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Exchange-rate volatility and industry trade between the U.S. and Malaysia

Author Info

  • Bahmani-Oskooee, Mohsen
  • Harvey, Hanafiah

Abstract

Previous research that investigated the impact of exchange rate volatility on the trade flows of Malaysia concentrated only on the aggregate exports of Malaysia to the rest of the world. In this paper we first concentrate on the trade flows between Malaysia and the U.S. After showing that exchange rate volatility has neither short-run nor long-run effect on the trade flows between the two countries, we disaggregate the trade data by industry and consider the experience of 101 U.S. exporting industries to Malaysia and 17 U.S. importing industries from Malaysia. While exchange rate volatility seems to have significant short-run effects on the trade flows of most industries, short-run effects translate into the long run only in a limited number of small industries.

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File URL: http://www.sciencedirect.com/science/article/pii/S0275-5319(11)00003-1
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Article provided by Elsevier in its journal Research in International Business and Finance.

Volume (Year): 25 (2011)
Issue (Month): 2 (June)
Pages: 127-155

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Handle: RePEc:eee:riibaf:v:25:y:2011:i:2:p:127-155
Contact details of provider: Web page: http://www.elsevier.com/locate/ribaf

Keywords: Malaysia U.S. Commodity trade Exchange rate volatility;

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Cited by:

  1. Wang, Yi-Hsien & Lee, Jun-De, 2012. "Estimating the import demand function for China," Economic Modelling, Elsevier, vol. 29(6), pages 2591-2596.
  2. Chi, Junwook & Cheng, Seu Keow, 2016. "Do exchange rate volatility and income affect Australia’s maritime export flows to Asia?," Transport Policy, Elsevier, vol. 47(C), pages 13-21.

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