Export, Economic Integration and Exchange Rate Volatility in Turkey and Malaysia
AbstractUsing annual data (1970-2004), this study re-examined the hypothesis that exchange rate volatility may dampen export demand in Malaysia and Turkey. In particular, this study attempts to investigate the impact of exchange rate volatility on exports after taking into consideration the presence of regional economic integration. In addition, the role of regional economic integration in promoting export is also of concern to this study. The empirical evidence demonstrates that despite the significant, minimal impact of membership to regional economic integration for both economies, regional integration remains an important and valid approach for future economic development for both economies. Meanwhile, similar to the findings of previous studies the impact of exchange rate volatility on exports is consistently negative. However, it is no longer significant in the case of Turkey.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 41519.
Date of creation: 2008
Date of revision:
Publication status: Published in JOURNAL OF INTERNATIONAL FINANCE AND ECONOMICS 9.5(2009): pp. 42-54
Export; Exchange rate volatility; Economic integration.;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- F31 - International Economics - - International Finance - - - Foreign Exchange
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