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Does Exchange Rate Variability Affect The Causation Between Foreign Direct Investment And Electronics Exports? An Empirical Test Using Malaysian Data

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Listed:
  • Koi Nyen Wong
  • Tuck Cheong Tang

Abstract

This paper finds that exchange rate variability does affect the causation between FDI and electronics exports using Malaysia’s top five electronics exports by SITC (Standard International Trade Classification) product groups. The Granger causation runs from FDI to exports of automatic data processing equipment; and from the radio-broadcast receivers with sound recorders or reproducers exports to FDI.

Suggested Citation

  • Koi Nyen Wong & Tuck Cheong Tang, 2007. "Does Exchange Rate Variability Affect The Causation Between Foreign Direct Investment And Electronics Exports? An Empirical Test Using Malaysian Data," Monash Economics Working Papers 12-07, Monash University, Department of Economics.
    • Handle: RePEc:mos:moswps:2007-12
    as

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    File URL: http://www.buseco.monash.edu.au/eco/research/papers/2007/1207exchangewongtang.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Causality; electronics exports; foreign direct investment;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

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