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Exchange-rate volatility and industry trade between the U.S. and Malaysia

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  • Bahmani-Oskooee, Mohsen
  • Harvey, Hanafiah

Abstract

Previous research that investigated the impact of exchange rate volatility on the trade flows of Malaysia concentrated only on the aggregate exports of Malaysia to the rest of the world. In this paper we first concentrate on the trade flows between Malaysia and the U.S. After showing that exchange rate volatility has neither short-run nor long-run effect on the trade flows between the two countries, we disaggregate the trade data by industry and consider the experience of 101 U.S. exporting industries to Malaysia and 17 U.S. importing industries from Malaysia. While exchange rate volatility seems to have significant short-run effects on the trade flows of most industries, short-run effects translate into the long run only in a limited number of small industries.

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Bibliographic Info

Article provided by Elsevier in its journal Research in International Business and Finance.

Volume (Year): 25 (2011)
Issue (Month): 2 (June)
Pages: 127-155

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Handle: RePEc:eee:riibaf:v:25:y:2011:i:2:p:127-155

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Web page: http://www.elsevier.com/locate/ribaf

Related research

Keywords: Malaysia U.S. Commodity trade Exchange rate volatility;

References

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Cited by:
  1. Wang, Yi-Hsien & Lee, Jun-De, 2012. "Estimating the import demand function for China," Economic Modelling, Elsevier, vol. 29(6), pages 2591-2596.

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