Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia
This study presents an attempt to investigate the impact of exchange rate misalignment on capital inflows in Malaysia. Specifically, a precise threshold value is estimated to examine when exchange rate misalignment suppresses capital inflows. To pursue these objectives, this study relies on the en...
| Main Authors: | , , |
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| Format: | Proceeding Paper |
| Language: | English English English |
| Published: |
2009
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/26005/ http://irep.iium.edu.my/26005/1/1683.pdf http://irep.iium.edu.my/26005/2/Final---BAI2009__Agenda_page7.pdf http://irep.iium.edu.my/26005/7/Cover_of_Proceedings.pdf |
| _version_ | 1848779568068952064 |
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| author | Mohd Sidek , Noor Zahirah Yusoff, Mohammed Munir, Qaiser |
| author_facet | Mohd Sidek , Noor Zahirah Yusoff, Mohammed Munir, Qaiser |
| author_sort | Mohd Sidek , Noor Zahirah |
| building | IIUM Repository |
| collection | Online Access |
| description | This study presents an attempt to investigate the impact of exchange rate misalignment on capital inflows in Malaysia. Specifically, a precise threshold value is estimated to examine when exchange rate misalignment suppresses capital inflows. To pursue these objectives, this study relies on the endogenous threshold analysis as of Hansen (1996, 2000). Results suggest that misalignment in terms of currency overvaluation, has a negative and significant effect when overvaluation is more than 15 percent. This estimate is consistent and robust despite the changes in the choice of explanatory variables.
Keywords: Exchange rate misalignment, Capital inflows competitiveness, Threshold effect.
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| first_indexed | 2025-11-14T15:19:50Z |
| format | Proceeding Paper |
| id | iium-26005 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English English English |
| last_indexed | 2025-11-14T15:19:50Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-260052013-07-19T01:28:41Z http://irep.iium.edu.my/26005/ Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia Mohd Sidek , Noor Zahirah Yusoff, Mohammed Munir, Qaiser HG Finance This study presents an attempt to investigate the impact of exchange rate misalignment on capital inflows in Malaysia. Specifically, a precise threshold value is estimated to examine when exchange rate misalignment suppresses capital inflows. To pursue these objectives, this study relies on the endogenous threshold analysis as of Hansen (1996, 2000). Results suggest that misalignment in terms of currency overvaluation, has a negative and significant effect when overvaluation is more than 15 percent. This estimate is consistent and robust despite the changes in the choice of explanatory variables. Keywords: Exchange rate misalignment, Capital inflows competitiveness, Threshold effect. 2009 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/26005/1/1683.pdf application/pdf en http://irep.iium.edu.my/26005/2/Final---BAI2009__Agenda_page7.pdf application/pdf en http://irep.iium.edu.my/26005/7/Cover_of_Proceedings.pdf Mohd Sidek , Noor Zahirah and Yusoff, Mohammed and Munir, Qaiser (2009) Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia. In: International Conference on Business and Information, 6-8 July 2009, Kuala Lumpur . (Unpublished) http://bai2009.org |
| spellingShingle | HG Finance Mohd Sidek , Noor Zahirah Yusoff, Mohammed Munir, Qaiser Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia |
| title | Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia |
| title_full | Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia |
| title_fullStr | Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia |
| title_full_unstemmed | Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia |
| title_short | Exchange rate misalignment and capital inflows: an endogenous threshold analysis for Malaysia |
| title_sort | exchange rate misalignment and capital inflows: an endogenous threshold analysis for malaysia |
| topic | HG Finance |
| url | http://irep.iium.edu.my/26005/ http://irep.iium.edu.my/26005/ http://irep.iium.edu.my/26005/1/1683.pdf http://irep.iium.edu.my/26005/2/Final---BAI2009__Agenda_page7.pdf http://irep.iium.edu.my/26005/7/Cover_of_Proceedings.pdf |