Bilateral Trade Balances: Evidence from Malaysia*

Tsen, Wong Hock

doi:10.1111/j.1467-8381.2011.02055.x

Cited by 11 publications

(6 citation statements)

References 23 publications

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“…They also did not find J-curve relation. Tsen (2011) examined the impacts of real exchange rates on the bilateral trade balances of Malaysia with the USA, Japan and Singapore. The results showed that depreciation of real exchange rates improves bilateral trade balances in the long run.…”

Section: Literature Reviewmentioning

confidence: 99%

Real Exchange Rate and Trade Balance Dynamics in Cote D’ivoire

Keho

2021

IJEFI

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This study examines the relationship between real exchange rate and trade balance in Cote d'Ivoire during the period from 1975 to 2017. The study employs the ARDL bounds testing approach to cointegration developed by Pesaran et al. (2001) in the examination of this nexus. Cointegration analysis and error correction modeling are used to determine the long run as well as short run dynamics, between real exchange rate and trade balance. The empirical results show negative and significant effects of domestic income on trade balance both in the short and long run. Further, a depreciation of real exchange rate causes an improvement in the trade balance in a significant way both in the short and long run. This suggests that exchange rate variations are effective for increasing balance of trade for Cote d'Ivoire.

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Section: Literature Reviewmentioning

confidence: 99%

Real Exchange Rate and Trade Balance Dynamics in Cote D’ivoire

Keho

2021

IJEFI

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“…An understanding of the study on the impact of exchange rates on trade balance helps governments to improve trade balances with other countries (Tsen, 2011). Financial crisis is imminent when a country experiences a persistent trade balance deficit.…”

Section: Understanding the Effect Of Exchange Rate On Trade Balancementioning

confidence: 99%

Impact of Real Exchange Rate on Trade Balance in Nigeria

Igue¹,

Ogunleye²

2014

African Development Review

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The study investigated whether the depreciation of exchange rate has a favourable impact on trade balance in Nigeria, based on the Marshall-Lerner (ML) condition. The Johansen method of cointegration and vector error correction methodology (VECM) was employed to investigate the existence of a long-run relationship between trade balance and the specified set of independent variables. The results confirm the satisfaction of the Marshall-Lerner condition in Nigeria, implying that depreciation of the exchange rate has a positive effect on trade balance in the long run. The study also established that a one per cent depreciation in the exchange rate would improve trade balance by 1.16 per cent. In the light of these findings, the study recommends a gradual depreciation of the exchange rate, which should be accompanied with export policy that encourages domestic production of non-oil products for exports.

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“…Dapatan kajian Bahmani-Oskooee dan Fariditavana (2015) telah disokong banyak pengkaji selepasnya seperti Baek dan Choi (2020), Bahmani-Oskooee dan Baek (2019), Bahmani-Oskooee dan Harvey (2017) dan Bahmani-Oskooee dan Saha (2017). Bagi mengkaji kewujudan keluk-J di Malaysia, beberapa kajian telah dijalankan antaranya Sahlan et al, (2008), Yusoff (2009), Tsen (2011), Chan dan Hooy (2012), Rahim dan Shahwahid (2014) dan Ali et al (2014). Namun demikian, kajian-kajian ini lebih menumpukan kepada perdagangan agregat dan kesan simetrik.…”

Section: Teori Dan Sorotan Kajian Lepasunclassified

Kesan Asimetrik Kadar Pertukaran Terhadap Imbangan Dagangan: Malaysia dan China

Zainuddin¹,

Zaidi²

2020

JEM

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Kemeruapan kadar pertukaran yang tinggi mewujudkan ketakpastian dan mempengaruhi ekonomi sesebuah negara. Ini dapat dilihat apabila kenaikan atau penyusutan nilai mata wang menjejaskan aliran perdagangan antara negara. Kertas ini mengkaji kewujudan fenomena keluk-J melalui kesan perubahan kadar pertukaran ke atas imbangan dagangan dua hala antara Malaysia dengan China bagi 17 industri perdagangan utama. Selain itu, kajian juga menilai kesan perubahan kadar pertukaran ke atas imbangan dagangan sama ada berlaku secara simetrik atau bukan simetrik (asimetrik). Kajian menggunakan data bulanan bermula Januari 2013 sehingga April 2018. Hasil kajian membuktikan kewujudan keluk-J bagi 5 daripada 17 industri perdagangan utama. Selain itu, hasil kajian juga menunjukkan bahawa penggunaan model ARDL tidak linear dapat membuktikan kesan asimetrik perubahan kadar pertukaran ke atas imbangan dagangan. Keputusan kajian memberi panduan kepada pembuat dasar mengenai kesan perubahan positif dan negatif kadar pertukaran terhadap eksport dan import industri utama negara ke China. Sekali gus, perkara ini dapat digunakan bagi mengesan dan mengatasi masalah inflasi diimport.

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Bilateral Trade Balances: Evidence from Malaysia*

Cited by 11 publications

References 23 publications

Real Exchange Rate and Trade Balance Dynamics in Cote D’ivoire

Real Exchange Rate and Trade Balance Dynamics in Cote D’ivoire

Impact of Real Exchange Rate on Trade Balance in Nigeria

Kesan Asimetrik Kadar Pertukaran Terhadap Imbangan Dagangan: Malaysia dan China

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