scholarly journals Analysis of Determinants of Development Imports in Indonesia

2021 ◽  
Vol 4 (2) ◽  
pp. 2031-2042
Author(s):  
Malem Ateta Br. Purba ◽  
Muhammad Fitri Rahmadana ◽  
Fitrawaty Fitrawaty
Keyword(s):  
Gross Domestic Product ◽  
Foreign Exchange ◽  
Domestic Product ◽  
Foreign Exchange Reserves ◽  
Correction Model ◽  
Foreign Products ◽  
The People ◽  
Long Run ◽  
The Government ◽  
Domestic Products

Indonesia is known as a developing country which industrial production has not been sustainable to the local demand. This is reflected in Indonesia's dependence on other countries in terms of consumer goods, raw and auxiliary materials as well as capital goods. Indonesia carries out import activities because most domestic products have not been able to compete with foreign products, and there is a sense of grandeur for the people when they are able to buy goods from abroad. The purpose of this study is to analyze the effect of gross domestic product (GDP), foreign exchange reserves, exchange rates and inflation on imports in Indonesia in 2000 - 2019. The method of analysis in this study uses the Error Correction Model (ECM). The estimation results show that in the short term, the variable gross domestic product (GDP), foreign exchange reserves and inflation have a positive and significant effect on imports in Indonesia, while in the long run, all variables have a significant and significant effect on imports in Indonesia. In this case, the support of the government and producers by providing good quality production will greatly assist in the development of the domestic industry, so that the Indonesian people turn to domestic products again.

scholarly journals The Influence of Sharia Capital Market, Sharia Bonds (Sukuk), and BI Rate on Gross Domestic Products (GDP) in Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 149-162
Author(s):  
Gebi Gita Marsi ◽  
Dyah Titis Kusuma Wardani
Keyword(s):  
Gross Domestic Product ◽  
Mutual Funds ◽  
Impulse Response Function ◽  
Domestic Product ◽  
Short Term ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Domestic Products

This study aims to determine what affect GDP (Gross Domestic Product) in constant Indonesian prices. The dependent variable used is GDP (Gross Domestic Product), and the independent variables are Islamic stocks, Islamic mutual funds, Islamic bonds (Sukuk), and the BI rate. The data used in this study are monthly during the period 2016: 1-2018: 12 sourced from OJK, BI, and Ministry of Home Affairs. The estimation tool used in this study is the Vector Error Correction Model (VECM) using E-views 7.0. Estimation results show that in the short term, the GDP variable (Gross Domestic Product) itself, Islamic stocks, BI rate, and Islamic mutual funds significantly affect GDP (Gross Domestic Product). In the long run, the estimation results show that sharia stock variables and sharia mutual funds have a significant effect on GDP (Gross Domestic Product). While the sharia bond variable (Sukuk) and the BI rate do not significantly affect GDP (Gross Domestic Product). VECM estimation results in this study also produce important Says, namely IRF (Impulse Response Function) and VDC (Variance Decomposition).

The Causal Links Between Foreign Direct Investment And Economic Growth In Pakistan

2012 ◽  
Vol 6 ◽  
Author(s):  
Najid Ahmad ◽  
Muhammad Farhat Hayat ◽  
Muhammad Luqman ◽  
Shafqat Ullah
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Domestic Product ◽  
Correction Model ◽  
Economic Progress ◽  
Long Run ◽  
Domestic Capital ◽  
The Relationship

This paper investigates the relationship between foreign direct investment and economic growth in Pakistan. The co-integration and error correction model is used to show the relationship between foreign direct investment and gross domestic product in Pakistan. Gross domestic product is taken as dependent variable while foreign direct investment, labor force and domestic capital as independent variables. The results suggest that there is a positive relation between foreign direct investment and gross domestic product in short as well as long run. If we want to make economic progress then there is a need to invite foreign investors because foreign direct investment increases GDP that is economic growth.

scholarly journals Revenue Productivity of the Tax System in Namibia: Tax Buoyancy Estimation Approach

2019 ◽  
Vol 11 (2(J)) ◽  
pp. 112-119
Author(s):  
A Shikongo ◽  
A Shikongo ◽  
O Kakujaha-Matundu ◽  
T Kaulihowa
Keyword(s):  
Gross Domestic Product ◽  
National Income ◽  
Domestic Product ◽  
Tax Revenue ◽  
Economic Activities ◽  
Tax System ◽  
Correction Model ◽  
Tax Rate ◽  
Revenue Collection ◽  
The Government

Buoyancy refers to how tax revenue responds to a gross domestic product without correcting for discretionary alterations in the tax system. The paper assessed the buoyancy of Namibia’s overall tax system in an attempt to measure the response of the tax system in entirety because of fluctuations in the national income and/or the deliberate act by the government to increase tax rate, reviewed tax code and tax machinery etc. The study employed the Engle-Granger approach to the error correction model to estimate the tax buoyancy for the period 2001 to 2014. The empirical findings from the study revealed that overall the Namibian tax system is income inelastic and not buoyant. This is confirmed by a low and negative value of 0.036 which is less than unit. Thus, the economy is not generating sufficient revenue both through discretionary tax measure and through the expansion in the economic activities. Therefore, the government need to introduce measures that will allow for more tax revenue collection to have a stable revenue base. This also means the government need to keep track of tax mobilization with growth in the gross domestic product as well as to ascertain taxes that are productive.

