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Testing Transmission Mechanisms on Economic Growth in Malaysia

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  • Wai Ching Poon

Abstract

This paper examines various transmission mechanism channels on economic growth in Malaysia over the quarterly period 1980:1-2004:4 using bounds testing approach. The bounds test reveals evidence of cointegration between the real GDP and the real exchange rate and share prices that address the exchange rate and asset price channels as the key transmission mechanisms in the conduct of the monetary policy stance. Nevertheless, the saving interest rate and credit channels are of insignificant.

Suggested Citation

  • Wai Ching Poon, 2010. "Testing Transmission Mechanisms on Economic Growth in Malaysia," Monash Economics Working Papers 26-10, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2010-26
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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2010/2610transmissionpoon.pdf
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    Cited by:

    1. Muhammad Khoirul Fuddin, 2014. "Effectiveness of monetary policy transmission in Indonesia," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 6(2), pages 119-130, April.

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    More about this item

    Keywords

    cointegration; transmission mechanism channels; monetary policy stance; bounds test; Malaysia;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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