage. Hence, Aurangzeb & Haq
(2012) suggested that government borrowing is a major cause of high price levels. In addition to that, a
research done by Cheng & Tan (2002) declared that government expenditure is indirectly related to inflation;
in which it is intra-related to exchange rate channel. Olatunji et al. (2010) have examined the recent factors
which are affecting inflation in Nigeria. Time series data has been selected for this particular study. In their
paper, they have applied Johansen technique to formulate the results. The study reveals that the previous year
total imports, previous year consumer price index for food, previous year government expenditure, and
previous year exchange rate have negative influence on inflation rate. Therefore, previous year exports,
previous year agricultural output, previous year interest rate and crude oil exports have negative impact on
the rate of inflation in Nigeria.

2.4 Imported Goods and Services

Dr. Azali Mohamed (2000) stated that in between 1973 to 1974, imported goods also provide pressure on
inflation. Imported goods could influence general price level to increase, whereas interest rate is one of the
factors that affect the inflation rate. Interest rate generally trends upward and exchange rate has impact on the
balance of payment. Imported of goods and services is affected by exchange rate. Previous study conducted
by Cheng & Tan (2002) indicates that imported goods and services which are measured by looking at trade
balances has no direct or indirect relationship with inflation in Malaysia. However, it may have the effect on
increased in general price level due to higher imported goods prices as reflected by high shipping cost. At the
time of beginning stage industrialization program, import goods are very depends on manufacturing sector.

2
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

As a result, cost-push-inflation may have been one of the causes for high inflation in 1974. In addition,
Statutory Reserve Requirement (SRR) in Malaysia to the year 1972 to early 1974 had been raised from 8.5%
to 10%. SRR is to control the liquidity among finance companies for the first time in 1972 and based on total
deposit which is 2.5%. Since 1978, Bank Negara Malaysia (BNM) can control the movement of inflation
rate, from 10% (1974) to 5% (1978). Khan & Gill (2010) studied on the determinants of inflation in Pakistan
for the period of 1970 to 2007. They concluded that an increase in the value of imports contribute positively
to the inflation. Nevertheless, a recent study by Crowley (2010) argued that there is no direct or indirect
relationship between import goods and services and inflation. This argument is agreed and confirmed that the
import of goods and services do not have significant impact on inflation but on the contradictory the inflation
influenced import of goods and services (Al-Mukit et al, 2013).

2.5 Interest Rate

Interest rate is one of the factors that affect the inflation rate. Since interest rate is for banking sector, the
company or individual can generate money from investment and for borrowing. Interest rate generally trends
upward. Furthermore, exchange rate can give impact and affect the balance of payment. Cristadoro &
Veronese (2011) captured this view by stating that the bank rate or interest rate used by the bank to borrow
funds from the Reserve Bank India (RBI) and this method was applied actively. RBI also employed the cash
reserve ratio which is ratio that bank should reserve in Reserve Bank as a percentage of their demand.
Inflation shock is from reaction of exchange rate, growth and capital inflows. Meanwhile inflation happened
because of actual interest rate is not on normal rate which is low as compared to other countries. Chaturvedi
et al (2009), replicated the above study is the relationship between saving rate is positive while negative
effect is on growth. Growth is based on past value that is why it is not effect towards inflation and interest
rate is not affected by saving rate. Interest rate is said to have impact on inflation in Malaysia through
government expenditure. On the other hand, Aurangzeb (2012) concluded that all independent variables have
significant impact on the inflation. He confirmed that gross domestic product is negatively related to inflation
whereas; exchange rate, interest rate, fiscal deficit and unemployment have positive relationship with
inflation.

2.6 Money Supply

In studies conducted by Vera (2010), income distribution has conflict claims comes from inflation. Conflict
theories can determine by income claims over the existing price from value of output. He also added that
supply of money over and above that needed for domestic trade leads to higher inflation, whereby import and
export are very responsive to price. The result of incoherent of real wage and desired markup comes from
inflation. Furthermore he adds inflation may have conflict when exchange rate increase because exchange
rate was depends on inflation or deflation economic state. Based on a study that tested the cointegration
between domestic inflation and domestic money supply, the results reveal the existence of long run
relationship between inflation and money supply (Husain, 2007). Jalali Naini (1997) examines the price
movement and inflation rate before World War II in Iranian economy. He stated that money supply is the
main principle factors of the increase in general price level. Another study in Iran conducted from year 1961
to 2005; using OLS econometric method by Armesh et al (2010) confirmed that money supply has a positive
long run influence on inflation. Money supply also said to have indirect relationship in narrow sense, as
found by Cheng & Tan (2002).

