The impact of exchange rate misalignment on portfolio inflows in Malaysia
The primary reason why exchange rate misalignment is of interest to economists lie with the notional premise that risks emanating from overvaluation may undermine the competitiveness of Malaysia as a destination for portfolio investment inflows. On the other hand, undervaluation should make her a m...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Inderscience Publishers
2010
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| Subjects: | |
| Online Access: | http://irep.iium.edu.my/3912/2/An_Empirical_Analysis_of_Exchange_Rate_Misalignment_%26_Portfolio_Inflows_in_Malaysia.pdf |
| _version_ | 1796875064905302016 |
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| author | Mohd Sidek, Noor Zahirah Yusoff, Mohammed |
| author_facet | Mohd Sidek, Noor Zahirah Yusoff, Mohammed |
| author_sort | Mohd Sidek, Noor Zahirah |
| collection | IIUM |
| description | The primary reason why exchange rate misalignment is of interest to economists lie with the notional premise that risks emanating from overvaluation may undermine the competitiveness of Malaysia as a destination for portfolio investment inflows. On the other hand, undervaluation should
make her a more attractive host. This study presents an attempt to examine the impact of exchange rate misalignment on portfolio inflows in Malaysia. Results show that events of misalignment have a negative impact on portfolio inflows.
Specifically, overvaluation has significant deterrent effect on portfolio inflows but the opposite could not be implied in the case of undervaluation. Therefore,
exchange rate policies should be geared to keep the exchange rate in line with the economic fundamentals so as to avoid prolonged overvaluation. |
| first_indexed | 2024-03-05T22:33:25Z |
| format | Article |
| id | oai:generic.eprints.org:3912 |
| institution | International Islamic University Malaysia |
| language | English |
| last_indexed | 2024-03-05T22:33:25Z |
| publishDate | 2010 |
| publisher | Inderscience Publishers |
| record_format | dspace |
| spelling | oai:generic.eprints.org:39122012-02-14T07:29:31Z http://irep.iium.edu.my/3912/ The impact of exchange rate misalignment on portfolio inflows in Malaysia Mohd Sidek, Noor Zahirah Yusoff, Mohammed HG3810 Foreign exchange The primary reason why exchange rate misalignment is of interest to economists lie with the notional premise that risks emanating from overvaluation may undermine the competitiveness of Malaysia as a destination for portfolio investment inflows. On the other hand, undervaluation should make her a more attractive host. This study presents an attempt to examine the impact of exchange rate misalignment on portfolio inflows in Malaysia. Results show that events of misalignment have a negative impact on portfolio inflows. Specifically, overvaluation has significant deterrent effect on portfolio inflows but the opposite could not be implied in the case of undervaluation. Therefore, exchange rate policies should be geared to keep the exchange rate in line with the economic fundamentals so as to avoid prolonged overvaluation. Inderscience Publishers 2010 Article PeerReviewed application/pdf en cc_by_nc http://irep.iium.edu.my/3912/2/An_Empirical_Analysis_of_Exchange_Rate_Misalignment_%26_Portfolio_Inflows_in_Malaysia.pdf Mohd Sidek, Noor Zahirah and Yusoff, Mohammed (2010) The impact of exchange rate misalignment on portfolio inflows in Malaysia. American Journal of Finance and Accounting, 2 (1). pp. 33-55. ISSN 1752-7775 (O), 1752-7767 (P) http://www.inderscience.com/browse/index.php?journalCODE=ajfa http://www.inderscience.com/storage/f119358742110126.pdf |
| spellingShingle | HG3810 Foreign exchange Mohd Sidek, Noor Zahirah Yusoff, Mohammed The impact of exchange rate misalignment on portfolio inflows in Malaysia |
| title | The impact of exchange rate misalignment on portfolio inflows in Malaysia |
| title_full | The impact of exchange rate misalignment on portfolio inflows in Malaysia |
| title_fullStr | The impact of exchange rate misalignment on portfolio inflows in Malaysia |
| title_full_unstemmed | The impact of exchange rate misalignment on portfolio inflows in Malaysia |
| title_short | The impact of exchange rate misalignment on portfolio inflows in Malaysia |
| title_sort | impact of exchange rate misalignment on portfolio inflows in malaysia |
| topic | HG3810 Foreign exchange |
| url | http://irep.iium.edu.my/3912/2/An_Empirical_Analysis_of_Exchange_Rate_Misalignment_%26_Portfolio_Inflows_in_Malaysia.pdf |
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