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The trilemma constraint - will international reserve or financial development breaks the rule

This research paper is conducted to determine the relationship between the economic growth and Trilemma policy. The Trilemma policies are exchange rate stability, monetary independence and financial openness. However, it is impossible to achieve all policies simultaneously which can be also known as...

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Main Authors: Lock, Edmund Chew Khuen, Loo, Yoong Hang, Ong, Hwa Sin, Peh, Ching Yan
Format: Final Year Project / Dissertation / Thesis
Published: 2020
Subjects:
HG Finance
Online Access:http://eprints.utar.edu.my/4018/1/fyp_FN_2020_LECK_%2D_1506397.pdf
http://eprints.utar.edu.my/4018/
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spelling my-utar-eprints.40182021-03-10T12:44:29Z The trilemma constraint - will international reserve or financial development breaks the rule Lock, Edmund Chew Khuen Loo, Yoong Hang Ong, Hwa Sin Peh, Ching Yan HG Finance This research paper is conducted to determine the relationship between the economic growth and Trilemma policy. The Trilemma policies are exchange rate stability, monetary independence and financial openness. However, it is impossible to achieve all policies simultaneously which can be also known as “impossible trinity”. Therefore, due to the constraint of the Trilemma policy, there is an extension of study to determine the economic growth and Trilemma policy with the interaction term of international reserve and financial development where the financial development to replace financial openness in order to achieve “possible trinity”. The variables involved are Trilemma policy index which are exchange rate stability index, monetary independence index, financial openness index, international reserve and financial development. There are total of 149 countries had been chosen according to the income level of the country respectively to conduct the research. The period of data is from 1981 to 2017 and is collected on annual basis. Besides, unbalanced panel data had been chosen in order to conduct in this research and panel unit root tests, panel model estimation and specification tests analysis will be carried out. In the findings, it is still unable to maximize the economic growth though Trilemma policy with the presence of international reserve. However, the trilemma policy only shows statistically significant to the economic growth with the presence of financial development for high income countries. The findings of this study carry important implications for government policymakers and researcher for a reference or suggestion. 2020-08-30 Final Year Project / Dissertation / Thesis NonPeerReviewed application/pdf http://eprints.utar.edu.my/4018/1/fyp_FN_2020_LECK_%2D_1506397.pdf Lock, Edmund Chew Khuen and Loo, Yoong Hang and Ong, Hwa Sin and Peh, Ching Yan (2020) The trilemma constraint - will international reserve or financial development breaks the rule. Final Year Project, UTAR. http://eprints.utar.edu.my/4018/
institution Universiti Tunku Abdul Rahman
building UTAR Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tunku Abdul Rahman
content_source UTAR Institutional Repository
url_provider http://eprints.utar.edu.my
topic HG Finance
spellingShingle HG Finance
Lock, Edmund Chew Khuen
Loo, Yoong Hang
Ong, Hwa Sin
Peh, Ching Yan
The trilemma constraint - will international reserve or financial development breaks the rule
description This research paper is conducted to determine the relationship between the economic growth and Trilemma policy. The Trilemma policies are exchange rate stability, monetary independence and financial openness. However, it is impossible to achieve all policies simultaneously which can be also known as “impossible trinity”. Therefore, due to the constraint of the Trilemma policy, there is an extension of study to determine the economic growth and Trilemma policy with the interaction term of international reserve and financial development where the financial development to replace financial openness in order to achieve “possible trinity”. The variables involved are Trilemma policy index which are exchange rate stability index, monetary independence index, financial openness index, international reserve and financial development. There are total of 149 countries had been chosen according to the income level of the country respectively to conduct the research. The period of data is from 1981 to 2017 and is collected on annual basis. Besides, unbalanced panel data had been chosen in order to conduct in this research and panel unit root tests, panel model estimation and specification tests analysis will be carried out. In the findings, it is still unable to maximize the economic growth though Trilemma policy with the presence of international reserve. However, the trilemma policy only shows statistically significant to the economic growth with the presence of financial development for high income countries. The findings of this study carry important implications for government policymakers and researcher for a reference or suggestion.
format Final Year Project / Dissertation / Thesis
author Lock, Edmund Chew Khuen
Loo, Yoong Hang
Ong, Hwa Sin
Peh, Ching Yan
author_facet Lock, Edmund Chew Khuen
Loo, Yoong Hang
Ong, Hwa Sin
Peh, Ching Yan
author_sort Lock, Edmund Chew Khuen
title The trilemma constraint - will international reserve or financial development breaks the rule
title_short The trilemma constraint - will international reserve or financial development breaks the rule
title_full The trilemma constraint - will international reserve or financial development breaks the rule
title_fullStr The trilemma constraint - will international reserve or financial development breaks the rule
title_full_unstemmed The trilemma constraint - will international reserve or financial development breaks the rule
title_sort trilemma constraint - will international reserve or financial development breaks the rule
publishDate 2020
url http://eprints.utar.edu.my/4018/1/fyp_FN_2020_LECK_%2D_1506397.pdf
http://eprints.utar.edu.my/4018/
_version_ 1695535850298802176
score 13.211869

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