Long Run Relationship between Global Electronic Cycle, Yen/Dollar Exchange Rate and Malaysia Export

Depreciations of the Japanese Yen vis-a-vis the US Dollar have been shown to be negatively affecting East Asian economies. Studies have also shown a high correlation between the Yen/US Dollar exchange rate and the electronic cycle, therefore the negative relationship may be due to the global electronic cycle instead of the Yen/Dollar exchange rate. This paper examines the importance of the fluctuations in the global electronic market and the Yen/Dollar exchange rate in influencing Malaysia's exports and subsequently its output by using the ARDL approach.