Intertemporal approach to the current account: evidence from Malaysia and Indonesia

This article presents an application of the intertemporal approach to the current account positions of Indonesia and Malaysia over the past four decades. Comparing the results for these two emerging market economies, the model performed noticeable better for Malaysia. Meanwhile, Indonesia’s extern...

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Main Authors:	Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2013
Online Access:	http://journalarticle.ukm.my/6953/ http://journalarticle.ukm.my/6953/ http://journalarticle.ukm.my/6953/1/3622-8083-1-PB.pdf

id	ukm-6953
recordtype	eprints
spelling	ukm-69532016-12-14T06:42:41Z http://journalarticle.ukm.my/6953/ Intertemporal approach to the current account: evidence from Malaysia and Indonesia Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald This article presents an application of the intertemporal approach to the current account positions of Indonesia and Malaysia over the past four decades. Comparing the results for these two emerging market economies, the model performed noticeable better for Malaysia. Meanwhile, Indonesia’s external imbalances revealed the followings: deficits of the mid-1980s and 1990s prior to the 1997 crisis appeared to be an unsustainable path; surpluses during the post-crisis period deviated from the ‘optimal path’ significantly, implying that savings had reached a level that was beyond what would be required to support full ‘consumption-smoothing’; and capital movements appeared to be excessively volatile. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6953/1/3622-8083-1-PB.pdf Hamizun Ismail, and Ahmad Zubaidi Baharumshah, and MacDonald, Ronald (2013) Intertemporal approach to the current account: evidence from Malaysia and Indonesia. Jurnal Pengurusan, 37 . pp. 3-13. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This article presents an application of the intertemporal approach to the current account positions of Indonesia and Malaysia over the past four decades. Comparing the results for these two emerging market economies, the model performed noticeable better for Malaysia. Meanwhile, Indonesia’s external imbalances revealed the followings: deficits of the mid-1980s and 1990s prior to the 1997 crisis appeared to be an unsustainable path; surpluses during the post-crisis period deviated from the ‘optimal path’ significantly, implying that savings had reached a level that was beyond what would be required to support full ‘consumption-smoothing’; and capital movements appeared to be excessively volatile.
format	Article
author	Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald
spellingShingle	Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald Intertemporal approach to the current account: evidence from Malaysia and Indonesia
author_facet	Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald
author_sort	Hamizun Ismail,
title	Intertemporal approach to the current account: evidence from Malaysia and Indonesia
title_short	Intertemporal approach to the current account: evidence from Malaysia and Indonesia
title_full	Intertemporal approach to the current account: evidence from Malaysia and Indonesia
title_fullStr	Intertemporal approach to the current account: evidence from Malaysia and Indonesia
title_full_unstemmed	Intertemporal approach to the current account: evidence from Malaysia and Indonesia
title_sort	intertemporal approach to the current account: evidence from malaysia and indonesia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2013
url	http://journalarticle.ukm.my/6953/ http://journalarticle.ukm.my/6953/ http://journalarticle.ukm.my/6953/1/3622-8083-1-PB.pdf
first_indexed	2023-09-18T19:48:22Z
last_indexed	2023-09-18T19:48:22Z
_version_	1777406052961091584

Intertemporal approach to the current account: evidence from Malaysia and Indonesia

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