An examination of the relationship between exchange rate and export demand in China / Noorazlina Ahmad, Fadli Fizari Abu Hassan Asari and Sakinah Mat Zin

Ahmad, Noorazlina and Abu Hassan Asari, Fadli Fizari and Mat Zin, Sakinah (2012) An examination of the relationship between exchange rate and export demand in China / Noorazlina Ahmad, Fadli Fizari Abu Hassan Asari and Sakinah Mat Zin. [Research Reports] (Unpublished)

Abstract

The effect of export performance on exchange rate reflects the increasing degree of financial market integration. They are important for both theoretical and empirical considerations. This study empirically investigates the relationship between export and exchange rate with respect to China. Objectives of this research are to identify whether exchange rate has a significant and direct impact on export volume and also to determine whether there is a long-run equilibrium relationship between the variables in the export demand functions. Specifically, this paper attempts to analyze the impact of exchange rate volatility on export performance. In order to achieve this objective, the Vector Error Correction Model (VECM) is employed to determine whether stock prices affect the exchange rate. Based on 48 years (1962 - 2010) annual data for China, the findings reveal that exchange rate volatility is not effective in the short run.

Metadata

Item Type: Research Reports
Creators:
Creators
Email / ID Num.
Ahmad, Noorazlina
UNSPECIFIED
Abu Hassan Asari, Fadli Fizari
UNSPECIFIED
Mat Zin, Sakinah
UNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography > Economics
H Social Sciences > HB Economic Theory. Demography > Macroeconomics
H Social Sciences > HB Economic Theory. Demography > Value. Utility. Value added
H Social Sciences > HC Economic History and Conditions > Income. Income distribution. National income. Including gross national product, gross domestic product, and gross state product
H Social Sciences > HG Finance > Interest rates > Malaysia
H Social Sciences > HG Finance > Money > Money and prices. Inflation. Deflation. Purchasing power
H Social Sciences > HG Finance > Investment, capital formation, speculation > Government securities. Industrial securities. Venture capital
H Social Sciences > HJ Public Finance > Revenue. Taxation. Internal revenue
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus > Faculty of Business and Management
Keywords: Exchange Rate ; Export Demand ; Export Performance ; Vector Error Correction Model
Date: December 2012
URI: https://ir.uitm.edu.my/id/eprint/52396
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