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Malaysia and RCEP Countries: Gain or Pain?

Author

Listed:
  • Dayang Affizzah Awang Marikan

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia.)

  • Mohammad Affendy Arip

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia.)

  • Jaber Khan

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia.)

  • Hazlin Hamzah

    (Faculty of Economics and Business, Universiti Malaysia Sarawak, Malaysia.)

Abstract

The study analyses the determinants of Malaysia?s export to RCEP (Regional Comprehensive Economic Partnership) using panel data of 15 countries for the period 1997-2018. The analysis shows that the Malaysia?s GDP and trade openness will increases as export increases. On the other hand, exchange rates have inverse relationship with export. Remoteness, however found to be insignificant to affect the export. Thus by joining RCEP, Malaysia can look forward to see the growth in its economies as well as attracting more foreign investors into the countries as the economies expanded and become more open. The economic benefit gain from the inverse relationship between export and exchange rate will further placed Malaysia to become more competitive in international markets. In the long run, the lower exchange rate will reduce imports and raise exports to compensate for the increase cost of exports.

Suggested Citation

  • Dayang Affizzah Awang Marikan & Mohammad Affendy Arip & Jaber Khan & Hazlin Hamzah, 2020. "Malaysia and RCEP Countries: Gain or Pain?," Journal of Asian Scientific Research, Asian Economic and Social Society, vol. 10(3), pages 213-221, September.
    • Handle: RePEc:asi:joasrj:2020:p:213-221
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    References listed on IDEAS

    as
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    4. Okabe, Misa & Urata, Shujiro, 2014. "The impact of AFTA on intra-AFTA trade," Journal of Asian Economics, Elsevier, vol. 35(C), pages 12-31.
    5. Hadri, Kaddour, 1999. "Estimation of a Doubly Heteroscedastic Stochastic Frontier Cost Function," Journal of Business & Economic Statistics, American Statistical Association, vol. 17(3), pages 359-363, July.
    6. Tianshu Liu, 2007. "The Impact of Regional Trade Agreements on Trade: The Case of China," Chinese Economy, Taylor & Francis Journals, vol. 40(2), pages 70-96, April.
    7. Peter Pedroni, 2001. "Purchasing Power Parity Tests In Cointegrated Panels," The Review of Economics and Statistics, MIT Press, vol. 83(4), pages 727-731, November.
    8. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
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    More about this item

    Keywords

    Export; Free trade agreement; Gravity model.;

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