Empirical Analysis the Dynamic Movement between Commodities and Pandemic Covid-19

Kuek, Michelle Sok Hoon (2022) Empirical Analysis the Dynamic Movement between Commodities and Pandemic Covid-19. Masters thesis, Tunku Abdul Rahman University College.

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Abstract

Commodities price have been volatile in recently due to the outbreak of coronavirus in the country. Henceforth, this study will be focusing on examining the factors that have an impact on commodities price in Malaysia. Dependent variables namely gold price and crude oil price is used in the study. Besides, independent variables namely interest rate, exchange rate, covid-19 confirmed cases as well as covid-19 death cases is included. Daily data from January 1, 2019 to June 31, 2021 is collected for the study. Autoregressive Distributed Lag (ARDL) is employed to compare the results of the model. Empirical results showed that Malaysia’s exchange rate is significant in influencing both gold and crude oil price in Malaysia in both pandemic and during pandemic periods while the other variables were not. However, a more comprehensive can be done in the model of the study by capturing various factors into consideration in a bid to have better results in future research. This framework contributed to a better understanding of which factors have a significant impact on the gold and crude oil price volatility.