MODELLING WAGES IN THE SMALL OPEN ECONOMY: AN ERROR-CORRECTION MODEL OF NORWEGIAN MANUFACTURING WAGES†

2009 ◽  
Vol 51 (3) ◽  
pp. 239-258 ◽  
Author(s):  
Ragnar Nymoen
Keyword(s):  
Error Correction ◽  
Open Economy ◽  
Small Open Economy ◽  
Error Correction Model ◽  
Correction Model

scholarly journals IDENTIFIKASI DAMPAK LIBERALISASI KEUANGAN DALAM SMALL OPEN ECONOMY: STUDI KASUS DI INDONESIA

2018 ◽  
Vol 1 (1) ◽  
pp. 1-7
Author(s):  
Ryan Juminta Anward
Keyword(s):  
Error Correction ◽  
Open Economy ◽  
Vector Autoregression ◽  
Small Open Economy ◽  
Error Correction Model ◽  
Vector Error Correction Model ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error

Abstrak- Adanya pandangan bahwa liberalisasi keuangan berperan penting dalam mendorong pertumbuhan ekonomi menyebabkan banyak negara-negara berkembang melakukan serangkaian kebijakan liberalisasi di sektor keuangan. Penelitian ini bertujuan untuk mengidentifikasi secara empiris dampak liberalisasi keuangan terhadap pertumbuhan ekonomi dan variabel makro ekonomi lainnya di Indonesia. Penelitian ini mengembangkan model empiris melalui pengukuran liberalisasi keuangan secara de fakto dan de jure. Hasil estimasi model Vector Autoregression (VAR) dalam pendekatan de jure menunjukkan bahwa indeks liberalisasi keuangan secara statistik tidak berpengaruh siginifikan terhadap pertumbuhan ekonomi dan variabel makro lainnya (inflasi, nilai tukar dan suku bunga). Dalam pendekatan de facto, hasil pengujian kointegrasi menunjukkan adanya hubungan jangka panjang antara pertumbuhan ekonomi dan seluruh indikator yang digunakan sebagai proksi liberalisasi keuangan. Hasil estimasi pada pendekatan de facto melalui model Vector Error Corrrection Model (VECM) mengindikasikan bahwa liberalisasi keuangan memberikan efek negatif terhadap pertumbuhan ekonomi melalui peningkatan kredit perbankan terhadap sektor swasta. Secara keseluruhan hasil penelitian ini tidak dapat menemukan bukti kuat terkait adanya dampak positif liberalisasi keuangan terhadap pertumbuhan ekonomi dalam small open economy seperti di Indonesia. Kata kunci : liberalisasi keuangan, pertumbuhan ekonomi, small open economy, vector autoregression (VAR), vector error correction model (VECM)

Reserve Adequacies and the Determinants of Foreign Exchange Reserves – Empirical Analysis through the Vector Error Correction Model: The Case of Lebanon

2019 ◽  
Vol 15 (2) ◽  
Author(s):  
Kassim Dakhlallah
Keyword(s):  
Error Correction ◽  
Open Economy ◽  
Small Open Economy ◽  
Error Correction Model ◽  
Real Effective Exchange Rate ◽  
Vector Error Correction Model ◽  
Long Term Effects ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error

Abstract Investigating the causes and motives for reserves’ accumulation in a highly dollarized small open economy such as that of Lebanon is of extreme importance, especially since fluctuations in foreign reserves have been demonstrated to be a leading cause of economic and financial instability. For an emerging economy such as that of Lebanon, which is subject to internal and external shocks, the accumulation and holding of reserves signal, among other things, credibility and financial strength. Therefore, identifying the factors that determine the level of reserves in the long and short term is crucial for the stability of the entire economy. For an in-depth understanding of those factors, this study employs the vector error correction model (VECM), which helps distinguish between short- and long-term effects. The results indicate that currency substitution has the most significant impact on reserves in the short and long terms, while the trade balance and the real effective exchange rate have substantial effects but only in the long terms. The study also reveals that the reserves held by the central bank fulfil all the reserves’ adequacy criteria and are in alignment with the reserves’ adequacy ratios.

scholarly journals Pengujian Efek Fisher Internasional: Studi Kasus Indonesia Dan China

2018 ◽  
Vol 5 (1) ◽  
pp. 26
Author(s):  
Ernawati Nurul Hidayah ◽  
Z. Zainuri ◽  
Anifatul Hanim
Keyword(s):  
Exchange Rate ◽  
Error Correction ◽  
Open Economy ◽  
Error Correction Model ◽  
Fisher Effect ◽  
Short Term ◽  
Correction Model ◽  
Effect Theory ◽  
The Difference

