An analysis of price disparity: peninsular Malaysia and Sabah

An analysis of price disparity: peninsular Malaysia and Sabah. Jurnal Ekonomi Malaysia, 54 (2). pp. 53-66. ISSN 2716–6058 (2020)


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

Item Type: Article
Keywords: Price disparity, Consumer price index, Johansen test, Granger test, Malaysia, Marginal cost
Taxonomy: By Subject > Business & Management > Economics
By Subject > Business & Management > Finance
Local Content Hub: Subjects > Business & Management
Depositing User: Eza Eliana Abdul Wahid
Date Deposited: 06 Oct 2021 23:36
Last Modified: 12 Oct 2021 08:45
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