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Demand For International Reserves in ASEAN-5 Economies

Author

Listed:
  • Eliza, Nor
  • M., Azali
  • Law, Siong-Hook
  • Lee, Chin

Abstract

The ASEAN-5 economies were observed to increase their demand for international reserves after the 1997 Asian financial crisis. This was coincided with their consistent current account surplus during the same period. Thus, this study attempts to investigate the existence of long-run relationship between reserve demand and current account for the period of 1997-2005. The Autoregressive Distributed Lag (ARDL) bounds test approach as proposed by Pesaran, Shin, and Smith (2001) was employed, and the empirical results revealed that current account surplus leads to the rise in the demand for international reserves in Indonesia, Malaysia, and Singapore.

Suggested Citation

  • Eliza, Nor & M., Azali & Law, Siong-Hook & Lee, Chin, 2008. "Demand For International Reserves in ASEAN-5 Economies," MPRA Paper 11735, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:11735
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    File URL: https://mpra.ub.uni-muenchen.de/11735/1/MPRA_paper_11735.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. Lavaneesvari Manogaran* & Siok Kun Sek, 2018. "Examining the Threshold Effect of Exchange Rate Changes on Monetary Policy Reaction Function of ASEAN-5: A Panel Threshold Approach," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 243-248:2.
    2. Gonzaga, Gustavo & Terra, Cristina & Muriel Hernandez, Beatriz, 2014. "Wage Differentials: Trade Openness and Wage Bargaining," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 34(1), March.

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    More about this item

    Keywords

    Bound Test; ARDL Approach; International Reserves; ASEAN-5;
    All these keywords.

    JEL classification:

    • F3 - International Economics - - International Finance
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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