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

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  • masron, Tajul arrifin
  • Mohd naseem niaz, Ahmad

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.

Suggested Citation

  • masron, Tajul arrifin & Mohd naseem niaz, Ahmad, 2008. "Export, Economic Integration and Exchange Rate Volatility in Turkey and Malaysia," MPRA Paper 41519, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:41519
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    Cited by:

    1. Ronald Miranda & Gabriela Mordecki, 2015. "Real exchange rate volatility impact on exports: A comparative study 1990-2013," Documentos de Trabajo (working papers) 15-18, Instituto de Economía - IECON.

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    More about this item

    Keywords

    Export; Exchange rate volatility; Economic integration.;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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