DOIONLINE 
DOIONLINE Publish In |
International Journal of Management and Applied Science (IJMAS)-IJMAS |
 Journal Home Volume Issue |
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Issue |
Volume-4,Issue-10 ( Oct, 2018 ) | |||||||||
Paper Title |
The Effect of Exchange Rate on Malaysian GDP | |||||||||
Author Name |
Faridah Abdul Halim, Muhammad Rozi Malim | |||||||||
Affilition |
Faculty of Computer and Mathematical Sciences, Universiti Teknologi MARA, 40450 Shah Alam, Malaysia | |||||||||
Pages |
20-24 | |||||||||
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. | |||||||||
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