The Relationship between Terms-of-Trade and Trade Balance in Asean-5

  • Wong Hock Tsen School of Business and Economics Universiti Malaysia Sabah

Abstract

This study investigated the relationship between terms-of-trade and trade balance in the ASEAN-5, namely Indonesia, Malaysia, the Philippines, Singapore, and Thailand, using time series data. Moreover, this study examined the Granger causality between terms-of-trade and trade balance. This study uses commodity terms-of-trade. The results showed that there is a long-run relationship between terms-of-trade and trade balance in the ASEAN-5, except for Indonesia and Singapore. Furthermore, the results showed that Granger causality between terms-of-trade and trade balance is mixed. The mixed results of the relationship between terms-of-trade and trade balance are consistent with the ongoing debate in the literature of terms-of-trade and trade balance.

 

Published
2020-05-17
How to Cite
TSEN, Wong Hock. The Relationship between Terms-of-Trade and Trade Balance in Asean-5. International Journal of Management Studies, [S.l.], v. 15, n. 1, p. 1-19, may 2020. ISSN 2180-2467. Available at: <http://e-journal.uum.edu.my/index.php/ijms/article/view/9862>. Date accessed: 06 june 2020.