3. METHODOLOGY

On the study base, this research will examine the determinants that may effects Consumer Price Index in
Malaysia. One of the major statistical techniques used to investigate the relationship between independent
variables and dependent variable is Regression analysis (Jasmine et al, 2011). This regression can be used to
explain and describe the movement of one variable to another variable. The objective of this analysis is to
build a regression model and to predict the variables based on the coefficient resulted from the regression.
Sekaran & Bougie (2009) stated that, this analysis provides a means of objectively assessing the degree and
the character of the relationship.
Consequently, a Multiple Linear Regression analysis is carried out to predict the value of a dependent
variable, Consumer Price Index. Sources of data based on secondary data and there are no primary data
involve in this study. In addition, data stream is the main sources to get the quantitative data. Data searched
are Consumer Price Index (CPI), Gross Domestic Product, Money Supply, Interest Rate, Import Goods and
Services and Government Expenditure. This analysis based on time series yearly data in range from year
1980 to 2012.The Multiple Linear Regression Model:

3
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

Y = α + β ₁X₁ + β ₂X₂ + β ₃X₃ + β 4X4 + β 5X5 +  (1)

Based on the aforementioned conceptualization and description of the constructs, five hypotheses have been
developed:

H1: There is a relationship between Gross Domestic Product and inflation

H2: There is a relationship between government expenditure and inflation
H3: There is a relationship between import goods and services and inflation
H4: There is a relationship between interest rate and inflation
H5: There is relationship between money supply and inflation

Figure 3.1 below depicts the relationship between the independent and dependent variable. The dependent
variable responded to the independent variables. The dependent variable for this study is the Consumer Price
Index (CPI). This CPI indicates the inflation in Malaysia. Meanwhile, the independent variables will
influence the dependent variable. Therefore, there are five independent variables that related to the dependent
variable. It comprises the Gross Domestic Product (GDP), imported goods and services, interest rate, money
supply and government expenditure.

Figure 3.1: Theoretical Framework

Independent Variables Dependent Variable

Gross Domestic Products

Government Expenditure

Imported Goods & Consumer Price Index

Services

Interest Rate

Money Supply

4. RESULTS and DISCUSSION

Table 4.1: Correlation Coefficient Analysis

Correlation
(Probability) CPI GDP GE IM IR MS
CPI 1
GDP -0.4174 1
(0.0339)**
GE -0.3711 0.31995 1
(0.0619)*** (0.1111)
IM 0.30437 -0.112 -0.7835 1
(0.1306) (0.5858) (0.00)*
IR -0.8171 0.09235 -0.0821 -0.0542
1
(0.00)* (0.6537) (0.6902) (0.7927)
MS 0.58904 -0.4118 -0.2193 0.09678 -0.4421
1
(0.0015)* (0.0366)** (0.2817) (0.6381) (0.0237)**
*1% significance level **5% significance level ***10% significance level

4
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

The correlation coefficient conveys the accurate study of one variable from another. This correlation
coefficient must lies from -1.00 to +1.00. If the correlation coefficient is approaching to 1.00 or -1.00, the
ability to predict one variable from another improves.
Table 4.1 above shows that Gross Domestic Product has weak negative correlation with -0.4714 at 5%
significance level. In addition, Government Expenditure also has weak negative correlation with -0.37114,
and shows indirect relationship at 10% significance level. As for Import Goods and Services, it display a
positive weak correlation of 0.304368, however, it is not significant to CPI. On the other hand, Interest Rate
has strong negative correlation of –0.8178 which illustrate indirect relationship between interest rate and
consumer price index at 1% significance level. Finally, money supply has relatively strong positive
correlation with 0.589038 at 1% significance level. All of the independent variables are correlated towards
CPI except Import Goods and Services.

Table 4.2: Variance Inflation Factor

Coefficient Uncentered Centered

Variables Variance VIF VIF
GDP 0.123484 4.870744 1.347400
GE 2.960382 332.8914 3.415207
IM 0.025370 128.9198 2.979893
IR 0.469328 22.41280 1.412591
MS 0.006350 69.84934 1.594764
C 1492.149 1084.168 NA
Normality Test: Jarque-Bera 0.281677 Probability 0.868630

Variance Inflation Factor (VIF) is a measure of the amount of multicollinearity in the set of multiple
regression variables. The centered VIF value used to diagnose whether there exist any multicollinearity
problem. According to Table 4.2 above, VIF result shows that all independent variables values are less than
10. Therefore, diagnostic indicates that a multicollinearity assumption is not violated.
The normality test under Jarque-Bera is 0.281677 and the p-value 0.869 which is higher than 0.05. In this
test, it is considered that the distribution is normal and should not reject null hypotheses (H0). Based on the
VIF and normality test result, all regression assumptions have been satisfied.