The fluctuation of rupiah exchange rate caused by the application of open economy system especially with China in ACFTA international organization, which has good economy and influences in global can draw China as the worthy country in takin the policy through monetary variables. The purpose of this research is to know the short term and long term influence of the differences in Indonesia-China interest, the differences of Indonesia-China inflation, and Yuan exchange rate to rupiah exchange rate based on international fisher effect theory. This research focuses on quantitative analysis by using Error Correction Model (ECM) method. Short term ECM estimation shows that the relation between differences of interest, differences of inflation with rupiah exchange rate is not suitable with international fisher effect theory because is has positive and insignificant relation, yuan exchange rate with rupiah exchange rate is suitable with theory because is has negative. Then, the result of short term ECM estimation shows that there is a gap so the determination of rupiah exchange rate is dominated by Yuan exchange rate. The relation between the difference of interest and the difference of inflation is contrary with the theory and it is only Yuan exchange rate that has the relation with rupiah exchange rate and it is suitable with international fisher effect theory. Keywords: international fisher effect theory, rupiah exchange rate, interest, inflation, error correction model (ECM) analysis

Pengaruh Jangka Pendek Dan Jangka Panjang Variabel Makro Ekonomi Terhadap Ihsg Di Bursa Efek Indonesia Dengan Pendekatan Error Correction Model (ECM)

2019 ◽  
Vol 6 (1) ◽  
pp. 12-24
Author(s):  
Suryo Refli Ranto
Keyword(s):  
Error Correction ◽  
Error Correction Model ◽  
Correction Model

Penelitian ini bertujuan untuk menguji secara empiris pengaruh jangka pendek dan jangka panjang dari Inflasi, Jumlah Uang Berjalan, Kurs, Tingkat Bunga Bank Indonesia, Harga Minyak Dunia (WTI) dan Net Ekspor terhadap Indeks Harga Saham Gabungan (IHSG) dengan metode Error Correction Model (ECM) yang diolah dengan eviews 6.0. Selama periode pengamatan yaitu tahun 2000-2012 terjadi hubungan antara variabel makro dengan pergerakan IHSG di Bursa Efek Indonesia (BEI). Hasil uji ECM memperlihatkan Inflasi, kurs dan harga minyak dunia berpengaruh signifakan terhadap IHSG pada jangka pendek sedangkan pada jangka panjang variabel yang signifikan mempengaruhi IHSG adalah IHK, kurs, net ekspor dan harga minyak dunia.Kata kunci : IHSG, IHK, JUB, Kurs, tingkat Bunga Bank Indonesia (rSBI), Harga Minyak Dunia (WTI), Net Ekspor dan Error Correction Model (ECM) 

Corporate Taxes and Foreign Direct Investment: An Impact Analysis

2020 ◽  
Vol 5 (2) ◽  
pp. 28-43
Author(s):  
Onome Christopher Edo ◽  
Anthony Okafor ◽  
Akhigbodemhe Emmanuel Justice
Keyword(s):  
Foreign Direct Investment ◽  
Error Correction ◽  
Direct Investment ◽  
Impact Analysis ◽  
Negative Relationship ◽  
Value Added ◽  
Positive Association ◽  
Error Correction Model ◽  
Corporate Taxes ◽  
Correction Model

Objective – The purpose of this study is to investigate the effect of corporate taxes on the flow of Foreign Direct Investment (FDI) in Nigeria between 1983 and 2017. Methodology/Technique – This study adopts an ex-post facto research design. Secondary data was sourced from the World Bank Development Indicator, the Central Bank of Nigeria database, and the Federal Inland Revenue database. The research data was analyzed using the Error Correction Model (ECM). Findings – The coefficient of determination (R2) shows that approximately 77% of systematic changes in FDI are attributed to the combined effect of all of the explanatory variables used in this study. Specifically, the study concludes that Company Income Tax, Value Added Tax, and Custom and Excise Duties have a significant but negative relationship with FDI. In contrast, Tertiary Education Tax has a positive association with FDI. Further, Exchange Rate has a negative but significant relationship with FDI, Inflation had an insignificant but positive association with FDI, and GDP growth Rate and Trade Openness demonstrate a positive and significant association with FDI. Novelty – The findings of this study are distinguishable from previous studies, as it uncovers new evidence that higher Education Tax Rates influences FDI and emerging evidence on the effect of non-tax variables on FDI inflow. Type of Paper: Empirical. JEL Classification: E22, F21, H2, P33. Keywords: Corporate Taxes; Foreign Direct Investment; Error Correction Model; Nigeria; Non-Tax Variables. Reference to this paper should be made as follows: Edo, O.C; Okafor, A; Justice, A.E. 2020. Corporate Taxes and Foreign Direct Investment: An Impact Analysis, Acc. Fin. Review 5 (2): 28 – 43. https://doi.org/10.35609/afr.2020.5.2(1)

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