Exchange-rate variability and industry trade flows between Malaysia and Japan

• المؤلفون الرئيسيون: Aftab, M., Syed, K.B.S., Ahmad, Rubi, Ismail, Izlin
• التنسيق: مقال
• منشور في: Taylor & Francis 2016
• الموضوعات: HF Commerce; HG Finance
• الوصول للمادة أونلاين: http://eprints.um.edu.my/18082/; http://dx.doi.org/10.1080/09638199.2015.1065901

This research investigates the exchange-rate risk sensitivity of Malaysian bilateral trade flows with its important trading partner, Japan. To this end, bounds testing approach to co-integration is applied using industry level data over the monthly period 2000–2013. Findings suggest that above the one-third of the total co-integrated export (43.86%) and import (34.54%), industries experiences the ringgit/yen variability effect in the short run. However, this effect sustains in relatively less number of export (14.03%) and import (32.73%) industries in the long run. It is interesting to note that exchange-rate risk boosts trade flows in the majority of these affected industries.