The macroeconomic fundamentals of the real exchange rate in Malaysia: Some empirical evidence
The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointe...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2021
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| Series: | Jurnal Ekonomi Malaysia
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| Subjects: | |
| Online Access: | View Fulltext in Publisher View in Scopus |
| LEADER | 01951nam a2200241Ia 4500 | ||
|---|---|---|---|
| 001 | 10.17576-JEM-2021-5502-7 | ||
| 008 | 220121s2021 CNT 000 0 und d | ||
| 020 | |a 01261962 (ISSN) | ||
| 245 | 1 | 0 | |a The macroeconomic fundamentals of the real exchange rate in Malaysia: Some empirical evidence |
| 260 | 0 | |b Penerbit Universiti Kebangsaan Malaysia |c 2021 | |
| 490 | 1 | |a Jurnal Ekonomi Malaysia | |
| 650 | 0 | 4 | |a Autoregressive distributed lag (ARDL) |
| 650 | 0 | 4 | |a Bound testing |
| 650 | 0 | 4 | |a Equilibrium exchange rates (EER) |
| 650 | 0 | 4 | |a Exchange rates misalignment |
| 856 | |z View Fulltext in Publisher |u https://doi.org/10.17576/JEM-2021-5502-7 | ||
| 856 | |z View in Scopus |u https://www.scopus.com/inward/record.uri?eid=2-s2.0-85117826946&doi=10.17576%2fJEM-2021-5502-7&partnerID=40&md5=fcbe3d3acd2744c152f4187defa96017 | ||
| 520 | 3 | |a The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointegration among variables and the dynamic effect within variables in the short-run over the sample period. The results suggest that inflation rate and national income growth rate play important roles in influencing exchange rate movement. The results also reveal that the misalignment of exchange rates is quite small and stable during 1988 to 2019, except for 2015 which was attributed to the weaker growth in China. Consecutively, this study suggests that the parity condition is only important in the long-run in explaining exchange rates behaviour for the sample country. © 2021 Penerbit Universiti Kebangsaan Malaysia. All rights reserved. | |
| 700 | 1 | 0 | |a Ghani, R.A. |e author |
| 700 | 1 | 0 | |a Habibullah, M.S. |e author |
| 700 | 1 | 0 | |a Johari, M.S. |e author |
| 700 | 1 | 0 | |a Manaf, S.M.A. |e author |
| 773 | |t Jurnal Ekonomi Malaysia | ||