Do inpayments and outpayments respond to exchange rate changes asymmetrically

Evidence from Malaysia

Mohsen Bahmani-Oskooee, Hanafiah Harvey

Research output: Contribution to journalArticle

2 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)317-342
Number of pages26
JournalInternational Trade Journal
Volume32
Issue number4
DOIs
StatePublished - Aug 8 2018

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Malaysia
Exchange rates
Import prices
Costs
Export prices
Import
Asymmetric effects
Pass-through
Short-run

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Economics, Econometrics and Finance(all)

Cite this

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Do inpayments and outpayments respond to exchange rate changes asymmetrically : Evidence from Malaysia. / Bahmani-Oskooee, Mohsen; Harvey, Hanafiah.

In: International Trade Journal, Vol. 32, No. 4, 08.08.2018, p. 317-342.

Research output: Contribution to journalArticle

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