scholarly journals Effect of Price Determinants on World Cocoa Prices for Over the Last Three Decades: Error Correction Model (ECM) Approach

2013 ◽  
Vol 29 (3) ◽  
Author(s):  
Lya Aklimawati ◽  
Teguh Wahyudi
Keyword(s):  
Exchange Rate ◽  
Gross Domestic Product ◽  
Error Correction ◽  
Error Correction Model ◽  
Domestic Product ◽  
Short Term ◽  
Correction Model ◽  
Significance Level ◽  
Long Run ◽  
Price Determinants

High  volatility  cocoa  price  movement  is  consequenced  by  imbalancing between power demand and power supply in commodity market. World economy expectation and market  liberalization would lead to instability on cocoa prices in  the  international  commerce.  Dynamic  prices  moving  erratically  influence the benefit  of market players, particularly  producers. The aim of this research is  (1)  to  estimate  the  empirical  cocoa  prices  model  for  responding  market dynamics and (2) analyze short-term and long-term effect of price determinants variables  on cocoa prices.  This research  was  carried out by  analyzing  annualdata from 1980 to 2011, based on secondary data. Error correction mechanism (ECM)  approach was  used  to  estimate the  econometric  model  of  cocoa  price.The  estimation  results  indicated  that  cocoa  price  was  significantly  affected  by exchange rate IDR-USD, world gross domestic product,  world inflation, worldcocoa production, world cocoa consumption, world cocoa stock and Robusta prices at varied significance level from 1 - 10%. All of these variables have a long run equilibrium relationship. In long run effect, world gross domestic product, world  cocoa  consumption  and  world  cocoa  stock  were  elastic  (E  >1),  while other  variables  were  inelastic  (E  <1).  Variables  that  affecting  cocoa  pricesin  short  run  equilibrium  were  exchange  rate  IDR-USD,  world  gross  domestic product,  world  inflation,  world  cocoa  consumption  and  world  cocoa  stock. The  analysis  results  showed  that  world  gross  domestic  product,  world  cocoa consumption  and  world  cocoa  stock  were  elastic  (E  >1)  to  cocoa  prices  in short-term.  Whereas,  the  response  of  cocoa  prices  was  inelastic  to  change  of exchange rate IDR-USD and world inflation.Key words: Price determinants, cocoa, Error Correction Model, demand, supply, stock

scholarly journals CAUSALITY BETWEEN GROSS DOMESTIC PRODUCT, EXPORTS, IMPORTS, FOREIGN EXCHANGE RESERVES, AND FOREIGN DEBT IN INDONESIA

2020 ◽  
Vol 5 (2) ◽  
pp. 107
Author(s):  
Adya Utami Syukri
Keyword(s):  
Gross Domestic Product ◽  
Granger Causality ◽  
Foreign Exchange ◽  
Positive Response ◽  
Foreign Debt ◽  
Domestic Product ◽  
Test Results ◽  
Foreign Exchange Reserves ◽  
Integration Test ◽  
Adf Test

This research aims to determine the relationship between gross domestic product, exports, imports, foreign exchange reserves, and foreign debt in Indonesia from 1978 – 2018. As a developed country, Indonesia must know the interrelatedness between the GDP and the variable in the international balance of payment to move the economy well. This research using the Vector Autoregression (VAR) method that includes ADF Test, Granger Causality, Johanssen Co-integration, Vector Error Correction Model (VECM), and forecasting with Impulse Response Function (IRF) and Variance Decomposition (VD). From the Granger causality test results that have been carried out among the five variables, it is concluded that there is no causality relationship, but there are six one-way relationships. Simultaneously, the cointegration test from the Johanssen Co-Integration test results in the five variables tested. Forecasting for the next ten years through the IRF and VD tests shows that GDP positively responds to foreign debt and exports. Exports provide a positive response to GDP and imports. Imports give a positive response to exports, GDP, and foreign exchange reserves. At the same time, foreign debt gives a positive reaction to GDP and imports. Then foreign exchange reserves provide a positive response to exports and foreign debt. The government needs to allocate funds from foreign debt to the export sectors to increase GDP. Keywords: Causality, VECM, Gross Domestic Product, Exports, Foreign Debt Java IndustryJEL Classification: F14,  F41, C01

scholarly journals Determinants of Pakistan’s Exports: An Econometric Analysis

2018 ◽  
Vol 21 (3) ◽  
pp. 95-108
Author(s):  
Arshad Ullah Jadoon ◽  
Yangda Guang ◽  
Anwar Ahmad ◽  
Sajad Ali
Keyword(s):  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Direct Investment ◽  
Time Series Data ