Exports, Imports and Economic Growth in Malaysia: EmpiricalEvidence Based on Multivariate Time Series

Baharumshah, Ahmad Zubaidi; Rashid, Salim

doi:10.1111/1467-8381.00092

Cited by 53 publications

(33 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…In addition, the large surplus recorded in Malaysia after 1997 can be attributed to the fixing of the ringgit to the US dollar, a policy that has to a certain extent promoted exports, but at the same time adversely affected imports. Several authors have shown that Malaysia's past performance has depended heavily on imports of capital and intermediate goods (see Baharumshah and Rashid, 1999). Any policy actions that adversely affect the imports of these goods will also have implications for the nation's economic progress.…”

Section: Conclusion and Policy Lessonsmentioning

confidence: 99%

On the sustainability of current account deficits: evidence from four ASEAN countries

Baharumshah

Lau

Fountas

2003

Journal of Asian Economics

Self Cite

View full text Add to dashboard Cite

This paper examines the sustainability of the current account imbalance for four ASEAN countries (Indonesia, Malaysia, the Philippines and Thailand) over the 1961-1999 period.To this end, we utilize the intertemporal budget constraint (IBC) model to explain the behavior of the current account in these countries. The analysis is based on various unit root and cointegration procedures including those allowing for a structural break to deal with the major shortcomings of previous studies. The empirical results indicate clearly that for all countries, except Malaysia, current account deficits were not on the long-run steady state in the pre-crisis era. This leads us to conclude that the current accounts of these countries were unsustainable and did not move towards external account equilibrium. Moreover, the persistent current account deficits might serve as a leading indicator of financial crises. In contrast, we find strong comovement between inflows and outflows in Indonesia, the Philippines and Thailand in the period including the post-crisis years, while Malaysia was on an unsustainable path. This is because macroeconomic performance of most of the ASEAN countries has changed dramatically since the onset of the Asian crisis in mid-1997. The evidence suggests that action to prevent large appreciations should have been taken prior to the 1997 crisis. JEL classification: F30, F32

show abstract

Section: Conclusion and Policy Lessonsmentioning

confidence: 99%

On the sustainability of current account deficits: evidence from four ASEAN countries

Baharumshah

Lau

Fountas

2003

Journal of Asian Economics

Self Cite

View full text Add to dashboard Cite

show abstract

“…Most recent studies use the VAR approach to identify this relationship, e.g. Alhahoj (2007), Baharumshah (1999), and Ahmet Ugur (2008).…”

Section: Economic Theory and Methodologymentioning

confidence: 99%

Impact of trade on economic growth in the Czech and Slovak Republics

Žídek¹,

Fitzová²

2015

E&S

View full text Add to dashboard Cite

ABSTRACT. This paper examines the relationship between trade and economic growth in the Czech and Slovak Republics. The situation after the Velvet revolution in 1989 is discussed at first. The change of the structure of the trade and the orientation of the trade in both republics are explained and illustrated on available data. The empirical part proved an analysis of the relationship between trade and GDP growth, using econometric analysis. Theory of cointegration, the vector error correction model and Granger causalities are employed. A long-term equilibrium among the investigated variables is identified in both countries. The empirical findings also indicate important role of exports in the economic growth in both republics. We conclude that economic growth in both of the countries can be identified as export-led.

show abstract

“…The k-max and trace statistics of the Johansen-Juselius tests reveal that the null hypothesis of no cointegration (r = 0) is easily rejected at the 5% significance level in the system of six variables, indicating that there is at least one stochastic trend shared by the six variables in the system for all of the studied countries. Notice that the 13 Recent studies by Haque et al (1999), Baharumshah and Rashid (1999), Johansson (1998), among others, shows that macroeconomic variables including these under investigation follow on I(1) process. 14 Since the procedure is now well established, we did not describe in detail here.…”

Section: Unit Root and Cointegration Testsmentioning

confidence: 95%

“…Papanek (1972) also showed the same positive effect of exports on savings for several of the Asian countries. Recent evidence tends to support the notion that those economies, which pursue an export-promotion policy, tend to achieve higher economic growth and this induce an increase in the saving rates (Baharumshah and Rashid 1999).…”

Section: Long-run Equilibrium Savings Equationmentioning

confidence: 99%

What happened to savings during the financial crisis—a dynamic panel analysis of Asian-5 countries

Thanoon

Baharumshah

2007

Econ Change

Self Cite

View full text Add to dashboard Cite

This article examines the determinants of saving rates in five Asian (Asian-5; Malaysia, Singapore, Thailand South Korea and the Philippines) countries over the 1970–2000 period. The focus is on the relationship between savings rates and foreign capital inflows before and in the financial crises. Major findings from the dynamic panel regressions are: (i) foreign savings depresses domestic savings ratio in the short as well as in the long run and the offset appears to be larger in the crisis period; (ii) real interest has a small negative effect on savings in the short and long run; (iii) the demographic factor explains a large portion of the long run trends but not the short-term fluctuations in savings rates; and (iv) high savings ratios in the countries studied is linked to the export sector. Copyright Springer Science+Business Media, LLC 2005Savings, Foreign capital, Economic growth, F41, F43, G23,

show abstract

Exports, Imports and Economic Growth in Malaysia: EmpiricalEvidence Based on Multivariate Time Series

Cited by 53 publications

References 33 publications

On the sustainability of current account deficits: evidence from four ASEAN countries

On the sustainability of current account deficits: evidence from four ASEAN countries

Impact of trade on economic growth in the Czech and Slovak Republics

What happened to savings during the financial crisis—a dynamic panel analysis of Asian-5 countries

Contact Info

Product

Resources

About