Please wait a minute...

Frontiers of Economics in China

Front. Econ. China    2019, Vol. 14 Issue (2) : 220-263     https://doi.org/10.3868/s060-008-019-0012-1
Orginal Article
Malaysia-Japan Commodity Trade and Asymmetric Effects of Exchange Rate Changes
Mohsen Bahmani-Oskooee1(), Muhammad Aftab2()
1. Center for Research on International Economics and Department of Economics, University of Wisconsin-Milwaukee, WI 53201, USA
2. Department of Management Sciences, COMSATS University Islamabad, Islamabad 45550, Pakistan
Download: PDF(2474 KB)  
Export: BibTeX | EndNote | Reference Manager | ProCite | RefWorks
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     
Issue Date: 17 July 2019
 Cite this article:   
Mohsen Bahmani-Oskooee,Muhammad Aftab. Malaysia-Japan Commodity Trade and Asymmetric Effects of Exchange Rate Changes[J]. Front. Econ. China, 2019, 14(2): 220-263.
 URL:  
http://journal.hep.com.cn/fec/EN/10.3868/s060-008-019-0012-1
http://journal.hep.com.cn/fec/EN/Y2019/V14/I2/220
Service
E-mail this article
E-mail Alert
RSS
Articles by authors
Mohsen Bahmani-Oskooee
Muhammad Aftab
Related articles from Frontiers Journals
[1] Xin Jin. A Bayesian Nonparametric Investigation of the Predictive Effect of Exchange Rates on Commodity Prices[J]. Front. Econ. China, 2020, 15(2): 179-210.
[2] Hiroya Akiba. Sustainability of Monetary-cum-Exchange Rate Policy in China[J]. Front. Econ. China, 2019, 14(4): 604-628.
[3] Farkhondeh Jabalameli, Ehsan Rasoulinezhad. Do BRICS Have Similar Disaggregated Trade Patterns with Different Regions?[J]. Front. Econ. China, 2019, 14(2): 302-328.
[4] Hongzhong Yan, Zhijian Qiao, Chen Xu. A Multi-Layer System and Its Features: Reconceptualizing the Monetary Regime of Late Qing and Modern China[J]. Front. Econ. China, 2018, 13(3): 436-457.
[5] Joseph E. Stiglitz. Rethinking Globalization in the Trump Era: US-China Relations[J]. Front. Econ. China, 2018, 13(2): 133-146.
[6] Zhiqi Chen, Marcel C. Voia. Short-Term and Long-Term Margins of International Trade: Evidence from the Canada-Chile Free Trade Agreement[J]. Front. Econ. China, 2018, 13(1): 93-115.
[7] Sven W. Arndt. Global Value Chains, Horizontal Intra-Industry Trade and the Heterogeneous Firm[J]. Front. Econ. China, 2018, 13(1): 68-82.
[8] John Douglas Wilson, Ilkay Yilmaz. Free-Trade Agreements in a Model of Trade, Migration and Politics[J]. Front. Econ. China, 2018, 13(1): 15-31.
[9] Alan V. Deardorff. Local Import Competition in a Lumpy Country[J]. Front. Econ. China, 2018, 13(1): 5-14.
[10] Dongsheng Di, Warren Coats, Yuxuan Zhao. Why Does the World Need a Reserve Asset with a Hard Anchor?[J]. Front. Econ. China, 2017, 12(4): 545-570.
[11] Zongye Huang. Structural Transformation under Trade Imbalances: The Case of the Postwar U.S.[J]. Front. Econ. China, 2017, 12(2): 228-267.
[12] Peter Hall. A Shift to Isolationism?[J]. Front. Econ. China, 2017, 12(2): 188-192.
[13] William Charles Sawyer, Kiril Tochkov, Wenting Yu. Regional and Sectoral Patterns and Determinants of Comparative Advantage in China[J]. Front. Econ. China, 2017, 12(1): 7-36.
[14] Dani Rodrik. Premature Deindustrialisation in the Developing World[J]. Front. Econ. China, 2017, 12(1): 1-6.
[15] Mengnan Zhu,Qian Zhao,Yuguang Wang. The Political Cause of the Movement of RMB Exchange Rate:A Research Based on the Spillover Effects of US Political Cycle[J]. Front. Econ. China, 2016, 11(4): 694-731.
Viewed
Full text


Abstract

Cited

  Shared   
  Discussed