Law, Chee-Hong and Soon, Siew-Voon and Ehigiamusoe, K. U. (2021) The nonlinear impact of institutional quality on international reserves: International evidence. Journal of International Commerce Economics and Policy, 12 (03). ISSN 1793-9933, DOI https://doi.org/10.1142/S1793993321500149.
Full text not available from this repository.Abstract
This paper investigates the nonlinear effect of institutional quality on the holding of international reserves by applying the two-step system generalized method of moments on data consisting of 67 countries from 1996 to 2016. The hypothesis is that the association between institutional quality and international reserves has an inverted U pattern. The coefficient sign of the institutional quality and its square term supports the hypothesis. Besides, the marginal effects suggest that the higher the institutional quality index, the lower the demand for reserves. The outputs indicate the importance of good institutional quality in reducing the overdependence on international reserves.
| Item Type: | Article |
|---|---|
| Funders: | USM short-term research grant [304/PSOSIAL/6315310] |
| Uncontrolled Keywords: | International reserves; Institutional quality; System GMM; Marginal effect; Nonlinearity |
| Subjects: | H Social Sciences > HB Economic Theory H Social Sciences > HF Commerce > Business |
| Divisions: | Faculty of Business and Economics > Department of Economics and Applied Statistics |
| Depositing User: | Ms Zaharah Ramly |
| Date Deposited: | 26 Aug 2022 02:30 |
| Last Modified: | 26 Aug 2022 02:30 |
| URI: | http://eprints.um.edu.my/id/eprint/35105 |
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