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Malaysia-Japan Commodity Trade and Asymmetric Effects of Exchange Rate Changes

Author

Listed:
  • BAHMANI-OSKOOEE, Mohsen
  • Aftab, Muhammad

Abstract

Asymmetry analysis is a new norm in applied research and the link between the trade balance and the exchange rate is no exception. In this paper we investigate the asymmetric response of the trade balance of each of the 60 industries that trade between Malaysia and Japan. We find short-run asymmetric effects of exchange rate changes on the trade balance of 50 industries (including the two largest industries), short-run adjustment asymmetry in 47 industry, and short-run impact asymmetry in 30 industries. However, short-run asymmetric effects lasted into the long run only in limited number of industries. Results were industry-specific at best.

Suggested Citation

  • BAHMANI-OSKOOEE, Mohsen & Aftab, Muhammad, 2017. "Malaysia-Japan Commodity Trade and Asymmetric Effects of Exchange Rate Changes," MPRA Paper 81213, University Library of Munich, Germany, revised 18 Aug 2017.
  • Handle: RePEc:pra:mprapa:81213
    as

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    File URL: https://mpra.ub.uni-muenchen.de/81213/1/MPRA_paper_81213.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Nonlinear ARDL; Asymmetry; 60 Industries; Malaysia; Japan;

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange

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