Export, Economic Integration and Exchange Rate Volatility in Turkey and Malaysia

masron, Tajul arrifin and Mohd naseem niaz, Ahmad (2008): Export, Economic Integration and Exchange Rate Volatility in Turkey and Malaysia. Published in: JOURNAL OF INTERNATIONAL FINANCE AND ECONOMICS , Vol. 5, No. 9 (2009): pp. 42-54.

Abstract

Using annual data (1970-2004), this study re-examined the hypothesis that exchange rate volatility may dampen export demand in Malaysia and Turkey. In particular, this study attempts to investigate the impact of exchange rate volatility on exports after taking into consideration the presence of regional economic integration. In addition, the role of regional economic integration in promoting export is also of concern to this study. The empirical evidence demonstrates that despite the significant, minimal impact of membership to regional economic integration for both economies, regional integration remains an important and valid approach for future economic development for both economies. Meanwhile, similar to the findings of previous studies the impact of exchange rate volatility on exports is consistently negative. However, it is no longer significant in the case of Turkey.

• Item Type: MPRA Paper
• Language: English
• Keywords: Export; Exchange rate volatility; Economic integration.
• Subjects: F - International Economics > F1 - Trade > F14 - Empirical Studies of Trade; F - International Economics > F1 - Trade > F15 - Economic Integration; F - International Economics > F3 - International Finance > F31 - Foreign Exchange

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