The study of exchange rates behavior in Malaysia by using NATREX model

The study of exchange rates behavior in Malaysia by using NATREX model. Journal of Fundamental and Applied Sciences, 9 (3s). pp. 697-715. ISSN 1112-9867 (2017)


This paper aims to estimate equilibrium exchange rates and identify the determinants of macroeconomics fundamentals affecting exchange rates in Malaysia. By using Natural Real
Exchange Rates (NATREX) model, this study adopts the Autoregressive Distributed (ARDL) model to examine the long run relationships (or cointegration) among variables and the dynamic effect within variables in the short run for the period 1970 to 2012.
suggest that the terms of trade, dependency ratio of the young, and play an important role in influencing the exchange rates movement in also reveals that the misalignment of exchange rates is quite small and stable in Malaysia during 1983 to 2012, except in 1995.

Item Type: Article
Keywords: Natural real exchange rates, Exchange rates misalignment, Bound testing, ARDL
Taxonomy: By Subject > Business & Management > Economics
By Subject > Business & Management > Finance
Local Content Hub: Subjects > Business & Management
Depositing User: Mohd Fadhli Samsudin
Date Deposited: 15 Mar 2022 23:32
Last Modified: 15 Mar 2022 23:32
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