Intertemporal approach to the current account: evidence from Malaysia and Indonesia
This article presents an application of the intertemporal approach to the current account positions of Indonesia and Malaysia over the past four decades. Comparing the results for these two emerging market economies, the model performed noticeable better for Malaysia. Meanwhile, Indonesia’s extern...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2013
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| Online Access: | http://journalarticle.ukm.my/6953/1/3622-8083-1-PB.pdf |
| _version_ | 1796930422069788672 |
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| author | Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald |
| author_facet | Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald |
| author_sort | Hamizun Ismail, |
| collection | UKM |
| description | This article presents an application of the intertemporal approach to the current account positions of Indonesia and
Malaysia over the past four decades. Comparing the results for these two emerging market economies, the model performed
noticeable better for Malaysia. Meanwhile, Indonesia’s external imbalances revealed the followings: deficits of the mid-1980s and 1990s prior to the 1997 crisis appeared to be an unsustainable path; surpluses during the post-crisis period deviated from the ‘optimal path’ significantly, implying that savings had reached a level that was beyond what would be required to support full ‘consumption-smoothing’; and capital movements appeared to be excessively volatile. |
| first_indexed | 2024-03-06T04:02:55Z |
| format | Article |
| id | ukm.eprints-6953 |
| institution | Universiti Kebangsaan Malaysia |
| language | English |
| last_indexed | 2024-03-06T04:02:55Z |
| publishDate | 2013 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| record_format | dspace |
| spelling | ukm.eprints-69532016-12-14T06:42:41Z http://journalarticle.ukm.my/6953/ Intertemporal approach to the current account: evidence from Malaysia and Indonesia Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald This article presents an application of the intertemporal approach to the current account positions of Indonesia and Malaysia over the past four decades. Comparing the results for these two emerging market economies, the model performed noticeable better for Malaysia. Meanwhile, Indonesia’s external imbalances revealed the followings: deficits of the mid-1980s and 1990s prior to the 1997 crisis appeared to be an unsustainable path; surpluses during the post-crisis period deviated from the ‘optimal path’ significantly, implying that savings had reached a level that was beyond what would be required to support full ‘consumption-smoothing’; and capital movements appeared to be excessively volatile. Penerbit Universiti Kebangsaan Malaysia 2013 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/6953/1/3622-8083-1-PB.pdf Hamizun Ismail, and Ahmad Zubaidi Baharumshah, and MacDonald, Ronald (2013) Intertemporal approach to the current account: evidence from Malaysia and Indonesia. Jurnal Pengurusan, 37 . pp. 3-13. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index |
| spellingShingle | Hamizun Ismail, Ahmad Zubaidi Baharumshah, MacDonald, Ronald Intertemporal approach to the current account: evidence from Malaysia and Indonesia |
| title | Intertemporal approach to the current account: evidence from
Malaysia and Indonesia |
| title_full | Intertemporal approach to the current account: evidence from
Malaysia and Indonesia |
| title_fullStr | Intertemporal approach to the current account: evidence from
Malaysia and Indonesia |
| title_full_unstemmed | Intertemporal approach to the current account: evidence from
Malaysia and Indonesia |
| title_short | Intertemporal approach to the current account: evidence from
Malaysia and Indonesia |
| title_sort | intertemporal approach to the current account evidence from malaysia and indonesia |
| url | http://journalarticle.ukm.my/6953/1/3622-8083-1-PB.pdf |
| work_keys_str_mv | AT hamizunismail intertemporalapproachtothecurrentaccountevidencefrommalaysiaandindonesia AT ahmadzubaidibaharumshah intertemporalapproachtothecurrentaccountevidencefrommalaysiaandindonesia AT macdonaldronald intertemporalapproachtothecurrentaccountevidencefrommalaysiaandindonesia |