Author Title Methodology Findings / results

Mori The  Qualitative and  There have are positive

Kogid, Effect of secondary data effect the ERs (both nominal
Rozilee Exchange from International and real) on economic
Asid, Rates on Financial Statistics growth. The RER influence
Jaratin Economic (IFS), Department economic growth in the short
Lily, Growth: of Statistics run and recorded positively
Dullah Empirical Malaysia and significant effects in the long
Mulok Testing Central Bank of run.
and on Malaysia.
Nanthaku Nominal  RER found to be stationary at
mar Versus  The level using PP test.
Autoregressive
Lag 
Loganath Real. The ARDL bounds test
an. Distributed
(ARDL) for testing approach revealed the
approach to presence of co-integration
co-integration and relationship between RGDP
Error Correction and both the ERs show a high
Model (ECM) significant relationship with
Date RER.
Publishe based on ARDL
d: framework.  NER and RER have positive
January  Dickey-Fuller (DF) effect on RGDP where
2012 or Augmented long-run coefficients is
Dickey-Fuller 8.7753 and 7.6111
(ADF) (Dickey respectively.
and Fuller, 1979),  The RER increases by 1%,
Phillips-Perron the RGDP will increase by
(PP) (Phillips and about 7.6111%. Where if
Perron, 1988), and RER increases, the Malaysian
DickeyFuller-Gene ringgit tends to depreciate,
ralized Least the domestic prices are
Square (DF-GLS) cheaper so the import
(Elliott et al., demands from other countries
1996) unit root also increase (indirectly
tests applied for increasing Malaysian exports)
check the and eventually increasing the
stationarity of the Malaysian RGDP.
series
 The ER growth causes
economic growth.
Rozilee The  Quantitative and  Based on the graph the
Asid, Impact of secondary data IPIDX trend increases over
Mohd Foreign from the time from 1970 to 2011 and
Hizar Direct International FDI and RER show an
Farhan Investme Statistics (IFS) obvious fluctuating cycle
Abdul nt and from 1970 to 2011. over time, with RER being
Razi, Real slightly more volatile.
Dullah Exchange  Used the ARDL
Mulok, Rate on method, unit root  in the long run, the effect of
Mori Economic tests such as ADF real exchange rate is
Kogid, Growth in and KPSS, and insignificant even the sign is
and Malaysia: Engle-Granger. found to be positively related
Jaratin Some to growth.
Lily. Empirical  If the accumulated
Evidence. F-test is rejected at  In the short run the effect of
the prespecified real exchange rate towards
critical value growth is significant.
Date (normally 5%),
published there a strong  The contributions of FDI
: June evidence of towards growth in the long
2014 long-run run were estimated
relationship approximately around 0.2%,
(cointegration). whereas the effect of RER
insignificantly low around
0.03%.
 the FDI and RER is
significantly affecting
production growth in the
short run. The effect of FDI
and RER estimated around
0.07% respectively with
(marginally) slow speed of
adjustment to reach long run
convergence.
 The RER in short run is
significantly affected the
economic growth and not in
the long run because of
possible break in time series
and price adjustment.
Jaratin Exchange  Quantitative and  As a result, there a long-run
Lily, Rate secondary data, cointegration relationships
Mori Movemen FDI and exchange between FDI and exchange
Kogid, t and rate for the period rate in the case of Malaysia,
Dullah Foreign of 1971–2011. the Philippines, and
Mulok, Direct Singapore, but none in
Lim Investme  Data from the Thailand.
Thien nt in United Nations
Sang, Asean Conference on  In table 3 show the associated
and Economie Trade and estimated longrun
Rozilee s. Development coefficients based on ARDL
Asid (UNCTAD) FDI models between FDI and
database, World exchange rate where all the
Development coefficients have the correct
Indicators and sign as expected.
Date Global
published Development  In table 4, the ECM-ARDL
: 30 Finance databases. test Singapore and the
March Philippines show long-run
2014  The 4 ASEAN bidirectional causality
countries between exchange rate and
(Malaysia, FDI.
Philippines,
Singapore, and  The long-run unidirectional
Thailand). causality running from the
exchange rate to the FDI
 Adjusted FDI exists in Malaysia.
(AFDI): AFDI =
 There also show the short-run
FDICurrentPrice/ unidirectional causality
GDP2000 running from the exchange
 purchasing power rate to the FDI in Singapore.
parity  The error correction
(PPP)approach. coefficients are significant for
 Wholesale Price all countries,the Philippines
Index (WPI) of the and Singapore have the
USA and the correct sign and suggest from
Consumer Price low to moderate speed of
Index (CPI) for convergence to equilibrium,
price level. which is about 21% to 44%
(the Philippines)and 10% to
 RER = NER 38% (Singapore).
×(PUS/PH) = NER
×(WPI/CPI ).  The estimated error
correction coefficient for
 The cointegration Malaysia also has the correct
and Error sign with at low to moderate
Correction Model speed of convergence where
(ECM) based is about 10% to 52%.
ARDL for
causality tests, unit  Thus, the long-run
root test,the disequilibrium is corrected
Dickey-Fuller-Gen every year for about 21% to
eralized Least 44% in the Philippines, 10%
Square, DF-GLS. to 38% in Singapore, and
10% to 52% in Malaysia.

References

1. Jaratin Lily, Mori Kogid, Dullah Mulok, Lim Thien Sang, and Rozilee Asid (2014),
“Exchange Rate Movement and Foreign Direct Investment in Asean Economies”,
Journal of Economics Research International, Retrieved from:
https://www.hindawi.com/journals/ecri/2014/320949/abs/
2. Mori Kogid, Rozilee Asid, Jaratin Lily, Dullah Mulok and Nanthakumar
Loganathan (2012), “The Effect of Exchange Rates on Economic Growth: Empirical
Testing on Nominal Versus Real”, IUP Journal of Financial Economics, Retrieved
from: file:///C:/Users/my%20pc/Downloads/IUPJournalofEconomicsMoriUMS.pdf

3. Rozilee Asid, Mohd Hizar Farhan Abdul Razi, Dullah Mulok, Mori Kogid, and
Jaratin Lily (2014), “The Impact of Foreign Direct Investment and Real Exchange
Rate on Economic Growth in Malaysia: Some Empirical Evidence”, Malaysian
Journal of Business and Economics (MJBE), Retrieved from:
https://www.researchgate.net/profile/Jaratin_Lily/publication/266735324_The_Impact
_of_Foreign_Direct_Investment_and_Real_Exchange_Rate_on_Economic_Growth_i
n_Malaysia_Some_Empirical_Evidence/links/54800dfa0cf2ccc7f8bb0a3f/The-Impact
-of-Foreign-Direct-Investment-and-Real-Exchange-Rate-on-Economic-Growth-in-Ma
laysia-Some-Empirical-Evidence.pdf