Abu Bakar, Nor'Aznin (2000) Time series estimation of Malaysia's export and import demand : a dynamic old method. Analisis, 7 (1&2). pp. 61-77. ISSN 0127-8983

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Abstract

This paper examines the long-run relationship of export and import demand of Malaysia using time series analysis techniques that address the problem of non-stationarity. Specifically, the dynamic OLS method and the Johansen Maximum Likelihood are employed to estimate the price and income elasticities. The price and income elasticities for export demand are -0.35 and 0.20 respectively. While the price and income elasticities for import demand are -1.24 and 0.90 respectively. Obviously, the Marshall-Lerner conditions are easily met as the sum of the price elasticities of export and import demand is greater than one, suggesting that appreciations (depreciations) in exchange rates can worsen (improve) the current account in a period of one year.

Item Type:	Article
Uncontrolled Keywords:	international trade, exports, imports, time series analysis
Subjects:	H Social Sciences > HF Commerce
Divisions:	College of Arts and Sciences
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	05 Jul 2010 03:57
Last Modified:	05 Jul 2010 03:57
URI:	https://repo.uum.edu.my/id/eprint/141

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