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http://dx.doi.org/10.13106/jafeb.2021.vol8.no10.0297

Macroeconomic Environments and Demand for Retail Space in Shopping Centres in Malaysia  

ZAKARIA, Zukarnain (Department of Community Medicine, School of Medicine, International Medical University)
ISMAIL, Mohd Roslan (Department of Community Medicine, School of Medicine, International Medical University)
ARUMUGAM, Vijayesvaran (Department of Community Medicine, School of Medicine, International Medical University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.10, 2021 , pp. 297-303 More about this Journal
Abstract
The performance of the retail industry in a country, which simultaneously reflects the demand for retail space, is significantly influenced by the macroeconomic environment of said country. However, in the case of Malaysia, studies regarding this issue are limited. Therefore, this paper aims to identify the macroeconomic determinants of the demand for retail space in shopping centers in Malaysia through the study of six variables: per capita income, private expenditure, inflation rate, interest rate, total population, and the number of tourists arrival. The nexus between these variables and the demand for retail space in shopping centers were examined by cointegration and causality tests, and regression analysis using quarterly data for the period 1993Q1 to 2016Q4. The results from bivariate cointegration tests indicate that inflation rate, interest rates, population size, and the number of tourists arrival have significant long-run relationships with the demand for retail space of Malaysian shopping centers. Meanwhile, the Granger causality tests show that only population size can cause the demand for shopping centers' retail space. Finally, the results from the regression analysis revealed that income per capita, private expenditure, interest rates, and population are the variables that significantly influence the demand for the retail space of the Malaysian shopping centers.
Keywords
Retail Space; Shopping Centre; Cointegration; Causality; Malaysia;
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