A study on determination factors that influence export activity between Malaysia and GCC countries / Ernie Emira Othman

This paper analyzes the performance of Malaysia bilateral exports towards Gulf Cooperation Council (GCC) countries including of Bahrain, Oman, Qatar, Kuwait, United Arab Emirates and Arab Saudi and then analyzes whether the export performance towards these countries can be improved through with the...

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Bibliographic Details
Main Author: Othman, Ernie Emira
Format: Student Project
Language:English
Published: 2012
Subjects:
Online Access:http://ir.uitm.edu.my/id/eprint/40181/1/40181.pdf
http://ir.uitm.edu.my/id/eprint/40181/
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Summary:This paper analyzes the performance of Malaysia bilateral exports towards Gulf Cooperation Council (GCC) countries including of Bahrain, Oman, Qatar, Kuwait, United Arab Emirates and Arab Saudi and then analyzes whether the export performance towards these countries can be improved through with the higher and lower inflation and interest rates, also through depreciation or devaluation of domestic currency by using co-integration technique. Based on the findings, it can be said that inflation and interest rates has positive and significant, while exchange rate has positive and insignificant relationship with the export volume between Malaysia and GCC countries. The findings also indicate that the regression equation is overall significant with the dependent variable and the model is valid for forecasting. However, the major policy implication from this study is that with high inflation, lower interest rate and depreciation of local currency can improve the competitiveness Malaysian exports towards GCC countries