Table 4.3: Regression Analysis on Inflation (CPI)

Dependent Variable: CPI
Variables Coefficient Std. Error t-Statistic Prob.
Gross Domestic Product -0.835934 0.351403 -2.378848 0.0274
Government Expenditure -6.844136 1.720576 -3.977816 0.0007
Import Goods and Service -0.199053 0.159280 -1.249710 0.2258
Interest Rate -7.279883 0.685075 -10.62640 0.0000
Money Supply 0.059777 0.079686 0.750165 0.0062
Constant 245.2966 38.62834 6.350171 0.0000
Adjusted R-squared = 0.894592
F(5,33) = 43.43493
Prob(F-statistic) = 0.000000

Y= 245.2966 -0.835934 GDP - 6.844136 GE - 0.199053 IM - 7.279883 IR + 0.059777 MS

Y = Consumer Price Index (Dependent Variable)

GDP = Gross Domestic Product
GE = Government Expenditure
IM = Import goods and services
IR = Interest Rate
MS = Money Supply

The R² value is 0.8946 indicates that 89.46% of the variation in the dependent variable which is Consumer
Price Index is explained by the variability of the independent variable such as Gross Domestic Product,

5
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

Government Expenditure, Import Goods and Services, Interest Rate and Money Supply, whereas the
remaining 10.54% explained by other factors that are not included in study. Furthermore, F statistics is 43.43,
used to tests the overall significance of the regression model. The p-value equals to 0.0000 which is less than
0.05, describe the model is significant and can be use to predict CPI.
From the multiple regression analysis in Table 4.3 above, it was found that gross domestic product,
government expenditure, import goods and services, and interest rate are negatively related to consumer price
index, while money supply has positive relationship with consumer price index.
Gross domestic product indicates that there is negative relationship/inverse relationship with inflation
(CPI). An increase in 1% of gross domestic product, will affect inflation (CPI) to decrease by 0.835934.
Laryea & Sumaila (2001) have examined the major determinants of inflation in Tanzania. For this analysis,
they have used the time series data from 1992 to 1998 on quarterly basis. They found that GDP has negative
impact on CPI. This was also confirmed by recent researcher that there exist a negative relationship between
GDP and inflation (Aurangzeb, 2012).
Government expenditures indicate negative relationship with inflation (CPI). It shows that an increase in
1% of government expenditures will reduce inflation (CPI) by 6.844136. Cheng & Tan (2002) declared that
government expenditure is indirectly related to inflation; in which it is intra-related to exchange rate channel.
Another researcher, Olatunji et al. (2010) reveals that the previous year total imports, previous year consumer
price index for food, previous year government expenditure, and previous year exchange rate have negative
influence on inflation rate.
Import goods and services rate is negative and it indicates that there is negative relationship/inverse
relationship between import goods and services and inflation (CPI). Increase in 1% of import goods and
services, will affect inflation (CPI) to decrease by 0.199053. Dr. Azali Mohamed (2000) stated that in
between 1973 to 1974, imported goods also provide pressure on inflation. Imported goods could influence
general price level to increase. However, recent study by Crowley (2010) argued that there is no direct or
indirect relationship between import goods and services and inflation.
Interest rate shows negative relationship/inverse relationship towards inflation (CPI). Increase in 1% of
interest rate, will lead to decrease in inflation (CPI) by 7.279883. Mahmood et al (2013) employed
Johansen’s Cointegration test and VECM claimed that interest and unemployment rates are both negatively
related to inflation in Pakistan
Money supply is positively related to inflation (CPI). 1% increase in money supply, will affect inflation
(CPI) to increase by 0.059777. This result was supported by Abidemi & Malik (2010) who analyzed
simultaneous interrelationship between inflation and its major determinants in Nigeria for the period from
1970-2007. However, the finding was argued by Cheng & Tan (2002) stated that money supply has indirect
relationship towards inflation in narrow sense.

