The study of exchange rates behavior in Malaysia by using NATREX model

Citation

Johari, Mohamad Shukri and Habibullah, Muzafar Shah and Yusop, Zulkornain and Lee, Chin (2017) The study of exchange rates behavior in Malaysia by using NATREX model. Journal of Fundamental and Applied Sciences, 9 (3S). pp. 697-715. ISSN 1112-9867

Abstract

This paper aims to estimate equilibrium exchange rates and identify the determinants of macroeconomics fundamentals affecting exchange rates in Malaysia. By using Natural Real Exchange Rates (NATREX) model, this study adopts the Autoregressive Distributed Lag (ARDL) model to examine the long run relationships (or cointegration) among variables and the dynamic effect within variables in the short run for the period 1970 to 2012. The results suggest that the terms of trade, dependency ratio of the young, and foreign direct investment play an important role in influencing the exchange rates movement in Malaysia. The result also reveals that the misalignment of exchange rates is quite small and stable in Malaysia during 1983 to 2012, except in 1995.

Download File

Preview

Text (Abstract)
The study of exchange rates behavior in Malaysia by using NATREX model.pdf
Download (5kB) | Preview

Official URL or Download Paper: https://www.ajol.info/index.php/jfas/article/view/...

Additional Metadata

Item Type:	Article
Divisions:	Faculty of Economics and Management
DOI Number:	https://doi.org/10.4314/jfas.v9i3s.55
Publisher:	Faculty of Science and Technology, University of El Oued
Keywords:	Natural real exchange rates; Exchange rates misalignment; Bound testing; ARDL
Depositing User:	Mohd Hafiz Che Mahasan
Date Deposited:	05 Nov 2018 00:01
Last Modified:	21 Oct 2019 02:20
Altmetrics:	http://www.altmetric.com/details.php?domain=psasir.upm.edu.my&doi=10.4314/jfas.v9i3s.55
URI:	http://psasir.upm.edu.my/id/eprint/63533
Statistic Details:	View Download Statistic

Actions (login required)

View Item