Dynamic relationships of capital flight and macroeconomic fundamentals in Malaysia
Understanding the very factors that influence massive capital outflow from an economy is vitally important as it may assist decision makers in formulating effective strategies which can not only mitigate such capital flight but also slow down the deterioration of the economy and even re-generate i...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia
2016
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| Online Access: | http://journalarticle.ukm.my/9825/ http://journalarticle.ukm.my/9825/1/18x.geografia-si-feb16-azryani-edam_%281%29.pdf |
| _version_ | 1848812197371707392 |
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| author | Noor Azryani Auzairy, Chan Soh Fun, Tan Li Ching, Soo Bow Li, Chua Siew Fung, |
| author_facet | Noor Azryani Auzairy, Chan Soh Fun, Tan Li Ching, Soo Bow Li, Chua Siew Fung, |
| author_sort | Noor Azryani Auzairy, |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | Understanding the very factors that influence massive capital outflow from an economy is vitally important as it
may assist decision makers in formulating effective strategies which can not only mitigate such capital flight but
also slow down the deterioration of the economy and even re-generate it. This paper analyzed the dynamic interaction
between macroeconomic fundamentals and capital flight using co-integration and vector auto-regression. The
macroeconomic fundamentals considered were exchange rates, consumer price index, gross domestic products and
interest rates. The results show that macroeconomic fundamentals and capital flight are associated in the long run. In
terms of short-run dynamics and interactions between capital flight and macroeconomic fundamentals, variations in
capital flight are predominantly attributed to its own variations and exchange rate variations. Innovations in capital
flight explain substantial fractions of the GDP, exchange rate, interest rate and CPI variations. |
| first_indexed | 2025-11-14T23:58:28Z |
| format | Article |
| id | oai:generic.eprints.org:9825 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T23:58:28Z |
| publishDate | 2016 |
| publisher | School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:98252016-12-14T06:50:57Z http://journalarticle.ukm.my/9825/ Dynamic relationships of capital flight and macroeconomic fundamentals in Malaysia Noor Azryani Auzairy, Chan Soh Fun, Tan Li Ching, Soo Bow Li, Chua Siew Fung, Understanding the very factors that influence massive capital outflow from an economy is vitally important as it may assist decision makers in formulating effective strategies which can not only mitigate such capital flight but also slow down the deterioration of the economy and even re-generate it. This paper analyzed the dynamic interaction between macroeconomic fundamentals and capital flight using co-integration and vector auto-regression. The macroeconomic fundamentals considered were exchange rates, consumer price index, gross domestic products and interest rates. The results show that macroeconomic fundamentals and capital flight are associated in the long run. In terms of short-run dynamics and interactions between capital flight and macroeconomic fundamentals, variations in capital flight are predominantly attributed to its own variations and exchange rate variations. Innovations in capital flight explain substantial fractions of the GDP, exchange rate, interest rate and CPI variations. School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia 2016-02 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9825/1/18x.geografia-si-feb16-azryani-edam_%281%29.pdf Noor Azryani Auzairy, and Chan Soh Fun, and Tan Li Ching, and Soo Bow Li, and Chua Siew Fung, (2016) Dynamic relationships of capital flight and macroeconomic fundamentals in Malaysia. Geografia : Malaysian Journal of Society and Space, 12 (2). pp. 203-211. ISSN 2180-2491 http://www.ukm.my/geografia/v2/index.php?cont=a&item=2&thn=2016&vol=12&issue=2&ver=loc |
| spellingShingle | Noor Azryani Auzairy, Chan Soh Fun, Tan Li Ching, Soo Bow Li, Chua Siew Fung, Dynamic relationships of capital flight and macroeconomic fundamentals in Malaysia |
| title | Dynamic relationships of capital flight and macroeconomic
fundamentals in Malaysia |
| title_full | Dynamic relationships of capital flight and macroeconomic
fundamentals in Malaysia |
| title_fullStr | Dynamic relationships of capital flight and macroeconomic
fundamentals in Malaysia |
| title_full_unstemmed | Dynamic relationships of capital flight and macroeconomic
fundamentals in Malaysia |
| title_short | Dynamic relationships of capital flight and macroeconomic
fundamentals in Malaysia |
| title_sort | dynamic relationships of capital flight and macroeconomic
fundamentals in malaysia |
| url | http://journalarticle.ukm.my/9825/ http://journalarticle.ukm.my/9825/ http://journalarticle.ukm.my/9825/1/18x.geografia-si-feb16-azryani-edam_%281%29.pdf |