Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham

Exchange rate has become an important role in the country's level trade activity. The profit or losses from import and export activities are depending on current exchange rate. This research paper will study about the determinants of exchange rate volatility in Malaysia over 1970 until 2015. Th...

Full description

Saved in:

Bibliographic Details
Main Author:	Idham, Nur Amira Shahira
Format:	Thesis
Language:	English
Published:	2017
Subjects:	Foreign exchange Foreign exchange rates
Online Access:	https://ir.uitm.edu.my/id/eprint/94063/1/94063.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.94063
record_format	uketd_dc
spelling	my-uitm-ir.940632024-06-18T06:43:27Z Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham 2017-07 Idham, Nur Amira Shahira Foreign exchange. Foreign exchange rates Exchange rate has become an important role in the country's level trade activity. The profit or losses from import and export activities are depending on current exchange rate. This research paper will study about the determinants of exchange rate volatility in Malaysia over 1970 until 2015. This research use Ringgit Malaysia as a proxy of currency of exchange rate which is dependent variable with six (6) independent variables; gross domestic product (GDP), inflation rate, interest rate, trade openness, foreign direct investment and foreign debt. The key question in this research is which determinant is the most influence the exchange rate volatility in Malaysia. For this research, diagnostics test which is Multicollinearity test, Heteroscadesticity test, Serial Correlation test, Stationary Test, Normality test and RAMSEY test have been used to answer the key question. The result from the tests are the data are normally distributed (normality test), there is a serial correlation (autocorrelation), there is no heteroscadesticity (Heteroscadesticity), no correlation (multicollinearity test) and there is no misspecification of functional form (RAMSEY). As a conclusion, the result than can be drawn from this research paper is foreign direct investment, foreign debt, reserve, trade and unemployment rate are positively related to exchange rate volatility in Malaysia whereas gross domestic product (GDP), interest rate and inflation rate are negatively related. 2017-07 Thesis https://ir.uitm.edu.my/id/eprint/94063/ https://ir.uitm.edu.my/id/eprint/94063/1/94063.pdf text en public degree Universiti Teknologi MARA, Johor Faculty of Business Management Md Lazan, Rohanizan Roslan, Shashazrina
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Md Lazan, Rohanizan Roslan, Shashazrina
topic	Foreign exchange Foreign exchange rates
spellingShingle	Foreign exchange Foreign exchange rates Idham, Nur Amira Shahira Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham
description	Exchange rate has become an important role in the country's level trade activity. The profit or losses from import and export activities are depending on current exchange rate. This research paper will study about the determinants of exchange rate volatility in Malaysia over 1970 until 2015. This research use Ringgit Malaysia as a proxy of currency of exchange rate which is dependent variable with six (6) independent variables; gross domestic product (GDP), inflation rate, interest rate, trade openness, foreign direct investment and foreign debt. The key question in this research is which determinant is the most influence the exchange rate volatility in Malaysia. For this research, diagnostics test which is Multicollinearity test, Heteroscadesticity test, Serial Correlation test, Stationary Test, Normality test and RAMSEY test have been used to answer the key question. The result from the tests are the data are normally distributed (normality test), there is a serial correlation (autocorrelation), there is no heteroscadesticity (Heteroscadesticity), no correlation (multicollinearity test) and there is no misspecification of functional form (RAMSEY). As a conclusion, the result than can be drawn from this research paper is foreign direct investment, foreign debt, reserve, trade and unemployment rate are positively related to exchange rate volatility in Malaysia whereas gross domestic product (GDP), interest rate and inflation rate are negatively related.
format	Thesis
qualification_level	Bachelor degree
author	Idham, Nur Amira Shahira
author_facet	Idham, Nur Amira Shahira
author_sort	Idham, Nur Amira Shahira
title	Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham
title_short	Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham
title_full	Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham
title_fullStr	Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham
title_full_unstemmed	Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham
title_sort	determinants of exchange rate volatility in malaysia / nur amira shahira idham
granting_institution	Universiti Teknologi MARA, Johor
granting_department	Faculty of Business Management
publishDate	2017
url	https://ir.uitm.edu.my/id/eprint/94063/1/94063.pdf
_version_	1804889918260903936

Determinants of exchange rate volatility in Malaysia / Nur Amira Shahira Idham

Similar Items