Table 4.4: Probability (t-test) descriptive

Probability
Variable Results Literature Review
(p-value)

Gross Significant; reject Moorthy and Kolhar (2011) examined the Gross
Domestic 0.0274 null hypothesis Domestic Product (GDP) will falls relative with
Product (H0) inflation (CPI) when food prices rise.

Cheng & Tan (2002), government expenditure

Significant; reject
Government is said to have indirect relationship with
0.0007 null hypothesis
Expenditure inflation; in which it is intra-related to exchange
(H0)
rate channel.
Not significant; do Crowley (2010) argued that there is no direct or
Import Goods
0.2258 not reject null indirect relationship between import goods and
and Services
hypothesis (H0) services and inflation.

Significant; reject Chaturvedi et al (2009), replicated the above

Interest Rate 0.0000 null hypothesis study is the relationship between saving rate is
(H0) positive while negative effect is on growth
MS have positive relationship with CPI was
Significant; reject supported by Abidemi & Malik (2010) who
Money Supply 0.0062 null hypothesis analyzed simultaneous interrelationship between
(H0) inflation and its major determinants in Nigeria
for the period from 1970-2007.

6
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

5. CONCLUSION

The objectives of the study have been achieved. The results show that all the independent variables have
different relationship towards inflation (CPI) which is positive, negative or not related. Overall, it can be
concluded that the gross domestic product (GDP), interest rate (IR) and government expenditure (GE) have
negative relationship towards the inflation (CPI) whereas, money supply (MS) is positively related. Hence,
imported goods and services are not significant. Therefore, the study fails to reject H1, H2, H4 and H5, but to
reject H3.
Cheng and Tan (2002) used time series data over the period of 1973-1997 concluded that money supply,
interest rate, income, private consumption, government expenditure, exchange rate, trade balance and capital
inflows contribute significantly to inflation in Malaysia. Besides, another researcher agreed to the statement
is Aurangzeb (2012), who concluded that gross domestic production, exchange rate, interest rate, fiscal
deficit and unemployment have significant impact on the inflation.
For future research, it is recommended to include other variables such as unemployment rate, exchange
rate, discount rate, government revenue, export of goods and services, and private consumption in order to
identify the remaining factors that could explain Malaysia’s inflation. On the other hand, there are others
factors that could affect the inflation in Malaysia. There are several policies implemented in other country in
order to face the inflation factors that might be considered to overcome it such as, monetary policy, fiscal
policy and fiscal cliff.

REFERENCES

Agayev, S. (2011). Exchange Rate, Wages, and Money; What Explains Inflation in CIS Countries. Euro
Journals Publishing, Vol.1, 6-13.

Al-Mukit, D.M., Shafiullah, A. Z. M. & Ahmed, M.R. (2013). Inflation Led Import or Import Led Inflation:
Evidence from Bangladesh. Asian Business Review, Volume 2, Numebr 2/2013 (Issue 4) ISSN 2304-2613

Armesh, H., Salarzehi, H., Yaghoobi, N.M. & Heydari, A. (2010). Causes of Inflation in the Iranian
Economy. International Review of Business Research, Vol. 6. No.3. pp. 30 - 44

Aurangzeb. (2012). Factors Affecting The Trade Balance in Pakistan. Economics and Finance Review Vol.
1(11) pp.25 – 30.

Aurangzeb and Haq, A. (2012). Determinant of Inflation in Pakistan. Universal Journal of Management and
Social Sciences, 4(2), 89-96.

Azali Mohamed, (2000). The Malaysian Economy and Monetary Policy: A Historical Review. @Free
Lecture Notes. Courses: ECN 3141 and ECN 4149.

Baghestani, H. & AbuAl-Foul, B. (2010). Factors influencing Federal Reserve forecasts of inflation. Journal
of Economic Studies, Vol. 37 Iss: 2, pp.196 – 207.

Bashir, F., Nawaz, S., Yasin K., Scholar P., Khursheed U., Khan J., Qureshi M.J. (2011). Determinants Of
Inflation In Pakistan: An Econometric Analysis Using Johansen Co-Integration Approach. Australian
Journal of Business and Management Research, Vol.1 No.5 [71-82].

Bonato, L. (2007). Money Inflation in the Islamic Republic of Iran. IMF Working Paper. Middle East and
Central Asia Department .

Chaturvedi V., Kumar B., Dholakia R.H. (2009). Inter-relationship between Economic Growth, Saving and
Inflation In Asia. Journal of International Economic Studies, the Institute of Comparative Economic
Studies, Hosei University, No.23, 1–22.

