Tze-Haw Chan

A macro assessment of China effects on Malaysian exports and trade balances

This paper focuses on the impact of China’s export expansion on Malaysian monthly trading with to her 12 major trading partners over the liberalization era. Structural break(s) found mostly coincides with the Asia financial crisis and China’s accession into WTO and, regime shifts are evident in the long run relationship among the variables being studied. While the income effects are more apparent, real exchanges are rather insignificant and incorrectly signed for Malaysian bilateral trading. An attempt to correct current account imbalances by currency devaluation would thereby inappropriate. In addition, estimation of the trade balance models is more superior that complementary China effects are better captured for Malaysia trading with the advanced markets such as Australia, German, Japan, UK and the US. Such finding may partly due to the increase in global product fragmentation

Malaysia–China in the Liberalization Era: Structural Modelling of International Parity Conditions and Transmission Mechanism

Abstract We construct a structural system that jointly examines Purchasing Power and Interest Parity conditions for Malaysia–China during 1996Q1–2010Q4. Structural VARX, VECMX, over-identifying restrictions, bootstrapping and persistent profiles are utilized in the analyses. We find support for interaction between the goods and capital markets of Malaysia–China, when Asia crisis and sub-prime crisis are taken into accounts. The faster pace of adjustment towards price instead of interest equilibrium implies the non-appearance of sequencing problem in economic integration. Nevertheless, it is of concern that maintaining a rigid foreign exchange with major trading partner could be costly with potentially contagious price instability and financial risk.

Financial Integration between China and Asia Pacific

Unlike her neighboring countries in East Asia, China’s economic reform programs are relatively recent, attributed to the closed-door policy and centrally planned economic system of the 1950s to the 1970s. However, the affluent human capital and economic resources have provided China the new impetus to reinvigorate the economic reforms since 1978, and the economic progress of this economy is eye-catching. Within three decades, China has transformed itself from a rigid central-planning system to an increasingly open and market-oriented economy, with the achievement of an average 9.7 per cent real GDP growth per annum. As of November 2007, China recorded a nominal GDP of US

Real Financial Integration among the East Asian Economies: A SURADF Panel Approach

3.42 trillion and has the fourth largest economy after the United States, Japan and Germany. China’s GDP officially overtook Japan in the second quarter of 2010, although the per capita GDP (

Dynamic Financial Linkages of Japan and ASEAN Economies: An Application of Real Interest Parity

8,394) is still significantly lower than that of Japan (

A structural VARX modelling of international parities between China and Japan in the liberalization era

39,731) and the United States (

Measuring Capital Mobility in the Asia Pacific Rim

46,380).