UUM Electronic Theses and Dissertation
UUM ETD | Universiti Utara Malaysian Electronic Theses and Dissertation
FAQs | Feedback | Search Tips | Sitemap

An empirical investigation of ringgit Malaysia

Low, Shu Fang (2015) An empirical investigation of ringgit Malaysia. Masters thesis, Universiti Utara Malaysia.

[thumbnail of s818166_01.pdf]

Download (1MB) | Preview
[thumbnail of s818166_02.pdf]

Download (2MB) | Preview


This study investigates factors that influence the Malaysian exchange rate using quarterly
data from 1996Q1 to 2015Q2. The Johansen-Juselius cointegration test is used to assess
the long run equilibrium relationship between the Malaysian exchange rate, government
consumption, trade openness and net foreign assets. The long run VECM results indicate
that the government consumption, the trade openness and the net foreign assets are the
factors that significantly influence the Malaysian exchange rate. The government
consumption and the trade openness have negative relationships with the Malaysian
exchange rate, while the net foreign assets is found to have a positive influence on the
Malaysian exchange rate. This study provides insights for the policy maker to justify the
factors that influence the exchange rate and use the factors as a channel to influence the
Malaysian exchange rate. Results of this study enhance existing limited knowledge of the
exchange rate study using the BEER model in determining factors that influence the
Malaysian exchange rate, and the period of study covers a number of situation where the
Malaysian exchange rate had a significant drop in value.

Item Type: Thesis (Masters)
Supervisor : Nordin, Sabariah
Item ID: 5559
Uncontrolled Keywords: Exchange rate, BEER model, cointegration, variance decomposition
Subjects: H Social Sciences > HG Finance
Divisions: School of Economics, Finance & Banking
Date Deposited: 05 Apr 2016 04:54
Last Modified: 18 Mar 2021 08:33
Department: School of Economics Finance and Banking
Name: Nordin, Sabariah
URI: https://etd.uum.edu.my/id/eprint/5559

Actions (login required)

View Item
View Item