Nexus Between Electrical and Electronic Export Values With Exchange Rate Among Southeast Asian Countries: An Evidence From Finite Mixture Model

• Main Authors: Khek, Shi Ling, Phoong, Seuk Yen
• Format: text
• Published: Animo Repository 2024
• Subjects: finite mixture model; Bayesian analysis; time series data; Economics
• Online Access: https://animorepository.dlsu.edu.ph/ber/vol34/iss1/26; https://animorepository.dlsu.edu.ph/context/ber/article/1025/viewcontent/Poong_071524.pdf
• Institution: De La Salle University

In recent years, the electrical and electronic sector has monopolized the world’s top three export products. Asian developing countries are the most influential countries exporting electrical and electronic products. Nevertheless, many external issues, such as competitors and unexpected incidents, specifically the coronavirus pandemic in 2019, affected international trading performance. This study aims to model the export price of electrical and electronic with exchange rates among Malaysia, Thailand, and the Philippines by fitting the Bayesian approach to the normal mixture model. Results depicted a negative effect between electrical and electronic export value and exchange rate for sampled countries. Meanwhile, brand new probability density functions are generated for future forecasting purposes. The input of this study can guide investors and traders in making a successful investment by understanding the factors that affect the performance of trade exports. Lastly, this study greatly impacts the adequacy of policies against several risks, which helps sustain economic stability.