The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence
The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointe...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2021
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| Online Access: | http://journalarticle.ukm.my/18790/ http://journalarticle.ukm.my/18790/1/jeko_552-7-2.pdf |
| _version_ | 1848814667421450240 |
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| author | J. M. Shukri, Muzafar Shah Habibullah, Roseziahazni Abdul Ghani, M. A. M. Suhaily, |
| author_facet | J. M. Shukri, Muzafar Shah Habibullah, Roseziahazni Abdul Ghani, M. A. M. Suhaily, |
| author_sort | J. M. Shukri, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointegration among variables and the dynamic effect within variables in the short-run over the sample period. The results suggest that inflation rate and national income growth rate play important roles in influencing exchange rate movement. The results also reveal that the misalignment of exchange rates is quite small and stable during 1988 to 2019, except for 2015 which was attributed to the weaker growth in China. Consecutively, this study suggests that the parity condition is only important in the long-run in explaining exchange rates behaviour for the sample country. |
| first_indexed | 2025-11-15T00:37:44Z |
| format | Article |
| id | oai:generic.eprints.org:18790 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:37:44Z |
| publishDate | 2021 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:187902022-06-23T08:20:01Z http://journalarticle.ukm.my/18790/ The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence J. M. Shukri, Muzafar Shah Habibullah, Roseziahazni Abdul Ghani, M. A. M. Suhaily, The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointegration among variables and the dynamic effect within variables in the short-run over the sample period. The results suggest that inflation rate and national income growth rate play important roles in influencing exchange rate movement. The results also reveal that the misalignment of exchange rates is quite small and stable during 1988 to 2019, except for 2015 which was attributed to the weaker growth in China. Consecutively, this study suggests that the parity condition is only important in the long-run in explaining exchange rates behaviour for the sample country. Penerbit Universiti Kebangsaan Malaysia 2021 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/18790/1/jeko_552-7-2.pdf J. M. Shukri, and Muzafar Shah Habibullah, and Roseziahazni Abdul Ghani, and M. A. M. Suhaily, (2021) The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence. Jurnal Ekonomi Malaysia, 55 (2). pp. 81-89. ISSN 0127-1962 https://www.ukm.my/jem/issue/v55i2/ |
| spellingShingle | J. M. Shukri, Muzafar Shah Habibullah, Roseziahazni Abdul Ghani, M. A. M. Suhaily, The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence |
| title | The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence |
| title_full | The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence |
| title_fullStr | The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence |
| title_full_unstemmed | The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence |
| title_short | The macroeconomic fundamentals of the real exchange rate in Malaysia : some empirical evidence |
| title_sort | macroeconomic fundamentals of the real exchange rate in malaysia : some empirical evidence |
| url | http://journalarticle.ukm.my/18790/ http://journalarticle.ukm.my/18790/ http://journalarticle.ukm.my/18790/1/jeko_552-7-2.pdf |