- Evan Lau is currently servicing as a senior lecturer at the Faculty of Economics and Business, Universiti Malaysia Sa... moreEvan Lau is currently servicing as a senior lecturer at the Faculty of Economics and Business, Universiti Malaysia Sarawak (UNIMAS) and Managing Editor of International Journal of Business and Society (IJBS). He teaches both the undergraduates and the graduate courses and actively involves in research covering the areas of Applied Macroeconomics. To date, Evan Lau has impressive volume of articles in refereed journals (more than 60) and has also presented his research works in many international and local conferences.edit
In this article, we investigate the financial linkages between the East Asian economies with Japan and the United States. We test for long-run Real Interest-rate Parity (RIP) using an array of panel-data techniques, including recent... more
In this article, we investigate the financial linkages between the East Asian economies with Japan and the United States. We test for long-run Real Interest-rate Parity (RIP) using an array of panel-data techniques, including recent techniques developed by Breuer et al.(2002) and Carrion-i-Silvestre et al.(2005). This study offers two important results: first, the failure to account for structural breaks in the industrialized countries and Asian emerging economies is likely to provide evidence of nonstationary series that are stationary.
This study aims to examine the sustainability of balancing item („net errors and omissions‟) of balance of payment accounts for OIC (Organisation of the Islamic Conference) member countries. The series specific panel unit root test... more
This study aims to examine the sustainability of balancing item („net errors and omissions‟) of balance of payment accounts for OIC (Organisation of the Islamic Conference) member countries. The series specific panel unit root test (SURADF unit root tests) suggests that 9 out of 23 sampled OIC member countries have their balancing item sustainable-Albania, Coted‟ Ivoire, Indonesia, Kuwait, Malaysia, Mozambique, Pakistan, Tunisia, and Uganda.
ABSTRACT This paper investigates the relevance of the twin deficits hypothesis (TDH) in five Association of Southeast Asian Nations (ASEAN) countries. We examine the causal relation between current account deficits, budget deficits and... more
ABSTRACT This paper investigates the relevance of the twin deficits hypothesis (TDH) in five Association of Southeast Asian Nations (ASEAN) countries. We examine the causal relation between current account deficits, budget deficits and investments. The empirical findings may be summarised as follows. First, TDH holds only for three countries: Malaysia, Thailand and the Philippines. In other words, a budget deficit plays a significant role in the determination of a current account deficit in all the three countries.
Among the 14 Pacific Island countries (PICs), only Papua New Guinea has fossil fuel resources. None of the remaining 13 PICs has any energy sources. Consequently, all the 13 PICs are totally dependent on oil imports for their economic... more
Among the 14 Pacific Island countries (PICs), only Papua New Guinea has fossil fuel resources. None of the remaining 13 PICs has any energy sources. Consequently, all the 13 PICs are totally dependent on oil imports for their economic activities. Recent surges and volatility in oil prices have had serious economic re-percussions on economic growth.
Abstract Understanding the impact of energy consumption on economic growth is an important consideration in the formulation of both energy and environmental policies. Motivated by this development, this paper empirically re-examines the... more
Abstract Understanding the impact of energy consumption on economic growth is an important consideration in the formulation of both energy and environmental policies. Motivated by this development, this paper empirically re-examines the direction of causality and the sign (in the panel sense) between energy consumption (EC) and the gross-domestic product (GDP) for seventeen selected Asian countries.
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This paper adopted the series specific panel unit root test of Breuer et al.[Oxford Bulletin of Economics and Statistics 64 (2002, SURADF) 527–546] to test for the mean-reverting behavior of current account for the panel of twelve Asian... more
This paper adopted the series specific panel unit root test of Breuer et al.[Oxford Bulletin of Economics and Statistics 64 (2002, SURADF) 527–546] to test for the mean-reverting behavior of current account for the panel of twelve Asian countries. The results illustrate that the current accounts in these countries are a mixture of I (0) and I (1) process and the commonly used panel root tests could lead to misleading inferences.
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The understanding of the sustainable external imbalances over the 1961-2001 for Malaysia is presented in this paper. The empirical results clearly show that inflows and outflows share a common stochastic trend prior to the 1997 Asian... more
The understanding of the sustainable external imbalances over the 1961-2001 for Malaysia is presented in this paper. The empirical results clearly show that inflows and outflows share a common stochastic trend prior to the 1997 Asian crisis while in the post-crisis period the current account surpluses are on an unsustainable path. Our findings highlight the important role of imports (mainly intermediate inputs) in exports. For an economy that depends on export promotion for its growth process, imports are important in restoring external ...
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In this paper, the twin deficits hypothesis was examined using data of nine SEACEN countries. To compensate for the lack of time series observations, data was polled from the nine countries into one panel. The effects of interest rate and... more
In this paper, the twin deficits hypothesis was examined using data of nine SEACEN countries. To compensate for the lack of time series observations, data was polled from the nine countries into one panel. The effects of interest rate and exchange rate in the causal ...
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Research Interests: Economics, Monte Carlo Simulation, PPP, Applied Economics, Trade, and 13 moreApplied Economics Letters, Linear Model, Low Power, Exchange rate, Public health systems and services research, Purchasing Power Parity, Unit Root, Unit Root Test, Real Exchange Rate, Transaction Cost, Economic, UNIT ROOTS, and Mean Reversion
Research Interests: Time Series, International Cooperation, China, Economic integration, Applied Economics, and 11 moreFree Trade, Developing Country, Business and Management, South east Asia, Research Paper, Design Methodology, Income, Econometric analysis, Unit Root, Gross Domestic Product (GDP), and Granger Causality Test
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Abstract With the concept of bilateral trade sustainability in hand, this paper empirically examines the Malaysia-China and Malaysia-India trade relationships. Through the adoption of an annual data span, we found significant long run... more
Abstract With the concept of bilateral trade sustainability in hand, this paper empirically examines the Malaysia-China and Malaysia-India trade relationships. Through the adoption of an annual data span, we found significant long run cointegration relationships for the bilateral trade performance parallel with support of the strong form sustainability condition. Effectively bringing to mind the insofar effective macroeconomic policies of exports and imports in long run equilibrium, further trade liberalization policies should be adopted so ...
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Vol. 64 (2002), pp. 527–546), we found the budget process for most developing countries fails to satisfy the strong-form sustainability condition. Further investigation shows the budget process for a majority of the countries is on a... more
Vol. 64 (2002), pp. 527–546), we found the budget process for most developing countries fails to satisfy the strong-form sustainability condition. Further investigation shows the budget process for a majority of the countries is on a sustainable path (weak form) when a one-time, structural break is allowed in the model. Therefore, our empirical results suggest that the budget process in most of the sample countries is in accordance with the intertemporal budget constraint.
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Abstract This study reexamines the validity of long-run purchasing power parity (PPP) hypothesis using a battery of panel unit root tests for 11 developing countries in Africa over the period 1980-2007. Based on the conventional panel... more
Abstract This study reexamines the validity of long-run purchasing power parity (PPP) hypothesis using a battery of panel unit root tests for 11 developing countries in Africa over the period 1980-2007. Based on the conventional panel unit root tests, we found evidence that the monthly real exchange rates in these countries were mean reverting. By contrast, the series-specific unit root test proposed by Breuer et al.(SURADF) reveals that only six of the 11 RERs series were stationary using the US dollar as reference currency. Additionally, ...
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Research Interests: Unit Root and Arima Model
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Asymmetry tests, which were bifurcated into deepness and steepness tests, proposed by Sichel (1993) are applied to the business cycles of 11 developing countries. These tests provide evidence of statistically significant negative deepness... more
Asymmetry tests, which were bifurcated into deepness and steepness tests, proposed by Sichel (1993) are applied to the business cycles of 11 developing countries. These tests provide evidence of statistically significant negative deepness and steepness only for Malawi. Such ...
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This paper endeavors to contribute to the debate on the relevance of non-linear forecasts in the financial markets. To that end, this study forecasts the Yen-based Ringgit by using the Exponential Smooth Transition Autoregressive (ESTAR)... more
This paper endeavors to contribute to the debate on the relevance of non-linear forecasts in the financial markets. To that end, this study forecasts the Yen-based Ringgit by using the Exponential Smooth Transition Autoregressive (ESTAR) model. When formally assessed for forecast ...