ECONOMIC GROWTH AND EXCHANGE RATE: A NEW ROAD AHEAD FOR INDONESIA

2015 ◽  
Vol 60 (02) ◽  
pp. 1550010
Author(s):  
CHONG YAH LIM

This short article advocates the further development of Indonesia through an export-oriented industrialization policy. It opines that it is only through this policy that the perennial depreciation of the Indonesian exchange rate, including through capital flight, can be stopped. The article also advocates a twin-engine approach, with the State be responsible for the efficient supply of public goods, and the private sector, including the active participation of foreign investment, be encouraged, actively, for the supply of private goods, with concentration on export-oriented manufactured goods. The social and educational system will have to give support to this fundamental policy shift.

2015 ◽  
Vol 7 (2) ◽  
pp. 66 ◽  
Author(s):  
Fayyaz Ahmad ◽  
Muhammad Umar Draz ◽  
Su-chang Yang

<p>In emerging markets, a number of factors like GDP growth, market efficiency and higher earnings expectations play a vital role in attracting stable and smooth foreign investment. This work is intended to explore the determinants of FPI in China and compare the results with determinants of FPI in India explored by Garg and Dua (2014). We have applied multiple-regression model for ten years’ data ranging from 2001 to 2010. The results indicate that external debts are the most significant determinant of FPI for China. We concur with Garg and Dua (2014) that GDP growth, FDI and exchange rate are among the significant determinants of FPI. Our findings suggest that China needs to sustain its economic growth in order to attract more FPI.</p>


2019 ◽  
Vol 7 (1) ◽  
pp. 39-50
Author(s):  
Tuty Cahya Azizah ◽  
Haryadi Haryadi ◽  
Etik Umiyati

The purpose of this study is to analyze the development of exchange rates, net exports, FDI, and Indonesia's economic growth in 1998-2017 and to analyze the effect of exchange rates, net exports, and foreign investment (FDI) on Indonesia's economic growth in 1998-2017. used in this study is secondary data sourced from the Central Statistics Agency (BPS). The analytical tool used in this study is descriptive and quantitative analysis, namely by multiple linear regression. The research method used in this study is the "Ordinary Least Square (Ordinary Least Square) method. OLS). The test results using OLS show that together the variables of the exchange rate, net exports, and FDI have a significant effect on Indonesia's economic growth. While partially, the exchange rate has a positive and significant effect on Indonesia's economic growth. Meanwhile, net exports have a positive and significant impact on Indonesia's economic growth. Meanwhile, FDI has a positive and significant impact on Indonesia's economic growth. Keywords: Exchange rate, Net exports, Foreign investment, Economic growth.  


2020 ◽  
Vol 29 (4) ◽  
pp. 796-804
Author(s):  
Serhii M. Shevchuk

The article embraces the thorough analysis of the social-economic space of Poltava Region via administrative-areal reform as well as united areal communities’ formation. Given research has its base in the methodology of spatial analysis of areal systems with different levels of their organization. As a result, the very essence of social-economic growth poles’ forming process was revealed in succession. The fact this growth poles’ formation on depressive territories tends to be the ultimate way to improve their social and economic status has been logically ascertained. The typification of Poltava Region unitedareal communities’ centres as social-economic growth poles was held according to such criteria as their formation and impact extension over the surrounding territory. Actually, the forming peculiarities and the further development of growth poles on the regional level have an urgent necessity under active administrative-areal reform. Therefore, the prerequisites and the forming factors of Poltava Region growth poles were clearly defined. As a result, all the groups’ types of regional social-economic centres, which are already formed social-economic development poles (Poltava, Kremenchuh), development poles under formation (Horishni Plavni, Myrhorod, Lubny, and Hadiach), centres with some prerequisites to transform into growth poles (Karlivka, Pyriatyn, Lokhvytsa, Zinkiv, Hlobyne, and Kobeliaky), and centres with insufficient capacity to transform into growth poles (Velyka Bahachka, Kozelshchyna, Mashivka,Novi Sanzhary, Opishnia, Reshetylivka, Semenivka, Chornukhy, and Shyshaky), have been classified correctly. Those centres that have low formation level, being unable to transform into growth pole (Bilotserkivka, Butenky, Velyki Sorochyntsi, Drabynivka, Zavorsklo, Zasullia, Klepachi, Kolomatske, Krasna Luka, Lanna, Mala Pereshchepyna, Machukhy, Mykhailivka, Nedoharky, Nekhvoroshcha, Novoavramivka, Novoznamianka, Obolon, Omelnyk, Petrivka-Romenska, Pishchane, Pokrovska Bahachka, Pryshyb, Rokyta, Rudenkivka, Sencha, Serhiivka, Skorokhodove, Tereshky, Shcherbani), consolidate into the specific pattern. The results of the research aim to provide the primary, administrative, and social-economic UAC centers’ functions. As a matter of fact, the fundamental prerequisite of the Poltava Region’ area sustainable social-economic development can be efficiently contributed by already formed poles. They are, in fact, able to maintain the conservation of regional ecosystems, the areas’ innovative development achievements, the overcome of poverty, the preservation of national values and traditions, etc. Only the transformation of the described centers or acquiring them the nuclei traits of social-economic development poles should ensure the balanced areal development of the region.


