Factors affecting the exchange rate in Malaysia / Syahirah Yusri Kamaruzaman

This study attempts to investigate the relationship between exchange rate and the independent variables, which are, inflation, government expenditure, foreign direct investment and export trade in Malaysia. Secondary data was sourced within the period 1986 to 2016, which was collected from the World...

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Bibliographic Details
Main Author: Yusri Kamaruzaman, Syahirah
Format: Thesis
Language:English
Published: 2017
Subjects:
Online Access:https://ir.uitm.edu.my/id/eprint/92017/1/92017.pdf
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Summary:This study attempts to investigate the relationship between exchange rate and the independent variables, which are, inflation, government expenditure, foreign direct investment and export trade in Malaysia. Secondary data was sourced within the period 1986 to 2016, which was collected from the World Bank Dara. On the other hand, the technique implemented to estimate the model was Autoregressive Distributed Lag (ARDL). The results showed that the determinant factors of exchange rate through government expenditure and export trade are capable of influencing the exchange rate and negatively related and statistically significant to the exchange rate. However, the result showed insignificant impact and negative correlation between inflation and foreign direct investment, and exchange rate. Although this study experienced few limitations, thence the recommendations have been suggested to the future researchers.