The study of exchange rates behavior in Malaysia by using NATREX model
This paper aims to estimate equilibrium exchange rates and identify the determinants of macroeconomics fundamentals affecting exchange rates in Malaysia. By using Natural Real Exchange Rates (NATREX) model, this study adopts the Autoregressive Distributed Lag (ARDL) model to examine the long run rel...
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| Format: | Article |
| Language: | English |
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Faculty of Science and Technology, University of El Oued
2017
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| Online Access: | http://psasir.upm.edu.my/id/eprint/63533/ http://psasir.upm.edu.my/id/eprint/63533/1/The%20study%20of%20exchange%20rates%20behavior%20in%20Malaysia%20by%20using%20NATREX%20model.pdf |
| _version_ | 1848854811366129664 |
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| author | Johari, Mohamad Shukri Habibullah, Muzafar Shah Yusop, Zulkornain Lee, Chin |
| author_facet | Johari, Mohamad Shukri Habibullah, Muzafar Shah Yusop, Zulkornain Lee, Chin |
| author_sort | Johari, Mohamad Shukri |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This paper aims to estimate equilibrium exchange rates and identify the determinants of macroeconomics fundamentals affecting exchange rates in Malaysia. By using Natural Real Exchange Rates (NATREX) model, this study adopts the Autoregressive Distributed Lag (ARDL) model to examine the long run relationships (or cointegration) among variables and the dynamic effect within variables in the short run for the period 1970 to 2012. The results suggest that the terms of trade, dependency ratio of the young, and foreign direct investment play an important role in influencing the exchange rates movement in Malaysia. The result also reveals that the misalignment of exchange rates is quite small and stable in Malaysia during 1983 to 2012, except in 1995. |
| first_indexed | 2025-11-15T11:15:48Z |
| format | Article |
| id | upm-63533 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:15:48Z |
| publishDate | 2017 |
| publisher | Faculty of Science and Technology, University of El Oued |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-635332019-10-21T02:20:13Z http://psasir.upm.edu.my/id/eprint/63533/ The study of exchange rates behavior in Malaysia by using NATREX model Johari, Mohamad Shukri Habibullah, Muzafar Shah Yusop, Zulkornain Lee, Chin This paper aims to estimate equilibrium exchange rates and identify the determinants of macroeconomics fundamentals affecting exchange rates in Malaysia. By using Natural Real Exchange Rates (NATREX) model, this study adopts the Autoregressive Distributed Lag (ARDL) model to examine the long run relationships (or cointegration) among variables and the dynamic effect within variables in the short run for the period 1970 to 2012. The results suggest that the terms of trade, dependency ratio of the young, and foreign direct investment play an important role in influencing the exchange rates movement in Malaysia. The result also reveals that the misalignment of exchange rates is quite small and stable in Malaysia during 1983 to 2012, except in 1995. Faculty of Science and Technology, University of El Oued 2017-09 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/63533/1/The%20study%20of%20exchange%20rates%20behavior%20in%20Malaysia%20by%20using%20NATREX%20model.pdf Johari, Mohamad Shukri and Habibullah, Muzafar Shah and Yusop, Zulkornain and Lee, Chin (2017) The study of exchange rates behavior in Malaysia by using NATREX model. Journal of Fundamental and Applied Sciences, 9 (3S). pp. 697-715. ISSN 1112-9867 https://www.ajol.info/index.php/jfas/article/view/165596/155055 10.4314/jfas.v9i3s.55 |
| spellingShingle | Johari, Mohamad Shukri Habibullah, Muzafar Shah Yusop, Zulkornain Lee, Chin The study of exchange rates behavior in Malaysia by using NATREX model |
| title | The study of exchange rates behavior in Malaysia by using NATREX model |
| title_full | The study of exchange rates behavior in Malaysia by using NATREX model |
| title_fullStr | The study of exchange rates behavior in Malaysia by using NATREX model |
| title_full_unstemmed | The study of exchange rates behavior in Malaysia by using NATREX model |
| title_short | The study of exchange rates behavior in Malaysia by using NATREX model |
| title_sort | study of exchange rates behavior in malaysia by using natrex model |
| url | http://psasir.upm.edu.my/id/eprint/63533/ http://psasir.upm.edu.my/id/eprint/63533/ http://psasir.upm.edu.my/id/eprint/63533/ http://psasir.upm.edu.my/id/eprint/63533/1/The%20study%20of%20exchange%20rates%20behavior%20in%20Malaysia%20by%20using%20NATREX%20model.pdf |