Exchange rate misalignment and economic growth: Recent evidence in Malaysia

N. A M Naseem, M. S. Hamizah

    Research output: Contribution to journalArticle

    3 Citations (Scopus)

    Abstract

    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.

    Original languageEnglish
    Pages (from-to)47-66
    Number of pages20
    JournalPertanika Journal of Social Science and Humanities
    Volume21
    Issue numberSeptember
    Publication statusPublished - 1 Sep 2013

    Fingerprint

    equilibrium model
    Malaysia
    economic growth
    evidence
    economics
    Economic Growth
    Economic Development
    Exchange Rates
    Testing
    Cointegration
    Exchange rates
    Misalignment
    Economic growth

    Keywords

    • ARDL
    • Misalignment
    • NATREX Model
    • Output Growth
    • Real Exchange Rate

    ASJC Scopus subject areas

    • Arts and Humanities(all)
    • Business, Management and Accounting(all)
    • Economics, Econometrics and Finance(all)
    • Social Sciences(all)

    Cite this

    Exchange rate misalignment and economic growth : Recent evidence in Malaysia. / Naseem, N. A M; Hamizah, M. S.

    In: Pertanika Journal of Social Science and Humanities, Vol. 21, No. September, 01.09.2013, p. 47-66.

    Research output: Contribution to journalArticle

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