Export and Import Cointegration in Forestry Domain: The Case of Malaysia
AbstractThis study was undertaken to explore the relationship between the export and import in the category of Forestry domain for Malaysia which includes sub domain (1)industrial roundwood; (2)wood pulp; (3)wood fuel; (4) paper and paper board; (5) sawn wood; (6) recovered paper and (7)wood base panel. Johansen (1991) cointegration method was employed and the period of the study covers monthly data from 1961 to 2007. The results clearly show that the export and import of forestry domain is highly cointegrated. Bi-directional granger causality could be detected based on VECM method. Imports seems to positively and significantly affect exports, both in the long run and short run, vice versa.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16673.
Date of creation: 04 Aug 2009
Date of revision:
Johansen cointegration test; forestry trade; VECM;
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- F14 - International Economics - - Trade - - - Empirical Studies of Trade
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