TY - JOUR
T1 - Do inpayments and outpayments respond to exchange rate changes asymmetrically
T2 - Evidence from Malaysia
AU - Bahmani-Oskooee, Mohsen
AU - Harvey, Hanafiah
N1 - Publisher Copyright:
© 2018, © 2018 Taylor & Francis.
PY - 2018/8/8
Y1 - 2018/8/8
N2 - 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.
AB - 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.
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U2 - 10.1080/08853908.2018.1425167
DO - 10.1080/08853908.2018.1425167
M3 - Article
AN - SCOPUS:85041192459
SN - 0885-3908
VL - 32
SP - 317
EP - 342
JO - International Trade Journal
JF - International Trade Journal
IS - 4
ER -