scholarly journals ANALYSIS OF THE IMPACT OF MACROECONOMIC POLICIES ON TEXTILE INDUSTRY AND ITS PRODUCTS IN INDONESIA

2011 ◽  
Vol 13 (4) ◽  
pp. 357-390 ◽  
Author(s):  
Iwan Hermawan
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Wage Rate ◽  
Textile Industry ◽  
World Market ◽  
World Cotton ◽  
Macroeconomic Policies ◽  
Factors Affecting ◽  
Cotton Price ◽  
The Impact

Textile and textile’s product play an important role in the Indonesian economy. During the last five years, however, share of these industries and commodities to gross domestic product tend to decrease. The objectives of this study are to analyze factors affecting Indonesian textile and textile’s product, and the prospect of Indonesian textile and textile’s product in the future. Results of the study show that domestic textile production was affected by world cotton price and wage rate, while the domestic garment production was affected by wage rate in the garment sector. Indonesia’s textile export to world market was influenced by domestic textile price, and Indonesia’s export garment was influenced by exchange rate (Rp/US$). Indonesian textile demand was affected by wage rate and domestic garment demand was affected by income per capita of Indonesia. In general, the prospect of Indonesian textile and textile’s product seems not too good. In fact, Indonesian textile and textile’s product had depended on high import cotton, investment, and exchange rate. So why, economy policies are still needed to accelerate Indonesian textile and textile’s product developmentJEL Classification: C53, E60, F43, and F4.Keywords: export, open economy, forecasting, simulation, textile and textile’s product.

scholarly journals ANALISIS DAMPAK KEBIJAKAN MAKROEKONOMI TERHADAP PERKEMBANGAN INDUSTRI TEKSTIL DAN PRODUK TEKSTIL INDONESIA

2011 ◽  
Vol 13 (4) ◽  
Author(s):  
Iwan Hermawan
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Open Economy ◽  
Wage Rate ◽  
World Market ◽  
World Cotton ◽  
Textile Production ◽  
Factors Affecting ◽  
Cotton Price ◽  
Per Capita

Textile and textile’s product play an important role in the Indonesian economy. During the last five years, however, share of these industries and commodities to gross domestic product tend to decrease. The objectives of this study are to analyze factors affecting Indonesian textile and textile’s product, and the prospect of Indonesian textile and textile’s product in the future. Results of the study show that domestic textile production was affected by world cotton price and wage rate, while the domestic garment production was affected by wage rate in the garment sector. Indonesia’s textile export to world market was influenced by domestic textile price, and Indonesia’s export garment was influenced by exchange rate (Rp/US$). Indonesian textile demand was affected by wage rate and domestic garment demand was affected by income per capita of Indonesia. In general, the prospect of Indonesian textile and textile’s product seems not too good. In fact, Indonesian textile and textile’s product had depended on high import cotton, investment, and exchange rate. So why, economy policies are still needed to accelerate Indonesian textile and textile’s product development.JEL Classification: C53, E60, F43, and F4.Keywords: export, open economy, forecasting, simulation, textile and textile’s product.

Impact of external currency exposures on macroeconomic policies

2020 ◽  
pp. 23-40
Author(s):  
I. V. Prilepskiy
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Positive Impact ◽  
Exchange Rate Regime ◽  
Macroeconomic Policies ◽  
Panel Regressions ◽  
Financial Account ◽  
Currency Exposure ◽  
Cross Country ◽  
The Impact

Based on cross-country panel regressions, the paper analyzes the impact of external currency exposures on monetary policy, exchange rate regime and capital controls. It is determined that positive net external position (which, e.g., is the case for Russia) is associated with a higher degree of monetary policy autonomy, i.e. the national key interest rate is less responsive to Fed/ECB policy and exchange rate fluctuations. Therefore, the risks of cross-country synchronization of financial cycles are reduced, while central banks are able to place a larger emphasis on their price stability mandates. Significant positive impact of net external currency exposure on exchange rate flexibility and financial account liberalization is only found in the context of static models. This is probably due to the two-way links between incentives for external assets/liabilities accumulation and these macroeconomic policy tools.

The long-run stability of a small, open economy under crawling peg regime

2002 ◽  
Vol 52 (1) ◽  
pp. 57-78
Author(s):  
S. Çiftçioğlu
Keyword(s):  
Exchange Rate ◽  
Open Economy ◽  
Risk Premium ◽  
Small Open Economy ◽  
Exchange Rate Policy ◽  
Price Stability ◽  
Output Stability ◽  
Long Run ◽  
The Exchange Rate ◽  
The Impact

The paper analyses the long-run (steady-state) output and price stability of a small, open economy which adopts a “crawling-peg” type of exchange-rate regime in the presence of various kinds of random shocks. Analytical and simulation results suggest that with the exception of money demand shocks, an exchange rate policy which involves a relatively higher rate of indexation of the exchange rate to price level is likely to lead to the worsening of price stability for all types of shocks. On the other hand, the impact of adopting such a policy on output stability depends on the type of the shock; for policy shocks to the exchange rate and shocks to output demand, output stability is worsened whereas for the shocks to risk premium of domestic assets, supply price of domestic output and the wage rate, better output stability is achieved in the long run.

