Malaysian bilateral exports and bilateral real exchange rates
This paper analyzes the performance of Malaysian bilateral exports to its major importing countries: the United States, Japan, and Singapore and then investigates whether the export performance could be improved through depreciation or devaluation of domestic currency using cointegration techniq...
| Main Author: | |
|---|---|
| Format: | Conference or Workshop Item |
| Language: | English English |
| Published: |
Faculty of Economics, Universiti Utara Malaysia
2007
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/26008/ http://irep.iium.edu.my/26008/1/Mohammed_Yusoff.pdf http://irep.iium.edu.my/26008/4/3._IECTI_Programme_%2528Details%2529.pdf |
| Summary: | This paper analyzes the performance of Malaysian bilateral exports to its
major importing countries: the United States, Japan, and Singapore and then
investigates whether the export performance could be improved through
depreciation or devaluation of domestic currency using cointegration
technique and VECM. The cointegration test suggests that real exports, real
exchange rates, real imports, and foreign income are cointegrated. The
estimated long-run export equations indicate that the real exchange rates, real
foreign income, and real imports are important determinants of exports. The
major policy implication from this study is that a devaluation or depreciation
of ringgit could improve the competitiveness of Malaysian exports.
Keywords: exports, real exchange rates, Malaysia |
|---|