Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade
This article empirically evaluates Malaysian foreign trade effects through two types of exchange rate variability; misalignments and volatility across different exchange rate regimes from 1991:Q1 to 2003:Q4. The Natural Real Exchange Rate (NATREX) equilibrium model is employed to generate the real e...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2010
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| Online Access: | http://psasir.upm.edu.my/id/eprint/22530/ http://psasir.upm.edu.my/id/eprint/22530/1/Exchange%20rate%20regime%2C%20exchange%20rate%20variability%20and%20flows%20of%20Malaysia%27s%20foreign%20trade.pdf |
| _version_ | 1848844509673160704 |
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| author | Niaz Ahmad, Mohd Naseem Tan, Hui Boon Mohd, Siti Hamizah |
| author_facet | Niaz Ahmad, Mohd Naseem Tan, Hui Boon Mohd, Siti Hamizah |
| author_sort | Niaz Ahmad, Mohd Naseem |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This article empirically evaluates Malaysian foreign trade effects through two types of exchange rate variability; misalignments and volatility across different exchange rate regimes from 1991:Q1 to 2003:Q4. The Natural Real Exchange Rate (NATREX) equilibrium model is employed to generate the real exchange rate misalignment while the GARCH (1, 1) model is used to measure the real exchange rate volatility, which is then tested in a model of Malaysian imports and exports. This paper differs from existing literature as the effects of exchange rate misalignment significantly hastened the level of Malaysian exports and imports for the periods, managed floating and pegged rate. On the other hand, the exchange rate volatility has merely promoted the Malaysian exports and imports during the implementation of pegged rate. This proposes that the variability of exchange rate and exchange rate regimes are important determinants in inspiring Malaysian foreign trade, especially during the 1997 financial crisis when the economic is distressed. |
| first_indexed | 2025-11-15T08:32:03Z |
| format | Article |
| id | upm-22530 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T08:32:03Z |
| publishDate | 2010 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-225302016-02-01T08:26:54Z http://psasir.upm.edu.my/id/eprint/22530/ Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade Niaz Ahmad, Mohd Naseem Tan, Hui Boon Mohd, Siti Hamizah This article empirically evaluates Malaysian foreign trade effects through two types of exchange rate variability; misalignments and volatility across different exchange rate regimes from 1991:Q1 to 2003:Q4. The Natural Real Exchange Rate (NATREX) equilibrium model is employed to generate the real exchange rate misalignment while the GARCH (1, 1) model is used to measure the real exchange rate volatility, which is then tested in a model of Malaysian imports and exports. This paper differs from existing literature as the effects of exchange rate misalignment significantly hastened the level of Malaysian exports and imports for the periods, managed floating and pegged rate. On the other hand, the exchange rate volatility has merely promoted the Malaysian exports and imports during the implementation of pegged rate. This proposes that the variability of exchange rate and exchange rate regimes are important determinants in inspiring Malaysian foreign trade, especially during the 1997 financial crisis when the economic is distressed. Penerbit Universiti Kebangsaan Malaysia 2010 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22530/1/Exchange%20rate%20regime%2C%20exchange%20rate%20variability%20and%20flows%20of%20Malaysia%27s%20foreign%20trade.pdf Niaz Ahmad, Mohd Naseem and Tan, Hui Boon and Mohd, Siti Hamizah (2010) Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade. Jurnal Ekonomi Malaysia, 44. pp. 35-49. ISSN 0126-1962 http://www.ukm.my/fep/jem/content/2010.html |
| spellingShingle | Niaz Ahmad, Mohd Naseem Tan, Hui Boon Mohd, Siti Hamizah Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade |
| title | Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade |
| title_full | Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade |
| title_fullStr | Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade |
| title_full_unstemmed | Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade |
| title_short | Exchange rate regime, exchange rate variability and flows of Malaysia's foreign trade |
| title_sort | exchange rate regime, exchange rate variability and flows of malaysia's foreign trade |
| url | http://psasir.upm.edu.my/id/eprint/22530/ http://psasir.upm.edu.my/id/eprint/22530/ http://psasir.upm.edu.my/id/eprint/22530/1/Exchange%20rate%20regime%2C%20exchange%20rate%20variability%20and%20flows%20of%20Malaysia%27s%20foreign%20trade.pdf |