{"id":6384,"date":"2021-07-03T10:59:17","date_gmt":"2021-07-03T02:59:17","guid":{"rendered":"https:\/\/www.ukm.my\/jem\/?post_type=article&#038;p=6384"},"modified":"2022-07-27T07:03:28","modified_gmt":"2022-07-26T23:03:28","slug":"the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence","status":"publish","type":"article","link":"https:\/\/www.ukm.my\/jem\/article\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\/","title":{"rendered":"The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence"},"content":{"rendered":"<p><em>The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointegration among variables and the dynamic effect within variables in the short-run over the sample period. The results suggest that inflation rate and national income growth rate play important roles in influencing exchange rate movement. The results also reveal that the misalignment of exchange rates is quite small and stable during 1988 to 2019, except for 2015 which was attributed to the weaker growth in China. Consecutively, this study suggests that the parity condition is only important in the long-run in explaining exchange rates behaviour for the sample country.<\/em><\/p>\n","protected":false},"template":"","tags":[365,1271,1270,1272],"jel-code":[1273,1274,1275,1276,1277,1278],"article-type":[1329],"class_list":["entry","author-asriwn","post-6384","article","type-article","status-publish","tag-autoregressive-distributed-lag-ardl","tag-bound-testing","tag-equilibrium-exchange-rates-eer","tag-exchange-rates-misalignment","jel-code-e43","jel-code-e52","jel-code-f31","jel-code-f32","jel-code-f33","jel-code-f41","article-type-normal-article"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence | Jurnal Ekonomi Malaysia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ukm.my\/jem\/article\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence | Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"og:description\" content=\"The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. This study adopts the Autoregressive Distributed Lag model to examine the long-run relationships or cointegration among variables and the dynamicContinue Reading\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.ukm.my\/jem\/article\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\/\" \/>\n<meta property=\"og:site_name\" content=\"Jurnal Ekonomi Malaysia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\" \/>\n<meta property=\"article:modified_time\" content=\"2022-07-26T23:03:28+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@EkonomiJurnal\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\\\/\",\"name\":\"The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence | Jurnal Ekonomi Malaysia\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\"},\"datePublished\":\"2021-07-03T02:59:17+00:00\",\"dateModified\":\"2022-07-26T23:03:28+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Articles\",\"item\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/article\\\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#website\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"name\":\"Jurnal Ekonomi Malaysia\",\"description\":\"Universiti Kebangsaan Malaysia\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#organization\",\"name\":\"Jurnal Ekonomi Malaysia\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"contentUrl\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/wp-content\\\/uploads\\\/2021\\\/05\\\/cropped-browser-icon-letter-1.png\",\"width\":512,\"height\":308,\"caption\":\"Jurnal Ekonomi Malaysia\"},\"image\":{\"@id\":\"https:\\\/\\\/www.ukm.my\\\/jem\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/Jurnal-Ekonomi-Malaysia-JEM-104142808087485\",\"https:\\\/\\\/x.com\\\/EkonomiJurnal\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence | Jurnal Ekonomi Malaysia","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ukm.my\/jem\/article\/the-macroeconomic-fundamentals-of-the-real-exchange-rate-in-malaysia-some-empirical-evidence\/","og_locale":"en_US","og_type":"article","og_title":"The Macroeconomic Fundamentals of the Real Exchange Rate in Malaysia: Some Empirical Evidence | Jurnal Ekonomi Malaysia","og_description":"The aim of this paper is to estimate the equilibrium of exchange rates and identify the roles of macroeconomics fundamentals affecting exchange rates using Malaysian data spanning 1970 to 2019. 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