The Impact of Income on Imported Grape Quality in Malaysia: Using Quantile Autoregressive Distributed Lag Model

This study analyzed the effect of income on the quality of imported grapes in Malaysia using annual data from 1991 to 2022. By using the Quantile Autoregressive Distributed Lag(ARDL) model, the effect of income on the quality of imported grapes was analyzed in consideration of long- and short-term as well as non-linear relationships. As a result of the analysis, there was a long-term equilibrium relationship between the quality of imported grapes, GDP per capita, exchange rate, and crude oil price. In both nonlinear and linear ARDL model results, income was analyzed to have positive effects on the quality of imported grapes in both the long and short-term. In addition, the long-term estimation results of Quantile ARDL showed that the difference in the effect of income on the quality of imported grapes according to the quantile was not significant, and the short-term estimation results showed that the positive effect was greater above the 70th quantile. The results of this study imply that the possibility of exports to Malaysia, a potential export destination for Korea, which is pursuing a diversification of grapes, is increasing due to the economic growth of Malaysia.