A Study of Car Demand and Its Interdependency in Sarawak

Several developing Asian countries recorded a high level of private based motorisation, specifically car and motorcycle ownership. Continuous rise in the motorisations may lead to issues such as traffic congestions, fuel consumption pollutions. For that reason, there is need investigate determinant ownership interdependency between Sarawak, Malaysia. This study used time series annual data using vector error correction model (VECM) from 1980 2018. Based on analysis, it found gross domestic product, price population density are significant determinants The findings revealed standard living rises, demand increases. At state aggregate level, substitution relationship both modes. indicates people highly likely shift long run. findings, policy recommendations include encouraging shifts alternative modes transport through public reforms well improving facilities for more sustainable mode transportation Sarawak.