Advanced Search
MyIDEAS: Login to save this paper or follow this series

A Multivariate Cointegration Analysis Of The Role Of Exports To Main Trading Partners In The Malaysian Macroeconomics

Contents:

Author Info

  • Ubaidillah, Nur Zaimah
  • Ab. Rahim, Rossazana

Abstract

This paper investigates determinants of Malaysian export to the United States (US), Japan and Singapore using annual data from 1970 until 2010. Country specific determinants of trade include real gross domestic product, nominal effective exchange rate, inflation and inward foreign direct investment. The aim of this paper is to discern the dynamic causal chain among gross domestic product, foreign direct investment, real effective exchange rate and inflation in the context of Malaysian exports to the United States. The methodology employed applied Augmented Dickey Fuller test, Johansen and Juselius cointegration test and Vector Error Correction Model to capture the Granger-causal chain among the variables. The major findings ;(a) long-run equilibrium relationship(s) exists between Malaysian exports to its main trading partners and its macroeconomic variables, (b) Malaysia macroeconomic variables have significant influence on its exports to its main trading partners. Most specifically, real gross domestic product lead to expansion in exports performance.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://mpra.ub.uni-muenchen.de/39706/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39706.

as in new window
Length:
Date of creation: 2012
Date of revision:
Handle: RePEc:pra:mprapa:39706

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: Real gross domestic product; nominal effective exchange rate; inflation and inward foreign direct investment;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Christopher A. Sims, 1982. "Policy Analysis with Econometric Models," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 13(1), pages 107-164.
  2. Hakan Berument & Magda Kandil & Nergiz Dincer, 2007. "The Effects of Exchange Rate Fluctuations on Economic Activity in Turkey," Departmental Working Papers, Bilkent University, Department of Economics 0704, Bilkent University, Department of Economics.
  3. Riezman, Raymond G & Whiteman, Charles H & Summers, Peter M, 1996. "The Engine of Growth or Its Handmaiden? A Time-Series Assessment of Export-Led Growth," Empirical Economics, Springer, Springer, vol. 21(1), pages 77-110.
  4. Himarios, Daniel, 1989. "Do Devaluations Improve the Trade Balance? The Evidence Revisited," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 27(1), pages 143-68, January.
  5. Masih, Abul M. M. & Masih, Rumi, 1996. "Empirical tests to discern the dynamic causal chain in macroeconomic activity: new evidence from Thailand and Malaysia based on a multivariate cointegration/vector error-correction modeling approach," Journal of Policy Modeling, Elsevier, Elsevier, vol. 18(5), pages 531-560, October.
  6. Philip R. Lane & Gian Maria Milesi-Ferretti, 2001. "External Wealth, the Trade Balance, and the Real Exchange Rate," Trinity Economics Papers, Trinity College Dublin, Department of Economics 200121, Trinity College Dublin, Department of Economics.
  7. James Orr, 1991. "The trade balance effects of foreign direct investment in U.S. manufacturing," Quarterly Review, Federal Reserve Bank of New York, Federal Reserve Bank of New York, issue Sum, pages 63-76.
  8. Gylfason, Thorvaldur, 1999. "Exports, Inflation and Growth," World Development, Elsevier, Elsevier, vol. 27(6), pages 1031-1057, June.
  9. Abdulnasser Hatemi-J & Manuchehr Irandoust, 2000. "Export performance and economic growth causality: An empirical analysis," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 28(4), pages 412-426, December.
  10. Bacha, Obiyathulla I., 2004. "Lessons from East Asia's Crisis and Recovery," MPRA Paper 12759, University Library of Munich, Germany.
  11. Thanh, Nguyen Ngoc & Kalirajan, Kaliappa, 2006. "Can devaluation be effective in improving the balance of payments in Vietnam?," Journal of Policy Modeling, Elsevier, Elsevier, vol. 28(4), pages 467-476, May.
  12. Peter Wilamoski & Sarah Tinkler, 1999. "The trade balance effects of U.S. foreign direct investment in Mexico," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 27(1), pages 24-37, March.
  13. Lutkepohl, Helmut & Reimers, Hans-Eggert, 1992. "Impulse response analysis of cointegrated systems," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 16(1), pages 53-78, January.
  14. Liu, Xiaming & Wang, Chengang & Wei, Yingqi, 2001. "Causal links between foreign direct investment and trade in China," China Economic Review, Elsevier, Elsevier, vol. 12(2-3), pages 190-202.
  15. Fang, WenShwo & Lai, YiHao & Thompson, Henry, 2007. "Exchange rates, exchange risk, and Asian export revenue," International Review of Economics & Finance, Elsevier, Elsevier, vol. 16(2), pages 237-254.
  16. James R. Markusen, 1995. "The Boundaries of Multinational Enterprises and the Theory of International Trade," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 9(2), pages 169-189, Spring.
  17. Zhang, Kevin Honglin & Song, Shunfeng, 2001. "Promoting exports: the role of inward FDI in China," China Economic Review, Elsevier, Elsevier, vol. 11(4), pages 385-396.
  18. Mallick, Sushanta K., 2005. "Tight credit policy versus currency depreciation: Simulations from a trade and inflation model of India," Journal of Policy Modeling, Elsevier, Elsevier, vol. 27(5), pages 611-627, July.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:39706. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.