Exchange rate stability and import penetration: The case of Malaysia and Singapore
In this research, the relationship of nominal exchange rate stability and import penetration between Malaysia (developing economy) and Singapore (developed economy) are being examined. The time series data employed in this research consist of annual data ranging from year 1980 to 2010. The method...
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| Format: | Thesis |
| Language: | English |
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Universiti Malaysia Sarawak, (UNIMAS)
2013
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| Online Access: | http://ir.unimas.my/id/eprint/9078/ http://ir.unimas.my/id/eprint/9078/2/Tyson%28fulltext%29.pdf |
| Summary: | In this research, the relationship of nominal exchange rate stability and import
penetration between Malaysia (developing economy) and Singapore (developed
economy) are being examined. The time series data employed in this research consist
of annual data ranging from year 1980 to 2010. The methodology applied in this
research comprises of Augmented Dickey Fuller (ADF) unit root test, Johansen and
Juselius cointegration test as well as Granger causality test based on Vector Error
Correction Model (VECMY In the cases for both countries under review, the
Co integration test shows that there is an existence of long run equilibrium linkage
between both variables employed. Also, in short run, the Granger causality test
shows a positive bi-directional relationship from the independent variable (nominal
exchange rate stability) to dependent variable (import penetration ratio). Though the
relationship of both variables is similar between both countries, the degree of its
relationship varies. |
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