Page 238 - Contributed Paper Session (CPS) - Volume 8

CPS2265 Siti Salwani Ismail et al.
Table 2: Correlation Analysis
Base
Output Real Loan Average Price
Variables Lending
Estate Approved House
Rate
Output Real Estate 1.000 0.673 0.865 0.989
Loan Approved 0.673 1.000 0.631 0.724
Base Lending Rate 0.865 0.631 1.000 0.899
Average Price 0.989 0.724 0.899 1.000
House
7.3 Unit Root Test
The unit root test stationarity in Table 3 was based on the Phillips-
perron (PP) unit root test. The result reported that value output of real
estate subsector is stationary at second differencing, while other economy
variables stationary at first differencing.
Table 3: Unit Root Test
Second
levels First differences
differences
variables t- Conclusio
t- p- t- p- p- n
statistics value statistics value statistic value
s
Output of real
estate -1.5998 0.8838 -1.6105 0.1337 -1.6562 0.0261 I(2)
subsector
Loan Approved -1.5973 0.8613 -1.5998 0.0783 -1.6105 0.0559 I(1)
Base Lending
Rate -1.5973 0.9904 -1.5998 0.0106 -1.610 0.0053 I(1)
Average Price
House -1.5998 0.5944 -1.6105 0.0415 -1.6562 0.0077 I(1)
*Represent 10% significance
7.4 Estimation Equation
This section will further discuss on the result of estimation equation. This
equation measure the relationship between three independent variables
that was loan approved, base lending rate and average house price with
gross output value of real estate subsector.
Table 4: Model Summary
Variables Coefficient t-Statistic p-value
Loan approved -0.1137 -0.8901 0.4389
Base lending rate -0.0557 -0.6789 0.5459
Average price
house 0.9324 6.5141 0.0073

R-squared 0.9805
Durbin-Watson stat 1.8755
2
The R shows that the loan approved, base lending rate and average house
accounted for over 98 per cent of the variation in gross output of real estate
subsector in Malaysia over the research period. Meanwhile, from Durbin-

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