An Analysis of Growth and Association between Labour Productivity and Wages in Indian Textile Industry

2018 ◽  
Vol 43 (1-2) ◽  
pp. 78-87 ◽  
Author(s):  
Vanita Ahlawat ◽  
Renu
Keyword(s):  
Real Wage ◽  
Wage Rate ◽  
Textile Industry ◽  
Labour Productivity ◽  
Value Added ◽  
Gender Disparity ◽  
Wage Determination ◽  
Textile Manufacturing ◽  
Wage Rates ◽  
The Impact

India is one of the largest textile producers in the world. Textile industry is huge employment-providing industry after agriculture in India. The present article is an attempt to analyse first, the growth and composition of employees engaged in textile industry in India. Second, to find the growth and relation between employments, man-days employed, wages and net value added (NVA) by textile industry in India. And lastly, the impact of labour productivity in wage determination is also analysed. The results suggested that there is huge gender disparity in employment, that is, women are very few in comparison to men workers. Overall employment in textile has an increasing trend among both categories of textile industry. Further, spinning, weaving and finishing of textile manufacturing is growing faster than manufacturing of other textiles. Employment in textile industry has a positive and significant correlation with real wage rates in both categories of industries. This indicates that increase in real wage rate causes enhancement in employment in textile manufacturing. And further results suggest that labour productivity is a significant determinant of wage rate of textile employees.

Modelling the Open Economy, Devaluation, and the Exchange Rate in Developing Countries

2020 ◽  
pp. 277-306
Author(s):  
Giovanni Andrea Cornia
Keyword(s):  
Developing Countries ◽  
Exchange Rate ◽  
Open Economy ◽  
Exchange Rate Volatility ◽  
Empirical Literature ◽  
Economy Model ◽  
Poor Countries ◽  
Pros And Cons ◽  
External Sector ◽  
The Impact

The chapter first examines the limitations of conventional open-economy macro models, such as the Mundell–Fleming model, when they are applied to developing countries. It discusses the Swan–Salter model and the three-sector dependent-economy model that better capture the reality of the external sector in poor countries. It then discusses the impact of devaluation under conditions of closed and open capital accounts and shows the limitation of a devaluation unaccompanied by structural measures in little diversified poor economies and in economies with large dollar liabilities. In this regard, it examines the results of the empirical literature on the contractionary or expansionary effect of devaluation in developing countries. Finally, it reviews the pros and cons of alternative exchange rate regimes, the impossible trinity theorem, and measures to control exchange rate volatility through capital controls.

scholarly journals PERANAN KEBIJAKAN MONETER DALAM MENJAGA STABILITAS PEREKONOMIAN INDONESIA SEBAGAI RESPON TERHADAP FLUKTUASI PEREKONOMIAN DUNIA

2007 ◽  
Vol 9 (2) ◽  
pp. 145-177
Author(s):  
M. Maulana Al Arif ◽  
Achmad Tohari
Keyword(s):  
Monetary Policy ◽  
Exchange Rate ◽  
Interest Rate ◽  
Open Economy ◽  
Small Open Economy ◽  
Monthly Data ◽  
Vector Autoregressive ◽  
The World ◽  
The Exchange Rate ◽  
The Impact

This paper analyzes the impact of the inflation and the world interest rate on the Indonesian economy and the effectiveness of the Indonesian central bank policy to adopt the domestic macroeconomic fluctuation.Assuming Indonesia as a small-open economy, the Stuctural Vector Autoregressive Model is utilized on the monthly data during the periode of 1999: 1 – 2004: 12 covering the main domestic macroeconomic indicator (output, price, money supply, interest rate and the exchange rate) and the world oil price and world interest rate as the disturbance source.The analysis provides 2 main results, first, the international variables do have impacts on the domestic variables fluctuation, implying the fragility of the domestic economy due to the external shock, second, the monetary policy is effective on supporting the economic growth and stabilizing the price level. However, the Bank Indonesia policy to stabilize the international shock via the exchange rate channel, contributes to a higher impact of the international shock on domestic interest rate.Keywords: monetary policy, business cycle, SVARJEL Classification: E52, E32, C32, F41

scholarly journals Methods of assessing the impact of dollarization on economic development

VUZF Review ◽  
2021 ◽  
Vol 6 (1) ◽  
pp. 12-25
Author(s):  
Оlena Chukurna
Keyword(s):  
Economic Development ◽  
Exchange Rate ◽  
Exchange Rates ◽  
Arima Model ◽  
Machine Building ◽  
Building Industry ◽  
Factors Affecting ◽  
Domestic Prices ◽  
The Exchange Rate ◽  
The Impact

