External Shocks in Emerging Markets: The Case of Malaysia
Global integration has resulted in numerous benefits, including increased trade, investment, and economic growth. Meanwhile, integration can make countries more vulnerable to external shocks, such as commodity price fluctuations, or economic and financial crises. These have the potential to signific...
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| Format: | Article |
| Language: | English English |
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Penerbit UMS
2023
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| Online Access: | https://eprints.ums.edu.my/id/eprint/37440/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/37440/2/FULL%20TEXT.pdf |
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| author | Shariff Umar Shariff Abd. Kadir Wong, Hock Tsen |
| author_facet | Shariff Umar Shariff Abd. Kadir Wong, Hock Tsen |
| author_sort | Shariff Umar Shariff Abd. Kadir |
| collection | UMS |
| description | Global integration has resulted in numerous benefits, including increased trade, investment, and economic growth. Meanwhile, integration can make countries more vulnerable to external shocks, such as commodity price fluctuations, or economic and financial crises. These have the potential to significantly affect economic activity. Thus, the present paper investigates the impact of external shock in Malaysia using the open economy SVAR model. The findings discovered that external shocks cause inflationary pressures in the domestic economy. Domestic monetary policy seems to be tightening to reduce inflationary pressures. Shocks in oil prices and foreign monetary policy cause a decrease in the government debt ratio, demonstrating that both external variables have a significant impact on the domestic debt ratio. External shocks, particularly oil prices and foreign income shocks stimulate output and improve the primary deficit. The findings indicate that external shocks have a significant impact on the Malaysian economy. |
| first_indexed | 2024-03-06T03:25:40Z |
| format | Article |
| id | ums.eprints-37440 |
| institution | Universiti Malaysia Sabah |
| language | English English |
| last_indexed | 2024-03-06T03:25:40Z |
| publishDate | 2023 |
| publisher | Penerbit UMS |
| record_format | dspace |
| spelling | ums.eprints-374402023-10-02T07:08:38Z https://eprints.ums.edu.my/id/eprint/37440/ External Shocks in Emerging Markets: The Case of Malaysia Shariff Umar Shariff Abd. Kadir Wong, Hock Tsen HB1-3840 Economic theory. Demography HC94-1085 By region or country Global integration has resulted in numerous benefits, including increased trade, investment, and economic growth. Meanwhile, integration can make countries more vulnerable to external shocks, such as commodity price fluctuations, or economic and financial crises. These have the potential to significantly affect economic activity. Thus, the present paper investigates the impact of external shock in Malaysia using the open economy SVAR model. The findings discovered that external shocks cause inflationary pressures in the domestic economy. Domestic monetary policy seems to be tightening to reduce inflationary pressures. Shocks in oil prices and foreign monetary policy cause a decrease in the government debt ratio, demonstrating that both external variables have a significant impact on the domestic debt ratio. External shocks, particularly oil prices and foreign income shocks stimulate output and improve the primary deficit. The findings indicate that external shocks have a significant impact on the Malaysian economy. Penerbit UMS 2023 Article NonPeerReviewed text en https://eprints.ums.edu.my/id/eprint/37440/1/ABSTRACT.pdf text en https://eprints.ums.edu.my/id/eprint/37440/2/FULL%20TEXT.pdf Shariff Umar Shariff Abd. Kadir and Wong, Hock Tsen (2023) External Shocks in Emerging Markets: The Case of Malaysia. Labuan E-Journal of Muamalat and Society (LJMS), 17. pp. 11-23. ISSN 1985-482X |
| spellingShingle | HB1-3840 Economic theory. Demography HC94-1085 By region or country Shariff Umar Shariff Abd. Kadir Wong, Hock Tsen External Shocks in Emerging Markets: The Case of Malaysia |
| title | External Shocks in Emerging Markets: The Case of Malaysia |
| title_full | External Shocks in Emerging Markets: The Case of Malaysia |
| title_fullStr | External Shocks in Emerging Markets: The Case of Malaysia |
| title_full_unstemmed | External Shocks in Emerging Markets: The Case of Malaysia |
| title_short | External Shocks in Emerging Markets: The Case of Malaysia |
| title_sort | external shocks in emerging markets the case of malaysia |
| topic | HB1-3840 Economic theory. Demography HC94-1085 By region or country |
| url | https://eprints.ums.edu.my/id/eprint/37440/1/ABSTRACT.pdf https://eprints.ums.edu.my/id/eprint/37440/2/FULL%20TEXT.pdf |
| work_keys_str_mv | AT shariffumarshariffabdkadir externalshocksinemergingmarketsthecaseofmalaysia AT wonghocktsen externalshocksinemergingmarketsthecaseofmalaysia |