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

Authors

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

DOI:

https://doi.org/10.32890/ijms2008.15.1.1

Keywords:

Terms-of-trade, trade balance, ASEAN-5, cointegration, Granger causality

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.

 

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Published

26-06-2008

Issue

Vol. 15 No. 1 (2008): International Journal of Management Studies (IJMS) Vol. 15, No. 1 June 2008

Section

Articles

Research impact

Harvested 2026-09-24
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Identifiers DOI 10.32890/ijms2008.15.1.1 OpenAlex W7005702598

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