Title of article
Exchange Rate Misalignment and Economic Growth: Recent Evidence in Malaysia
Author/Authors
Naseem, N. A. M. Universiti Putra Malaysia - Faculty of Economics and Management - Department of Economics, Malaysia , Naseem, N. A. M. Universiti Kebangsaan Malaysia - School of Economics, Faculty of Economics and Management, Malaysia , Hamizah, M. S. Universiti Kebangsaan Malaysia - School of Economics, Faculty of Economics and Management, Malaysia , Hamizah, M. S. university of malaya - Faculty of Economics and Administration, Malaysia
From page
47
To page
65
Abstract
The present study aims at investigating the growth effects of real exchange rate misalignments in Malaysia over the period 1991:1-2009:4. The RER misalignment is built through the estimation of the NATREX equilibrium model. Using the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration framework, the results indicate the presence of positive and significant relationship between the RER misalignment and economic growth. This finding obtained is consistent with the notion that the RER misalignment through the distortion in relative price has systematic influence on the pattern of economic development.
Keywords
Real Exchange Rate , Misalignment , NATREX Model , Output Growth , ARDL
Journal title
Pertanika Journal of Social Sciences and Humanities (JSSH)
Journal title
Pertanika Journal of Social Sciences and Humanities (JSSH)
Record number
2651676
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