The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf
The objective of this paper is to analyse the long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners, comprising the United States, Singapore, Japan, United Kingdom, and Republic of Korea over the monthly period 1990:1 to...
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| Format: | Article |
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Universiti Teknologi MARA, Jengka
2008
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| Online Access: | https://ir.uitm.edu.my/id/eprint/10116/ |
| _version_ | 1848802927760637952 |
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| author | Md Yusuf, Mazila |
| author_facet | Md Yusuf, Mazila |
| author_sort | Md Yusuf, Mazila |
| building | UiTM Institutional Repository |
| collection | Online Access |
| description | The objective of this paper is to analyse the long-run impact of
bilateral real exchange rate volatility on Malaysia’s bilateral trade
balance with its major trading partners, comprising the United
States, Singapore, Japan, United Kingdom, and Republic of Korea
over the monthly period 1990:1 to 2002:12. The long-run impact
will be analysed using the cointegration analysis and a vector error
correction model (VECM) framework which treats all variables in
the model as potentially endogenous. In this study, the GARCH model
is employed to measure the bilateral exchange rate volatility. Our
findings revealed that there is a positive long-run impact of exchange
rate volatility on the trade balance of Malaysia with the United
States, a negative long-run impact on the trade balance of Malaysia
with Singapore and no impact on the trade balance of Malaysia
with the other three countries. |
| first_indexed | 2025-11-14T21:31:08Z |
| format | Article |
| id | uitm-10116 |
| institution | Universiti Teknologi MARA |
| institution_category | Local University |
| last_indexed | 2025-11-14T21:31:08Z |
| publishDate | 2008 |
| publisher | Universiti Teknologi MARA, Jengka |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | uitm-101162017-11-16T03:53:45Z https://ir.uitm.edu.my/id/eprint/10116/ The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf Md Yusuf, Mazila International finance Foreign exchange. Foreign exchange rates The objective of this paper is to analyse the long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners, comprising the United States, Singapore, Japan, United Kingdom, and Republic of Korea over the monthly period 1990:1 to 2002:12. The long-run impact will be analysed using the cointegration analysis and a vector error correction model (VECM) framework which treats all variables in the model as potentially endogenous. In this study, the GARCH model is employed to measure the bilateral exchange rate volatility. Our findings revealed that there is a positive long-run impact of exchange rate volatility on the trade balance of Malaysia with the United States, a negative long-run impact on the trade balance of Malaysia with Singapore and no impact on the trade balance of Malaysia with the other three countries. Universiti Teknologi MARA, Jengka 2008 Article PeerReviewed Md Yusuf, Mazila (2008) The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf. (2008) Gading Business and Management Journal <https://ir.uitm.edu.my/view/publication/Gading_Business_and_Management_Journal.html>, 12 (1). pp. 87-103. ISSN 0128-5599 |
| spellingShingle | International finance Foreign exchange. Foreign exchange rates Md Yusuf, Mazila The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf |
| title | The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf |
| title_full | The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf |
| title_fullStr | The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf |
| title_full_unstemmed | The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf |
| title_short | The long-run impact of bilateral real exchange rate volatility on Malaysia’s bilateral trade balance with its major trading partners / Mazila Md Yusuf |
| title_sort | long-run impact of bilateral real exchange rate volatility on malaysia’s bilateral trade balance with its major trading partners / mazila md yusuf |
| topic | International finance Foreign exchange. Foreign exchange rates |
| url | https://ir.uitm.edu.my/id/eprint/10116/ |