IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v20y2013i3p252-269.html

S-curve at the industry level: evidence from Malaysia's bilateral trade with its major trading partners in East Asia

Author

Listed:
  • Abdorreza Soleymani
  • Soo Y. Chua

Abstract

This study investigates the relationship between the terms of trade and trade balance for Malaysia with its three major trading partners namely China, Japan and Singapore using the S-curve. The lead and lag cross-correlations between the terms of trade and the trade balance resemble a horizontal S-curve. We evaluate the S-curve in 70 industries over the period 1974-2009. Initial results with aggregated bilateral trade data did not show any S-curve pattern. However, by using the industry level data, we found the existence of the S-curve pattern in some of these industries. Most of these are small and intermediate goods industries. Finally, our findings support that durables are more sensitive to real exchange rate changes than non-durables only in the case of China.

Suggested Citation

  • Abdorreza Soleymani & Soo Y. Chua, 2013. "S-curve at the industry level: evidence from Malaysia's bilateral trade with its major trading partners in East Asia," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 20(3), pages 252-269, September.
    • Handle: RePEc:taf:raaexx:v:20:y:2013:i:3:p:252-269
    DOI: 10.1080/16081625.2013.791032
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2013.791032
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2013.791032?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Masahisa Fujita & Nobuaki Hamaguchi, 2012. "Japan and economic integration in East Asia: post-disaster scenario," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 48(2), pages 485-500, April.
    2. Haddad, Mona, 2007. "Trade integration in East Asia : the Role of China and production networks," Policy Research Working Paper Series 4160, The World Bank.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abdorreza Soleymani & Soo Y. Chua & Hamat Che Abdul Fatah, 2016. "The Effects of Currency Depreciation on Industry Trade Flows between Malaysia and China," The International Trade Journal, Taylor & Francis Journals, vol. 30(3), pages 181-206, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Athukorala, Prema-chandra & Yamashita, Nobuaki, 2006. "Production fragmentation and trade integration: East Asia in a global context," The North American Journal of Economics and Finance, Elsevier, vol. 17(3), pages 233-256, December.
    2. Masafumi Fujita & Hamaguchi Nobuaki & Junko Sagara & Bianca Adam, 2012. "Economic Impacts," World Bank Publications - Reports 16151, The World Bank Group.
    3. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2011. "Who produces for whom in the world economy?," Canadian Journal of Economics, Canadian Economics Association, vol. 44(4), pages 1403-1437, November.
    4. Guillaume Daudin & Christine Rifflart & Danielle Schweisguth, 2008. "Value-Added Trade and Regionalization. GTAP Eleventh Annual Conference 'Future of Global Economy', Helsinki, Finland," Sciences Po Economics Publications (main) hal-01065996, HAL.
    5. Evert Meijers & Martijn Burger & Masahisa Fujita & Nobuaki Hamaguchi, 2016. "Supply chain internationalization in East Asia: Inclusiveness and risks," Papers in Regional Science, Wiley Blackwell, vol. 95(1), pages 81-100, March.
    6. Gilles Duranton & Tomoya Mori, 2025. "How Masa Fujita shaped the present of spatial economics and how he will inspire its future," The Japanese Economic Review, Springer, vol. 76(4), pages 691-716, October.
    7. Choong, Pai Wei & khalifah, noor & Mohd Nor, Abu Hassan Shaari & Ismail, Mohd Adib, 2018. "Free Trade Agreements and Production Sharing in Malaysian Manufacturing Industries," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(3), pages 91-106.
    8. Soumyananda Dinda, 2014. "China integrates Asia with the world: an empirical study," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing Limited, vol. 7(2), pages 70-89, May.
    9. Philipp Harms & Jaewon Jung & Oliver Lorz, 2021. "Offshoring and sequential production chains: A general equilibrium analysis," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 54(2), pages 623-647, May.
    10. Hu, Cui & Tan, Yong, 2016. "Export spillovers and export performance in China," China Economic Review, Elsevier, vol. 41(C), pages 75-89.
    11. repec:idn:journl:v:1:y:2019:i:sp5:p:1-20 is not listed on IDEAS
    12. repec:spo:wpmain:info:hdl:2441/9541 is not listed on IDEAS
    13. Nelgen, Signe & Anderson, Kym, 2011. "Projecting agricultural distortions for a 2030 GTAP database," Conference papers 332094, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Miria Pigato, 2009. "Strengthening China's and India's Trade and Investment Ties to the Middle East and North Africa," World Bank Publications - Books, The World Bank Group, number 2626, April.
    15. Ian Coxhead & Sisira Jayasuriya, 2010. "China, India and the Commodity Boom: Economic and Environmental Implications for Low‐income Countries," The World Economy, Wiley Blackwell, vol. 33(4), pages 525-551, April.
    16. repec:spo:wpecon:info:hdl:2441/9541 is not listed on IDEAS
    17. Koji Nishikimi & Ikuo Kuroiwa, 2011. "Analytical Framework for East Asian Integration (1): Industrial Agglomeration and Concentrated Dispersion," Chapters, in: Masahisa Fujita & Ikuo Kuroiwa & Satoru Kumagai (ed.), The Economics of East Asian Integration, chapter 2, Edward Elgar Publishing.
    18. Archanun Kohpaiboon, 2011. "Trade policy and international production networks: A company-level case study of the Thai hard disk drive industry," STUDIES IN TRADE AND INVESTMENT, in: Mia Mikic & Mochamad Pasha (ed.), Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia, chapter 7, pages 153-177, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).
    19. Yuqing Xing, 2008. "China's Exports in ICT and its Impact on Asian Countries," WIDER Working Paper Series RP2008-39, World Institute for Development Economic Research (UNU-WIDER).
    20. Rafaelita M. Aldaba & Josef T. Yap, 2009. "Investment and Capital Flows : Implications of the ASEAN Economic Community," Macroeconomics Working Papers 22949, East Asian Bureau of Economic Research.
    21. Mustafizur Rahman & Hosna Jahan, 2015. "Second-generation Cooperation Agenda," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 16(1), pages 1-26, March.
    22. World Bank, 2008. "Middle East and North Africa Economic Developments and Prospects, 2008 : Regional Integration for Global Competitiveness," World Bank Publications - Reports 12949, The World Bank Group.
    23. Dinda, Soumyananda, 2015. "Impact of China’s slowdown on the Global Economy: Modified GVAR Approach," MPRA Paper 72472, University Library of Munich, Germany, revised 11 Sep 2015.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:20:y:2013:i:3:p:252-269. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.