Sustainability of External Imbalances: The Case of Malaysia
The understanding of the sustainable external imbalances over the 1961-2001 for Malaysia is presented in this paper. The empirical results clearly show that inflows and outflows share a common stochastic trend prior to the 1997 Asian crisis while in the post-crisis period the current account surplus...
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| Format: | Article |
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World Scientific
2003
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| Online Access: | http://ir.unimas.my/id/eprint/17826/ |
| _version_ | 1848838377547235328 |
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| author | Evan, Lau Ahmad Zubaidi, Baharumshah |
| author_facet | Evan, Lau Ahmad Zubaidi, Baharumshah |
| author_sort | Evan, Lau |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | The understanding of the sustainable external imbalances over the 1961-2001 for Malaysia is presented in this paper. The empirical results clearly show that inflows and outflows share a common stochastic trend prior to the 1997 Asian crisis while in the post-crisis period the current account surpluses are on an unsustainable path. Our findings highlight the important role of imports (mainly intermediate inputs) in exports. For an economy that depends on export promotion for its growth process, imports are important in restoring external imbalances to its sustainable steady state path. As illustrated by the recent crisis, the large depreciation of the ringgit contributed to a decline in imports and for an economy that is highly dependent on imported capital, this means an economic slowdown. |
| first_indexed | 2025-11-15T06:54:35Z |
| format | Article |
| id | unimas-17826 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| last_indexed | 2025-11-15T06:54:35Z |
| publishDate | 2003 |
| publisher | World Scientific |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-178262017-09-28T06:02:52Z http://ir.unimas.my/id/eprint/17826/ Sustainability of External Imbalances: The Case of Malaysia Evan, Lau Ahmad Zubaidi, Baharumshah HB Economic Theory The understanding of the sustainable external imbalances over the 1961-2001 for Malaysia is presented in this paper. The empirical results clearly show that inflows and outflows share a common stochastic trend prior to the 1997 Asian crisis while in the post-crisis period the current account surpluses are on an unsustainable path. Our findings highlight the important role of imports (mainly intermediate inputs) in exports. For an economy that depends on export promotion for its growth process, imports are important in restoring external imbalances to its sustainable steady state path. As illustrated by the recent crisis, the large depreciation of the ringgit contributed to a decline in imports and for an economy that is highly dependent on imported capital, this means an economic slowdown. World Scientific 2003 Article PeerReviewed Evan, Lau and Ahmad Zubaidi, Baharumshah (2003) Sustainability of External Imbalances: The Case of Malaysia. The Singapore Economic Review, 48 (1). ISSN 1793-6837 http://www.worldscientific.com/doi/abs/10.1142/S0217590803000591 doi : 10.1142/S0217590803000591 |
| spellingShingle | HB Economic Theory Evan, Lau Ahmad Zubaidi, Baharumshah Sustainability of External Imbalances: The Case of Malaysia |
| title | Sustainability of External Imbalances: The Case of Malaysia |
| title_full | Sustainability of External Imbalances: The Case of Malaysia |
| title_fullStr | Sustainability of External Imbalances: The Case of Malaysia |
| title_full_unstemmed | Sustainability of External Imbalances: The Case of Malaysia |
| title_short | Sustainability of External Imbalances: The Case of Malaysia |
| title_sort | sustainability of external imbalances: the case of malaysia |
| topic | HB Economic Theory |
| url | http://ir.unimas.my/id/eprint/17826/ http://ir.unimas.my/id/eprint/17826/ http://ir.unimas.my/id/eprint/17826/ |