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Do inpayments and outpayments respond to exchange rate changes asymmetrically: Evidence from Malaysia

Year: 2018

Type: article

Abstract: Since the pass-through of exchange rate changes on import and export prices are asymmetric, we expect a country’s inpayments (export earnings) and outpayments (cost of imports) to also react to exchange rate changes asymmetrically. We demonstrate this hypothesis by considering trade between Malaysia and each of her 11 largest trading partners. We find that while the short-run effects of exchange rate changes on Malaysia’s inpayments and outpayments are asymmetric with all partners, the long-run asymmetric effects are present in less than half of the partners. The results are partner specific.

Source: The International Trade Journal

DOI: 10.1080/08853908.2018.1425167

Authors: Mohsen Bahmani-Oskooee, Hanafiah Harvey

Institutions: University of Wisconsin–Milwaukee, Pennsylvania State University

Language: English

Topic: Global trade and economics

Subfield: General Economics, Econometrics and Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: green

OpenAlex ID: W2768302901

FWCI: 3.283

Cites: 27

Cited by: 13

Related to: 10