An examination of the relationship between energy consumption and performance of transportation sector in Malaysia: output multipliers approach

The objective of the current study is to investigate the energy consumption and the performance of Malaysia's transportation sector. It applied output multiplier approach which is based on input-output model. Three input-output tables of Malaysia covering the 1991, 2000 and 2005 periods were used. The results indicate significant changes in the output multipliers of the transportation sector for the (1991-2005) period. Also, the transportation-to-energy subsector multipliers were found to increase over time. The increasing importance of transportation sector to the development of Malaysian economy resulted in a noticeable increase in the consumption of each energy subsector's output especially 'petrol and coal industries' products. Based on the research findings, several policy implications were suggested for the betterment of both sectors' performance and generally for the improvement of Malaysian economy.