1. Exchange-rate variability and industry trade flows between Malaysia and Japan.
- Author
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Aftab, Muhammad, Syed, Karim Bux Shah, Ahmad, Rubi, and Ismail, Izlin
- Subjects
FOREIGN exchange rate risk ,INTERNATIONAL trade ,INTERNATIONAL economic relations ,COINTEGRATION - Abstract
This research investigates the exchange-rate risk sensitivity of Malaysian bilateral trade flows with its important trading partner, Japan. To this end, bounds testing approach to co-integration is applied using industry level data over the monthly period 2000–2013. Findings suggest that above the one-third of the total co-integrated export (43.86%) and import (34.54%), industries experiences the ringgit/yen variability effect in the short run. However, this effect sustains in relatively less number of export (14.03%) and import (32.73%) industries in the long run. It is interesting to note that exchange-rate risk boosts trade flows in the majority of these affected industries. [ABSTRACT FROM PUBLISHER]
- Published
- 2016
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