Alternative Approach to Determination of Malaysian Economic Behaviour
This study documents significant findings on the determination of Malaysian economic behaviour in relation to its close trading partners. The data series for this study were from Malaysia, the USA, and China, over a 25-year period. The test procedure incorporated a fully specified Auto Regressive Di...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Universiti Utara Malaysia Press
2016
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| Online Access: | https://repo.uum.edu.my/id/eprint/24966/1/IJBF%2012%202%202016%2077%2097.pdf |
| _version_ | 1825805198506852352 |
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| author | Zarei, Alireza Lee, Ruenn Huah Sia, Jye Ying Ho, Chee Kit |
| author_facet | Zarei, Alireza Lee, Ruenn Huah Sia, Jye Ying Ho, Chee Kit |
| author_sort | Zarei, Alireza |
| collection | UUM |
| description | This study documents significant findings on the determination of Malaysian economic behaviour in relation to its close trading partners. The data series for this study were from Malaysia, the USA, and China, over a 25-year period. The test procedure incorporated a fully specified Auto Regressive Distributed Lag (ARDL) model with optimum lags being identified from high R-Squared value and the absence of serial correlation. The gross domestic product and industrial production indices were accounted for to re-examine a macroeconomic modelling approach to determination of the Malaysian economy. The results affirmed evidence of significant explanatory role of American and Chinese lagged GDP and IPI in determining the Malaysian economy. Our test results further identified a significant long-run interdependence between Malaysian economy and its major trading partners. In our view, these findings, given the appropriate econometric methodology, suggested significant policy implications concerning the timing and accuracy of risk management practices in preventing economic crisis to occur in Malaysia. |
| first_indexed | 2024-07-04T06:28:23Z |
| format | Article |
| id | uum-24966 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:28:23Z |
| publishDate | 2016 |
| publisher | Universiti Utara Malaysia Press |
| record_format | eprints |
| spelling | uum-249662018-10-17T03:04:25Z https://repo.uum.edu.my/id/eprint/24966/ Alternative Approach to Determination of Malaysian Economic Behaviour Zarei, Alireza Lee, Ruenn Huah Sia, Jye Ying Ho, Chee Kit HC Economic History and Conditions This study documents significant findings on the determination of Malaysian economic behaviour in relation to its close trading partners. The data series for this study were from Malaysia, the USA, and China, over a 25-year period. The test procedure incorporated a fully specified Auto Regressive Distributed Lag (ARDL) model with optimum lags being identified from high R-Squared value and the absence of serial correlation. The gross domestic product and industrial production indices were accounted for to re-examine a macroeconomic modelling approach to determination of the Malaysian economy. The results affirmed evidence of significant explanatory role of American and Chinese lagged GDP and IPI in determining the Malaysian economy. Our test results further identified a significant long-run interdependence between Malaysian economy and its major trading partners. In our view, these findings, given the appropriate econometric methodology, suggested significant policy implications concerning the timing and accuracy of risk management practices in preventing economic crisis to occur in Malaysia. Universiti Utara Malaysia Press 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/24966/1/IJBF%2012%202%202016%2077%2097.pdf Zarei, Alireza and Lee, Ruenn Huah and Sia, Jye Ying and Ho, Chee Kit (2016) Alternative Approach to Determination of Malaysian Economic Behaviour. International Journal of Banking and Finance (IJBF), 12 (2). pp. 77-94. ISSN 1675-7227 http://ijbf.uum.edu.my/index.php/previous-issues/153-the-international-journal-of-banking-and-finance-ijbf-volume-12-no-2-2016 |
| spellingShingle | HC Economic History and Conditions Zarei, Alireza Lee, Ruenn Huah Sia, Jye Ying Ho, Chee Kit Alternative Approach to Determination of Malaysian Economic Behaviour |
| title | Alternative Approach to Determination of Malaysian Economic Behaviour |
| title_full | Alternative Approach to Determination of Malaysian Economic Behaviour |
| title_fullStr | Alternative Approach to Determination of Malaysian Economic Behaviour |
| title_full_unstemmed | Alternative Approach to Determination of Malaysian Economic Behaviour |
| title_short | Alternative Approach to Determination of Malaysian Economic Behaviour |
| title_sort | alternative approach to determination of malaysian economic behaviour |
| topic | HC Economic History and Conditions |
| url | https://repo.uum.edu.my/id/eprint/24966/1/IJBF%2012%202%202016%2077%2097.pdf |
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