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Exchange Rate Misalignment and Economic Growth: Recent Evidence in Malaysia

  • n.a.m, Naseem
  • m.s, Hamizah
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    The present study aims at investigating the growth effects of real exchange rate misalignments in Malaysia over the period 1991:1-2009:4. The RER misalignment is built through the estimation of the NATREX equilibrium model. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration framework, the results indicate the presence of positive and significant relationship between the RER misalignment and economic growth. This finding obtained is consistent with the notion that the RER misalignment through the distortion in relative price has systematic influence on the pattern of economic development.

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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52447.

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    Date of creation: 2013
    Date of revision:
    Publication status: Published in Pertanikan Joournal of Social Sciences and Humanities special issue in economics.21(s)(2013): pp. 47-66
    Handle: RePEc:pra:mprapa:52447
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