Paper Title :The Effect of Exchange Rate on Malaysian GDP

Author :Faridah Abdul Halim, Muhammad Rozi Malim

Article Citation :Faridah Abdul Halim ,Muhammad Rozi Malim , (2018 ) " The Effect of Exchange Rate on Malaysian GDP " , International Journal of Management and Applied Science (IJMAS) , pp. 20-24, Volume-4,Issue-10

Abstract : Gross Domestic Product (GDP) is the total value of goods produced and services provided in a country during one year. There are many macroeconomic factors that could affect GDP including the exchange rate. The studies on the relationship between GDP and exchange rate produced mixed results; it could be positive, negative, or no relation at all. However, most studies agreed that there is a positive relationship between these two variables. This study examines the effect of exchange rate on Malaysian GDP using quarterly time series datasets spanning from Q3-2005 to Q1-2017. Two simple time series techniques (trend analysis and simple linear regression) were employed. The trend analysis revealed that the period Q3-2011 to Q1-2017 is more appropriate for this study. The simple linear regression verified that there is a strong correlation between exchange rate and Malaysian GDP; 78.6% of the variation in Malaysian GDP is explained by the exchange rate. This study concluded that there exists a strong positive effect of exchange rate on Malaysian GDP. Keywords- Malaysian GDP, Exchange Rate, Trend Analysis, Simple Linear Regression.

Type : Research paper

Published : Volume-4,Issue-10

	|		PDF	|	Viewed - 45	|	Published on 2019-01-16