Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia

The purpose of this study is to examine the relationship of Exchange Rate volatility and its determinants from 1976:Ql to 2007:Q4. The ARCHJGARCH techniques are applied to better capture the time-varying characteristics of volatility and the exchange rate volatility series were generated utilizing...

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Main Author: Kong, Chek Hang
Format: Thesis
Language:English
Published: Universiti Malaysia Sarawak, (UNIMAS) 2010
Subjects:
Online Access:http://ir.unimas.my/id/eprint/9036/
http://ir.unimas.my/id/eprint/9036/1/Kong.pdf
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author Kong, Chek Hang
author_facet Kong, Chek Hang
author_sort Kong, Chek Hang
building UNIMAS Institutional Repository
collection Online Access
description The purpose of this study is to examine the relationship of Exchange Rate volatility and its determinants from 1976:Ql to 2007:Q4. The ARCHJGARCH techniques are applied to better capture the time-varying characteristics of volatility and the exchange rate volatility series were generated utilizing the GARCH mOd0 The empirical results of Philips and Perron test reveal that all the variables are non-stationary in levels but stationary in first differences except for volatility which shows stationary in levels. Then, Johansen's co integration test indicates long run relationships between the variables where two cointegrating vector were existed and finally, Granger causality in the vector error-correction model is employed to scrutinize short run relationships between the variables. Hence, investment seems to have significant influence towards volatility in all macroeconomics factors. The Government's currency rationing policy tends to lessen the volatility, proving that the policy-induced changes in exchange rate have stabilizing effect on its determinants.
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spelling unimas-90362023-06-20T03:25:58Z http://ir.unimas.my/id/eprint/9036/ Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia Kong, Chek Hang HB Economic Theory The purpose of this study is to examine the relationship of Exchange Rate volatility and its determinants from 1976:Ql to 2007:Q4. The ARCHJGARCH techniques are applied to better capture the time-varying characteristics of volatility and the exchange rate volatility series were generated utilizing the GARCH mOd0 The empirical results of Philips and Perron test reveal that all the variables are non-stationary in levels but stationary in first differences except for volatility which shows stationary in levels. Then, Johansen's co integration test indicates long run relationships between the variables where two cointegrating vector were existed and finally, Granger causality in the vector error-correction model is employed to scrutinize short run relationships between the variables. Hence, investment seems to have significant influence towards volatility in all macroeconomics factors. The Government's currency rationing policy tends to lessen the volatility, proving that the policy-induced changes in exchange rate have stabilizing effect on its determinants. Universiti Malaysia Sarawak, (UNIMAS) 2010 Thesis NonPeerReviewed text en http://ir.unimas.my/id/eprint/9036/1/Kong.pdf Kong, Chek Hang (2010) Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia. Masters thesis, Universiti Malaysia Sarawak, (UNIMAS).
spellingShingle HB Economic Theory
Kong, Chek Hang
Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia
title Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia
title_full Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia
title_fullStr Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia
title_full_unstemmed Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia
title_short Exchange rate volatility and macroeconomic determinants: a comparative analysis for Malaysia
title_sort exchange rate volatility and macroeconomic determinants: a comparative analysis for malaysia
topic HB Economic Theory
url http://ir.unimas.my/id/eprint/9036/
http://ir.unimas.my/id/eprint/9036/1/Kong.pdf