Real exchange rates and the J-Curve : evidence from Malaysia
The study aims at determining the effects of real bilateral exchange rate on Malaysia’s bilateral trade balance with its major trading partners: the USA, Japan, and Singapore. The results suggest that the bilateral trade balance, real exchange rate, domestic and foreign incomes are cointegrated. I...
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| Format: | Conference or Workshop Item |
| Language: | English |
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Faculty Forum (USA)
2006
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| Online Access: | http://irep.iium.edu.my/26043/ http://irep.iium.edu.my/26043/ http://irep.iium.edu.my/26043/1/Mohammed_Yusof_Real_exchange.pdf |
| Summary: | The study aims at determining the effects of real bilateral exchange rate on Malaysia’s bilateral trade balance with its major trading partners: the USA, Japan, and Singapore. The results suggest that the bilateral trade balance, real exchange rate, domestic and foreign incomes are cointegrated. In the long-run, Malaysia’s bilateral trade balance is found to be responsive to the changes of bilateral exchange rates in the cases of the USA and Singapore but irresponsive for Japan. The short-run dynamic analysis indicates that there exist the J-curve effects in the cases of Malaysia’s trade balances with the USA, Japan and Singapore. |
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