The Crude Oil Price Power on Malaysia GDP: Relationship Analysis employing Numerical Method with Optimisation Approach

Abstract

The natural means that come in the form of crude oil is the global economy’s signature ingredient, and its price fluctuations carry pertinent impressions on numerous aspects. These include well-being, advancement and financial thriving globally. In an attempt to examine the interaction between the gross domestic product (GDP) and crude oil prices (COP) in Malaysia of 2009 until 2018, the LotkaVolterra model is employed. The optimisationalgorithmis administered to foretell Malaysia’s GDP and COP, respectively. The outcome establishes that there is a prey-predatorrelationship between Malaysia’s GDP and the COP. It points out that the numerical method with fminoptimiser algorithm can be adopted to gain optimised parameter of the LotkaVolterra model by applying data of Malaysian GDP and crude oil price.