2022 ◽  
Vol 19 ◽  
pp. 150-160
Author(s):  
Indra Suhendra ◽  
Navik Istikomah ◽  
Cep Jandi Anwar

This paper examines how capital flight, loan interest rates, inflation, exchange rates and economic growth influence foreign direct investment in the ASEAN-8 countries. We apply fixed effect estimation to panel data for data belonging to eight countries from the period 1994 to 2018. The results show that capital flight and economic growth have a positive and significant effect on foreign direct investment. An increase in capital flight, capital retain from sources of funds which greater than the use of funds, has encouraged foreign direct investment to increase. Furthermore, increased economic growth has stimulated foreign direct investment. We find that an increase in loan interest rate (SIBOR), inflation and depreciation of the exchange rate triggers a significant decline in foreign direct investment. This finding implies that capital retention from capital flight and economic growth are the main factors that create an increase in foreign direct investment in the ASEAN-8 countries. Meanwhile, loan interest rates (SIBOR), inflation and depreciation of the exchange rate are the risk factors that investors need to consider when investing in those particular countries. This paper is useful for policy makers in the ASEAN-8 countries to consider these five variables, as the important factors that significantly influence foreign direct investment in the ASEAN-8 countries.


2004 ◽  
pp. 95-111
Author(s):  
T. Zolotoukhina

The problem of interaction between Russian currency appreciation and positive dynamics of macroeconomic indicators is studied. Main economic factors of ruble appreciation are analyzed. Consequences of the Russian Central Bank's policy directed to oppose ruble appreciation and problems in financial area due to the increase of money supply through the exchange market are considered. Influence of exchange rate appreciation on economic growth, inflation, export, import, capital flows are discussed. It is concluded that Russian ruble appreciation stimulates an increase in efficiency of the Russian economy.


2004 ◽  
pp. 4-27 ◽  
Author(s):  
V. Lisin

The problem of interaction between Russian currency appreciation and positive dynamics of macroeconomic indicators is studied. Main economic factors of ruble appreciation are analyzed. Consequences of the Russian Central Bank's policy directed to oppose ruble appreciation and problems in financial area due to the increase of money supply through the exchange market are considered. Influence of exchange rate appreciation on economic growth, inflation, export, import, capital flows are discussed. It is concluded that Russian ruble appreciation stimulates an increase in efficiency of the Russian economy.


2018 ◽  
Vol 33 (2) ◽  
Author(s):  
Femi Oluyeju ◽  
Kuda Tshiamo

This article seeks to interrogate the advantages and disadvantages of beneficiation law for Botswana’s mining industry and its implications for foreign investment protection. Furthermore, it argues that the enactment of beneficiation law could stimulate economic growth and development in Botswana. On a proper analysis of the potential of beneficiation law it seems plain that it may facilitate the integration, of among others, the cutting and polishing segments through the backward and forward linkages in the entire diamond value chain to move Botswana diamond industry a step further as a new and emerging jewellery manufacturing and retail center in order to derive maximum returns from the rough diamond production. Quite clearly, cutting and polishing of diamonds in Botswana is bound to promote employment which in turn will promote demand for goods and services that would have a positive impact on economic growth in Botswana.  The paper concludes that on a balance, the opportunities accruable from the enactment of this law far outweigh the downsides and will not in any way scare investors away as some have perceived it.


1991 ◽  
Vol 30 (3) ◽  
pp. 313-317
Author(s):  
Ziaul Haque

Deveiopment planning in India, as in other developing countries, has generally been aimed at fostering an industrially-oriented policy as the engine of economic growth. This one-sided economic development, which results in capital formation, creation of urban elites, and underprivileged social classes of a modern society, has led to distortions in the social structure as a whole. On the contrary, as a result of this uneven economic development, which is narrowly measured in terms of economic growth and capital formation, the fruits of development have gone to the people according to their economic power and position in the social structure: those occupying higher positions benefiting much more than those occupying the lower ones. Thus, development planning has tended to increase inequalities and has sharpened divisive tendencies. Victor S. D'Souza, an eminent Indian sociologist, utilizing the Indian census data of 1961, 1971, and 1981, examines the problem of structural inequality with particular reference to the Indian Scheduled Castes and Scheduled Tribes - the two most underprivileged sections of the present Indian society which, according to the census of 1981, comprised 15.75 percent and 7.76 percent of India's population respectively. Theoretically, he takes the concept of development in a broad sense as related to the self-fulfIlment of the individual. The transformation of the unjust social structure, the levelling down of glaring economic and social inequalities, and the concern for the development of the underprivileged are for the author the basic elements of a planned development. This is the theoretical perspective of the first chapter, "Development Planning and Social Transformation".


2015 ◽  
Vol 54 (4I-II) ◽  
pp. 997-1010
Author(s):  
Muhammad Mazhar Iqbal

Zakat is an annual religious levy that is collected from rich Muslims and its proceeds are disbursed among poor people of the society. It has many spiritual and social merits. For example, it purifies the hearts of zakat-givers as they give away a part of their wealth, one of the most precious things in their lives, seeking the pleasure of God without requiring any worldly gains whatsoever. It bridges the social gap between „haves‟ and „have-nots.‟ This study analyses, however, only economic consequences of Zakat for economic growth. They cannot be appreciated duly unless one understands the following concepts of modern economics; various theories of consumption, aggregate demand, stagnation thesis, consumption puzzle, marginal productivity of capital and Kuznets curve.


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