Testing Transmission Mechanisms on Economic Growth in Malaysia

Wai-Ching Poon

No 26-10, Monash Economics Working Papers from Monash University, Department of Economics

Abstract: This paper examines various transmission mechanism channels on economic growth in Malaysia over the quarterly period 1980:1-2004:4 using bounds testing approach. The bounds test reveals evidence of cointegration between the real GDP and the real exchange rate and share prices that address the exchange rate and asset price channels as the key transmission mechanisms in the conduct of the monetary policy stance. Nevertheless, the saving interest rate and credit channels are of insignificant.

Keywords: cointegration; transmission mechanism channels; monetary policy stance; bounds test; Malaysia (search for similar items in EconPapers)
JEL-codes: E52 (search for similar items in EconPapers)
Pages: 12 pages
Date: 2010-05
New Economics Papers: this item is included in nep-mac, nep-mon and nep-sea
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Citations: View citations in EconPapers (1)

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