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: | Article |
| Language: | English |
| Published: |
2009
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| Online Access: | http://irep.iium.edu.my/7966/ http://irep.iium.edu.my/7966/1/Exchange_rate_misalignment_and_capital_inflows_An_endogenous_threshold_analysis_for_Malaysia.pdf |
| _version_ | 1848776928518995968 |
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| author | Mohd Sidek, Noor Zahirah Yusoff, Mohammed Qaiser, Munir |
| author_facet | Mohd Sidek, Noor Zahirah Yusoff, Mohammed Qaiser, Munir |
| 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. |
| first_indexed | 2025-11-14T14:37:53Z |
| format | Article |
| id | iium-7966 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T14:37:53Z |
| publishDate | 2009 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | iium-79662011-11-24T21:06:46Z http://irep.iium.edu.my/7966/ Exchange rate misalignment and capital inflows: An endogenous threshold analysis for Malaysia Mohd Sidek, Noor Zahirah Yusoff, Mohammed Qaiser, Munir H Social Sciences (General) HB Economic Theory HC Economic History and Conditions 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. 2009 Article PeerReviewed application/pdf en http://irep.iium.edu.my/7966/1/Exchange_rate_misalignment_and_capital_inflows_An_endogenous_threshold_analysis_for_Malaysia.pdf Mohd Sidek, Noor Zahirah and Yusoff, Mohammed and Qaiser, Munir (2009) Exchange rate misalignment and capital inflows: An endogenous threshold analysis for Malaysia. Economics Bulletin, 29 (4). pp. 2700-2711. ISSN 1545-2921 http://www.accessecon.com/Pubs/EB/2009/Volume29/EB-09-V29-I4-P23.pdf |
| spellingShingle | H Social Sciences (General) HB Economic Theory HC Economic History and Conditions Mohd Sidek, Noor Zahirah Yusoff, Mohammed Qaiser, Munir 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 | H Social Sciences (General) HB Economic Theory HC Economic History and Conditions |
| url | http://irep.iium.edu.my/7966/ http://irep.iium.edu.my/7966/ http://irep.iium.edu.my/7966/1/Exchange_rate_misalignment_and_capital_inflows_An_endogenous_threshold_analysis_for_Malaysia.pdf |