Cheng M., Tan H. (2002). Inflation in Malaysia. International Journal of Social Economics, Volume 35,
Issue 3.

Cristadoro, R., & Veronese, G.(2011). Monetary policy in India: is something amiss? Indian Growth and
Development Review, 4(2), pp. 166-192.

7
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

Crowley, J. (2010). Commodity Prices and Inflation in the Middle East, North Africa, and Central Asia.
International Monetary Fund.

Darrat, A.F. (1985) "Inflation in Saudi Arabia: An Econometric Investigation", Journal of Economic Studies,
Vol. 12 Iss: 4, pp.41 – 51.

Husain, A. O. (2007). Determinants of Inflation in Kuwait. Journal of Economic and Administrative

Sciences, Vol. 23 Issue: 2, pp.1 - 13

Jalali-Naini, S.A. (1997). An Analysis of Inflation, Monetary, Exchange Rate, and Credit Policies. Higher
Research Institute of Planning and Development, Tehran, Iran.

Kandil, M., & Morsy, H. (2010). Fiscal stimulus and credibility in emerging countries. WorkingPaper,
WP/10/123. (Washington: IMF). pp. 1, 3-4, 7, 13-16.

Khan, A.H. & Qasim, M.A.(1996). Inflation in Pakistan Revisited. The Pakistan Development Review,
35(4),747-759.

Khan, R.E.A. & Gill, A.R. (2010). Determinants of Inflation: A Case of Pakistan (1970-2007). Journal of
Economics, 1 (1),45-51.

Laryea, S. A., & Sumaila, U.R. (2001). Determinants of Inflation in Tanzania. CMI Working Papers. Chr.
Michelsen Institute, Development Studies and Human Rights.

Le, H. V., & Pfau, W. D. (2009). Var Analysis of The Monetary Transmission Mechanism in Vietnam.
Applied Econometrics and International Development. Vol. 9-1.

Mahmood,Y., Bokhari,R., & Aslam,M.(2013). Trade-off between Inflation, Interest and Unemployment Rate
of Pakistan: A Cointegration Analysis. Pakistan Journal of Commerce and Social Sciences, 7(3),482-492.

Maymunah, I., Noranita A., & Bazri, A.B. (2005). Causality between Money Supply and Price: Evidence
from Malaysia, Research Paper from Faculty of Business Management, Universiti Teknologi MARA
Cawangan Segamat.

Moorthy,V. & Kolhar,S. (2011). Rising Food Inflation and India's Monetary Policy. Indian Growth and
Development Review, Vol. 4 Issue: 1, pp.73 – 94.

Mosayed, P., & Mohammad, R. (2009). Sources of Inflation in Iran: An application of the real approach.
International Journal of Applied Econometrics and Quantitative Studies, 6(1), 61 – 76

Odusanya, I. A., & Atanda, A. A. (2010). Analysis of Inflation and Its Determinants in Nigeria. Pakistan
Journal of Social Sciences, Volume 7, No. 2. Pg. 97-100.

Olatunji, G. B., Omotesho, O. A., Ayinde, O. E., & Ayindo, K. (2010). Determinants of Inflation in Nigeria:
A Co-integration approach. Paper presented at the Joint 3rd African association of agricultural
economists, 1 – 12.

Sekaran, U., & Bougie, R. (2010). Research Methods. For Business: A Skill Building Approach. West.
Sussex, UK: John Wiley & Sons Ltd (5th ed.).

Shinichi, W., & Binh, P.T. (2005). Demand for Money Dollarized, Transitional Economy: The Case of
Vietnam. 1st Vietnam Development Forum, Tokyo Conference on the Development of Vietnam, Tokyo,
Vol.18.

Sictus, A. (2010). Agricultural share of the gross domestic product and it implication to rural areas.
International Journal of Social Economics, 226-238.

Tang, C. F. (2011). An exploration of dynamic relationship between tourist arrivals, inflation, unemployment
and crime rates in Malaysia. International Journal of Social Economics, Vol. 38 Iss: 1, pp.50 – 69.

8
 3rd International Conference on Accounting, Business and Economics (ICABEC2014)

Unayama, T. (2004). Upward bias in the consumer price index under the zero-inflation economy. Economics
Letters, Elsevier, vol. 85(1), pages 139-144.

Vera, L. (2010). Conflict Inflation: an open economy approach. Journal of Economic Studies, Vol. 37, Issue
6, 597-615.

View publication stats