Malaysia-Japan Commodity Trade and Asymmetric Effects of Exchange Rate Changes

Mohsen Bahmani-Oskooee and Muhammad Aftab ()
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Muhammad Aftab: Department of Management Sciences, COMSATS University Islamabad, Islamabad 45550, Pakistan

Frontiers of Economics in China-Selected Publications from Chinese Universities, 2019, vol. 14, issue 2, 220-263

Abstract: Asymmetry analysis is a new norm in applied research and the link between the trade balance and the exchange rate is no exception. In this paper we investigate the asymmetric response of the trade balance of each of the 60 industries that trade between Malaysia and Japan. We find short-run asymmetric effects of exchange rate changes on the trade balance of 50 industries (including the two largest industries), short-run adjustment asymmetry in 47 industries, and short-run impact asymmetry in 30 industries. However, short-run asymmetric effects lasted into the long run only in limited number of industries. Results are industry-specific at best.

Keywords: Auto Regressive Distributed Lag (ARDL); asymmetry; 60 industries; Malaysia; Japan; trade; exchange rate (search for similar items in EconPapers)
JEL-codes: F14 F31 F41 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (4)

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http://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0012-1 (application/pdf)

Related works:
Working Paper: Malaysia-Japan Commodity Trade and Asymmetric Effects of Exchange Rate Changes (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:fec:journl:v:14:y:2019:i:2:p:220-263

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