A Multivariate Cointegration Analysis Of The Role Of Exports To Main Trading Partners In The Malaysian Macroeconomics

Nur Ubaidillah () and Rossazana Ab. Rahim

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates determinants of Malaysian export to the United States (US), Japan and Singapore using annual data from 1970 until 2010. Country specific determinants of trade include real gross domestic product, nominal effective exchange rate, inflation and inward foreign direct investment. The aim of this paper is to discern the dynamic causal chain among gross domestic product, foreign direct investment, real effective exchange rate and inflation in the context of Malaysian exports to the United States. The methodology employed applied Augmented Dickey Fuller test, Johansen and Juselius cointegration test and Vector Error Correction Model to capture the Granger-causal chain among the variables. The major findings ;(a) long-run equilibrium relationship(s) exists between Malaysian exports to its main trading partners and its macroeconomic variables, (b) Malaysia macroeconomic variables have significant influence on its exports to its main trading partners. Most specifically, real gross domestic product lead to expansion in exports performance.

Keywords: Real gross domestic product; nominal effective exchange rate; inflation and inward foreign direct investment (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/39706/1/MPRA_paper_39706.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:39706

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().