Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia

The present study attempts to examine the non-linear relationship between terms of trade growth and economic growth in Malaysia by estimating precise threshold levels of terms of trade growth in each trading sector. In methodology, it employs relatively new econometric methods for threshold estimati...

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Main Author:	Duasa, Jarita
Format:	Article
Language:	English English
Published:	International Economic Society 2011
Subjects:	HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations
Online Access:	http://irep.iium.edu.my/3996/ http://irep.iium.edu.my/3996/ http://irep.iium.edu.my/3996/1/fulltext%28IJEP%29.pdf http://irep.iium.edu.my/3996/4/Terms_of_trade_Jarita.pdf

id	iium-3996
recordtype	eprints
spelling	iium-39962012-05-24T02:09:01Z http://irep.iium.edu.my/3996/ Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia Duasa, Jarita HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations The present study attempts to examine the non-linear relationship between terms of trade growth and economic growth in Malaysia by estimating precise threshold levels of terms of trade growth in each trading sector. In methodology, it employs relatively new econometric methods for threshold estimation and inference to ensure the significance of a structural break in the model as proposed by Hansen (1996, 2000). The results show that only prices of export and import of mineral fuels, lubricants and related materials (SITC3) is significantly and negatively affect the economic growth of the country. There also exists threshold effects in the relationship with two thresholds are identified and tested. The finding is that the negative impact is very much larger when the terms of trade growth is below the threshold of -1.576% but lesser when the terms of trade growth is higher than 0.0018%. International Economic Society 2011 Article PeerReviewed application/pdf en http://irep.iium.edu.my/3996/1/fulltext%28IJEP%29.pdf application/pdf en http://irep.iium.edu.my/3996/4/Terms_of_trade_Jarita.pdf Duasa, Jarita (2011) Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia. International Journal of Economics Perspectives, 5 (1). pp. 21-43. ISSN 13071637 (In Press) http://www.econ-society.org/journals/ijep/2011/duasa5.1.htm
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations
spellingShingle	HB131 Methodology.Mathematical economics. Quantitative methods HB3711 Business cycles. Economic fluctuations Duasa, Jarita Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia
description	The present study attempts to examine the non-linear relationship between terms of trade growth and economic growth in Malaysia by estimating precise threshold levels of terms of trade growth in each trading sector. In methodology, it employs relatively new econometric methods for threshold estimation and inference to ensure the significance of a structural break in the model as proposed by Hansen (1996, 2000). The results show that only prices of export and import of mineral fuels, lubricants and related materials (SITC3) is significantly and negatively affect the economic growth of the country. There also exists threshold effects in the relationship with two thresholds are identified and tested. The finding is that the negative impact is very much larger when the terms of trade growth is below the threshold of -1.576% but lesser when the terms of trade growth is higher than 0.0018%.
format	Article
author	Duasa, Jarita
author_facet	Duasa, Jarita
author_sort	Duasa, Jarita
title	Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia
title_short	Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia
title_full	Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia
title_fullStr	Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia
title_full_unstemmed	Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia
title_sort	terms of trade and economic growth: an estimate of the threshold level of terms of trade for malaysia
publisher	International Economic Society
publishDate	2011
url	http://irep.iium.edu.my/3996/ http://irep.iium.edu.my/3996/ http://irep.iium.edu.my/3996/1/fulltext%28IJEP%29.pdf http://irep.iium.edu.my/3996/4/Terms_of_trade_Jarita.pdf
first_indexed	2023-09-18T20:12:02Z
last_indexed	2023-09-18T20:12:02Z
_version_	1777407541503852544

Terms of trade and economic growth: an estimate of the threshold level of terms of trade for Malaysia

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