Exchange rate misalignment, volatility and import flows in Malaysia
This paper investigates the effect of real exchange rate misalignment and volatility on Malaysian import flows during 1991:Q1 to 2003:Q4. A measure of the quantitative proxy of the real exchange rate misalignment is constructed using the Natural Real Exchange Rate (NATREX) equilibrium model, whereas...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Faculty of Economics and Management, Universiti Putra Malaysia
2009
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| Online Access: | http://psasir.upm.edu.my/id/eprint/39450/ http://psasir.upm.edu.my/id/eprint/39450/1/39450.pdf |
| _version_ | 1848849146138591232 |
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| author | Mohd Naseem, Niaz Ahmad Tan, Hui Boon Mohd, Siti Hamizah |
| author_facet | Mohd Naseem, Niaz Ahmad Tan, Hui Boon Mohd, Siti Hamizah |
| author_sort | Mohd Naseem, Niaz Ahmad |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper investigates the effect of real exchange rate misalignment and volatility on Malaysian import flows during 1991:Q1 to 2003:Q4. A measure of the quantitative proxy of the real exchange rate misalignment is constructed using the Natural Real Exchange Rate (NATREX) equilibrium model, whereas the volatility of real exchange rate is generated from the GARCH model. This paper differs from existing literature as the effects of exchange rate misalignment significantly hastened the level of Malaysian imports for period of the study. The empirical results also show that the exchange rate volatility has merely promoted the Malaysian imports during the crisis period. This suggests that the exchange rate misalignment and volatility are important determinants in inspiring Malaysian import flows, especially during the 1997 Asian financial crisis. |
| first_indexed | 2025-11-15T09:45:45Z |
| format | Article |
| id | upm-39450 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T09:45:45Z |
| publishDate | 2009 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-394502015-08-03T04:46:52Z http://psasir.upm.edu.my/id/eprint/39450/ Exchange rate misalignment, volatility and import flows in Malaysia Mohd Naseem, Niaz Ahmad Tan, Hui Boon Mohd, Siti Hamizah This paper investigates the effect of real exchange rate misalignment and volatility on Malaysian import flows during 1991:Q1 to 2003:Q4. A measure of the quantitative proxy of the real exchange rate misalignment is constructed using the Natural Real Exchange Rate (NATREX) equilibrium model, whereas the volatility of real exchange rate is generated from the GARCH model. This paper differs from existing literature as the effects of exchange rate misalignment significantly hastened the level of Malaysian imports for period of the study. The empirical results also show that the exchange rate volatility has merely promoted the Malaysian imports during the crisis period. This suggests that the exchange rate misalignment and volatility are important determinants in inspiring Malaysian import flows, especially during the 1997 Asian financial crisis. Faculty of Economics and Management, Universiti Putra Malaysia 2009-06 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/39450/1/39450.pdf Mohd Naseem, Niaz Ahmad and Tan, Hui Boon and Mohd, Siti Hamizah (2009) Exchange rate misalignment, volatility and import flows in Malaysia. International Journal of Economics and Management, 3 (1). pp. 130-150. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol3_no1.htm |
| spellingShingle | Mohd Naseem, Niaz Ahmad Tan, Hui Boon Mohd, Siti Hamizah Exchange rate misalignment, volatility and import flows in Malaysia |
| title | Exchange rate misalignment, volatility and import flows in Malaysia |
| title_full | Exchange rate misalignment, volatility and import flows in Malaysia |
| title_fullStr | Exchange rate misalignment, volatility and import flows in Malaysia |
| title_full_unstemmed | Exchange rate misalignment, volatility and import flows in Malaysia |
| title_short | Exchange rate misalignment, volatility and import flows in Malaysia |
| title_sort | exchange rate misalignment, volatility and import flows in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/39450/ http://psasir.upm.edu.my/id/eprint/39450/ http://psasir.upm.edu.my/id/eprint/39450/1/39450.pdf |