Trade balance and j _curve phenomenon in Malaysia

This paper examines the effects of real exchange rate changes on the trade balance of Malaysia and her trading partners (Japan, Singapore, United Kingdom, and United State of America). The response of the trade balance through time then form the famous J Shape. Using yearly data from 1970-2003 and c...

Full description

Bibliographic Details
Main Authors: Rizaudin Sahlan (Author), Hussein Abdullh (Author), Mohd Ridhuan Boss Abdullah (Author)
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia, 2008.
Online Access:Get fulltext
Description
Summary:This paper examines the effects of real exchange rate changes on the trade balance of Malaysia and her trading partners (Japan, Singapore, United Kingdom, and United State of America). The response of the trade balance through time then form the famous J Shape. Using yearly data from 1970-2003 and co integration analysis, we found that there is avidence of J-curve at least in the cases of USA and Japan.