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Econometric Analysis on Malaysia-China and Malaysia-India Bilateral Trade Sustainability

Evan Lau, Swee-Ling Oh, Ling-Na Wong


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 much so as to enhance trade flows between these trading partners.


Bilateral trade sustainability, Malaysia, China, India.

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