The effects of real exchange rate on trade balance and domestic output: a case of Malaysia
The main objective of this study is to determine the effects of real exchange rate changes on the real Malaysian trade balance and the domestic output during the pegged exchange rate regime, 1977:1{1998:2, using quarterly data. The cointegration results suggest that a real ringgit exchange rate...
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| Format: | Article |
| Language: | English |
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Taylor & Francis
2010
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| Online Access: | http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/1/The_Effects_of_Real_Exchange_Rate_on_Trade_Balance_and_Domestic_Output._International_Trade_Journal.pdf |
| _version_ | 1848776312118837248 |
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| author | Yusoff, Mohammed |
| author_facet | Yusoff, Mohammed |
| author_sort | Yusoff, Mohammed |
| building | IIUM Repository |
| collection | Online Access |
| description | The main objective of this study is to determine the effects of real
exchange rate changes on the real Malaysian trade balance and the
domestic output during the pegged exchange rate regime,
1977:1{1998:2, using quarterly data. The cointegration results suggest
that a real ringgit exchange rate depreciation improves the Malaysian
balance of trade in the long run.The impulse response analysis suggests
that the effects of a depreciation of ringgit on the trade balance and
domestic output are quite similar. A devaluation will initially improve
the trade balance and domestic output, after which the trade balance
starts to deteriorate and then the recession sets in, but subsequently
both the trade balance and domestic output improve. |
| first_indexed | 2025-11-14T14:28:05Z |
| format | Article |
| id | iium-4328 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:28:05Z |
| publishDate | 2010 |
| publisher | Taylor & Francis |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-43282012-04-09T01:00:06Z http://irep.iium.edu.my/4328/ The effects of real exchange rate on trade balance and domestic output: a case of Malaysia Yusoff, Mohammed HF1014 Balance of trade HG3810 Foreign exchange The main objective of this study is to determine the effects of real exchange rate changes on the real Malaysian trade balance and the domestic output during the pegged exchange rate regime, 1977:1{1998:2, using quarterly data. The cointegration results suggest that a real ringgit exchange rate depreciation improves the Malaysian balance of trade in the long run.The impulse response analysis suggests that the effects of a depreciation of ringgit on the trade balance and domestic output are quite similar. A devaluation will initially improve the trade balance and domestic output, after which the trade balance starts to deteriorate and then the recession sets in, but subsequently both the trade balance and domestic output improve. Taylor & Francis 2010 Article PeerReviewed application/pdf en http://irep.iium.edu.my/4328/1/The_Effects_of_Real_Exchange_Rate_on_Trade_Balance_and_Domestic_Output._International_Trade_Journal.pdf Yusoff, Mohammed (2010) The effects of real exchange rate on trade balance and domestic output: a case of Malaysia. The International Trade Journal, 24 (2). 209 -226. ISSN print/1521-0545 online. http://www.informaworld.com/smpp/title~content=t713772442 http://dx.doi.org/10.1080/08853901003652377 |
| spellingShingle | HF1014 Balance of trade HG3810 Foreign exchange Yusoff, Mohammed The effects of real exchange rate on trade balance and domestic output: a case of Malaysia |
| title | The effects of real exchange rate on trade balance and domestic output: a case of Malaysia |
| title_full | The effects of real exchange rate on trade balance and domestic output: a case of Malaysia |
| title_fullStr | The effects of real exchange rate on trade balance and domestic output: a case of Malaysia |
| title_full_unstemmed | The effects of real exchange rate on trade balance and domestic output: a case of Malaysia |
| title_short | The effects of real exchange rate on trade balance and domestic output: a case of Malaysia |
| title_sort | effects of real exchange rate on trade balance and domestic output: a case of malaysia |
| topic | HF1014 Balance of trade HG3810 Foreign exchange |
| url | http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/ http://irep.iium.edu.my/4328/1/The_Effects_of_Real_Exchange_Rate_on_Trade_Balance_and_Domestic_Output._International_Trade_Journal.pdf |