Exchange rate misalignment and economic growth: recent evidence in Malaysia

The present study aims at investigating the growth effects of real exchange rate misalignments in Malaysia over the period 1991:1-2009:4. The RER misalignment is built through the estimation of the NATREX equilibrium model. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach to c...

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Main Authors: Niaz Ahmad, Mohd Naseem, M. S., Hamizah
Format: Article
Language:English
Published: Universiti Putra Malaysia Press 2013
Online Access:http://psasir.upm.edu.my/id/eprint/30858/
http://psasir.upm.edu.my/id/eprint/30858/1/Exchange%20Rate%20Misalignment%20and%20Economic%20Growth.pdf
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author Niaz Ahmad, Mohd Naseem
M. S., Hamizah
author_facet Niaz Ahmad, Mohd Naseem
M. S., Hamizah
author_sort Niaz Ahmad, Mohd Naseem
building UPM Institutional Repository
collection Online Access
description The present study aims at investigating the growth effects of real exchange rate misalignments in Malaysia over the period 1991:1-2009:4. The RER misalignment is built through the estimation of the NATREX equilibrium model. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration framework, the results indicate the presence of positive and significant relationship between the RER misalignment and economic growth. This finding obtained is consistent with the notion that the RER misalignment through the distortion in relative price has systematic influence on the pattern of economic development.
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spelling upm-308582015-09-21T00:59:18Z http://psasir.upm.edu.my/id/eprint/30858/ Exchange rate misalignment and economic growth: recent evidence in Malaysia Niaz Ahmad, Mohd Naseem M. S., Hamizah The present study aims at investigating the growth effects of real exchange rate misalignments in Malaysia over the period 1991:1-2009:4. The RER misalignment is built through the estimation of the NATREX equilibrium model. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration framework, the results indicate the presence of positive and significant relationship between the RER misalignment and economic growth. This finding obtained is consistent with the notion that the RER misalignment through the distortion in relative price has systematic influence on the pattern of economic development. Universiti Putra Malaysia Press 2013-09 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/30858/1/Exchange%20Rate%20Misalignment%20and%20Economic%20Growth.pdf Niaz Ahmad, Mohd Naseem and M. S., Hamizah (2013) Exchange rate misalignment and economic growth: recent evidence in Malaysia. Pertanika Journal of Social Sciences & Humanities, 21 (spec. Sep.). pp. 47-66. ISSN 0128-7702; ESSN: 2231-8534 http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20%28S%29%20Sep.%202013/04%20Page%2047-66.pdf
spellingShingle Niaz Ahmad, Mohd Naseem
M. S., Hamizah
Exchange rate misalignment and economic growth: recent evidence in Malaysia
title Exchange rate misalignment and economic growth: recent evidence in Malaysia
title_full Exchange rate misalignment and economic growth: recent evidence in Malaysia
title_fullStr Exchange rate misalignment and economic growth: recent evidence in Malaysia
title_full_unstemmed Exchange rate misalignment and economic growth: recent evidence in Malaysia
title_short Exchange rate misalignment and economic growth: recent evidence in Malaysia
title_sort exchange rate misalignment and economic growth: recent evidence in malaysia
url http://psasir.upm.edu.my/id/eprint/30858/
http://psasir.upm.edu.my/id/eprint/30858/
http://psasir.upm.edu.my/id/eprint/30858/1/Exchange%20Rate%20Misalignment%20and%20Economic%20Growth.pdf