The article considers the transformation of the money function as a consequence of the impact of dollarization on the economic development of countries in the global context. The economic substantiation of the process of dollarization of the economy, which is connected with the function of money, is proved. The influence of dollarization on the macro – and macro levels of the economy is substantiated. Approaches to methods of estimating dollarization on the economic development of the country in the context of globalization are proposed. The article defines the degree of dependence of the machine-building industry of Ukraine on the processes of dollarization of the world economy through the use of the effect of transferring the dynamics of changes in exchange rates to the price dynamics in the machine-building industry. Using the ARIMA model, the effect of transferring the exchange rate to prices for mechanical engineering products is proved. The expediency of using the ARIMA forecasting model to predict the further spread of the effect of the change in exchange rates on prices. An approach is proposed to determine the sensitivity of domestic prices for the products of engineering enterprises to changes in the exchange rate through modified elasticity coefficients. It was determined factors affecting the size of the effect of transfer of the exchange rate on domestic prices for the products of machine-building enterprises.

scholarly journals The Impact of Tax, Exchange Rate, Tunneling Incentive and Firm Size on Transfer Pricing (Empirical Study of Manufacturing Companies Listed on the Indonesian Stock Exchange for Years2014-2018)

2019 ◽  
Vol 1 (2) ◽  
pp. 149-166
Author(s):  
Felicia Vanessa Wijaya ◽  
Luky Patricia Widianingsih
Keyword(s):  
Exchange Rate ◽  
Firm Size ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Secondary Data ◽  
Annual Reports ◽  
Manufacturing Companies ◽  
Factors Affecting ◽  
Analysis Technique ◽  
The Impact

Abstract: In the era of globalization, companies are developing into multinational companies that establish branches or subsidiaries in various countries. This globalization has given an impact to increase international transaction. These transactions could lead to transactions with related parties that shows an indication of transfer pricing. Along with the development of globalization, factors affecting transfer pricing are not only derived from taxes, but also from other factors. The purpose of this research is to examine the effect of tax, exchange rate, tunneling incentive, and firm size on transfer pricing. This research used secondary data in the form of annual reports published on the Indonesia Stock Exchange. Population of this research was manufacturing companies for years 2014-2018 and by purposive sampling method, a sample of 19 manufacturing companies was obtained. Analysis technique used on this research was a multiple linear regression using SPSS 23 application. The result shows that tax, tunneling incentive, firm size have significant effect on transfer pricing, while exchange rate does not take any effect on transfer pricing. Adjusted R2 determination coefficient of 32,8% shows transfer pricing is affected by tax, exchange rate, tunneling incentive, and firm size, while remaining 67,2% is affected by other variables outside research model. Keywords: Transfer Pricing; Tax; Exchange Rate; Tunneling Incentive; Firm Size.

The Impact of Exchange Rate on Tourism Industry

2015 ◽  
pp. 107-118
Author(s):  
Meryem Samirkaş ◽  
Mustafa Can Samirkaş
Keyword(s):  
Exchange Rate ◽  
Current Account Deficit ◽  
Tourism Industry ◽  
Factors Affecting ◽  
Currency Exchange ◽  
Currency Exchange Rates ◽  
Tourism Sector ◽  
Causality Tests ◽  
The Impact ◽  
The Relationship

Tourism sector that is increasingly important in the world economy, developing rapidly in Turkey and provides a serious contributions to country's economy because Turkey consistently has a current account deficit, tourism is an important source of income. There are many factors affecting tourism; it is clear that the industry can be affected by changes in macroeconomic variables, just like any other economic focus. In this context, it is possible that the foreign exchange rate and changes in the value of various currencies can affect tourism, especially with regards to the demands of the tourists themselves. By using the Johansen cointegration and Granger causality tests, this chapter focused on identifying the relationship between currency exchange rates and the demand for tourism in Turkey.

SOURCES OF MACROECONOMIC FLUCTUATIONS IN BRUNEI DARUSSALAM

2018 ◽  
Vol 63 (05) ◽  
pp. 1285-1306
Author(s):  
WEE CHIAN KOH
Keyword(s):  
Exchange Rate ◽  
Real Exchange Rate ◽  
Open Economy ◽  
Capital Investment ◽  
Exchange Rate Volatility ◽  
Macroeconomic Fluctuations ◽  
Monetary Shocks ◽  
Brunei Darussalam ◽  
Long Run ◽  
The Impact

This paper investigates the sources of macroeconomic fluctuations in Brunei Darussalam from 2003Q1 to 2014Q3 using a structural vector autoregression (SVAR) model. Shocks are identified by imposing block exogeneity and long-run restrictions motivated by an open economy model that includes oil prices. The results show that oil price shocks account for only a small proportion of output fluctuations while productivity shocks have the largest share. Real exchange rate movements are largely driven by demand shocks while monetary shocks explain most of the variability in prices. Economic policies should focus on productivity improvement and capital investment to increase output in the long run, and the conduct of fiscal policy should take into account the impact on real exchange rate volatility.

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