Stability in ASEAN+3 exchange markets: An EGARCH-M approach

This paper empirically investigates the advancement of exchange markets’ stability and comovement after the ASEAN+3 financial cooperation agreement. The study employs EGARCH-in-mean approach and uses daily exchange rates. The findings indicate that: 1) the exchange market volatility is resulted from...

Full description

Bibliographic Details
Main Authors: Rahman, Md. Saifur, Shahari, Farihana
Format: Article
Language:English
Published: World Scientific and Engineering Academy and Society (WSEAS) 2015
Subjects:
Online Access:http://irep.iium.edu.my/52785/
http://irep.iium.edu.my/52785/1/Stability%20in%20ASEAN%2B3%20exchange%20markets-%20An%20EGARCH-M%20approach.pdf
_version_ 1848784122640596992
author Rahman, Md. Saifur
Shahari, Farihana
author_facet Rahman, Md. Saifur
Shahari, Farihana
author_sort Rahman, Md. Saifur
building IIUM Repository
collection Online Access
description This paper empirically investigates the advancement of exchange markets’ stability and comovement after the ASEAN+3 financial cooperation agreement. The study employs EGARCH-in-mean approach and uses daily exchange rates. The findings indicate that: 1) the exchange market volatility is resulted from regional markets’ shocks during both of pre and post-agreement periods, 2) the ASEAN+3 exchange markets progressed substantial development during post-agreement, 3) both of high and low income economies are improving the exchange market stability in a cooperative way regardless of income level, and 4) the overall impact of ASEAN+3 financial cooperation leads to stabilize the regional exchange markets.
first_indexed 2025-11-14T16:32:14Z
format Article
id iium-52785
institution International Islamic University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T16:32:14Z
publishDate 2015
publisher World Scientific and Engineering Academy and Society (WSEAS)
recordtype eprints
repository_type Digital Repository
spelling iium-527852016-12-01T13:35:15Z http://irep.iium.edu.my/52785/ Stability in ASEAN+3 exchange markets: An EGARCH-M approach Rahman, Md. Saifur Shahari, Farihana HG3810 Foreign exchange This paper empirically investigates the advancement of exchange markets’ stability and comovement after the ASEAN+3 financial cooperation agreement. The study employs EGARCH-in-mean approach and uses daily exchange rates. The findings indicate that: 1) the exchange market volatility is resulted from regional markets’ shocks during both of pre and post-agreement periods, 2) the ASEAN+3 exchange markets progressed substantial development during post-agreement, 3) both of high and low income economies are improving the exchange market stability in a cooperative way regardless of income level, and 4) the overall impact of ASEAN+3 financial cooperation leads to stabilize the regional exchange markets. World Scientific and Engineering Academy and Society (WSEAS) 2015 Article PeerReviewed application/pdf en http://irep.iium.edu.my/52785/1/Stability%20in%20ASEAN%2B3%20exchange%20markets-%20An%20EGARCH-M%20approach.pdf Rahman, Md. Saifur and Shahari, Farihana (2015) Stability in ASEAN+3 exchange markets: An EGARCH-M approach. WSEAS Transactions on Business and Economics, 12. pp. 426-431. ISSN 1109-9526 E-ISSN 2224-2899 http://www.wseas.org/multimedia/journals/economics/2015/a825707-337.pdf
spellingShingle HG3810 Foreign exchange
Rahman, Md. Saifur
Shahari, Farihana
Stability in ASEAN+3 exchange markets: An EGARCH-M approach
title Stability in ASEAN+3 exchange markets: An EGARCH-M approach
title_full Stability in ASEAN+3 exchange markets: An EGARCH-M approach
title_fullStr Stability in ASEAN+3 exchange markets: An EGARCH-M approach
title_full_unstemmed Stability in ASEAN+3 exchange markets: An EGARCH-M approach
title_short Stability in ASEAN+3 exchange markets: An EGARCH-M approach
title_sort stability in asean+3 exchange markets: an egarch-m approach
topic HG3810 Foreign exchange
url http://irep.iium.edu.my/52785/
http://irep.iium.edu.my/52785/
http://irep.iium.edu.my/52785/1/Stability%20in%20ASEAN%2B3%20exchange%20markets-%20An%20EGARCH-M%20approach.pdf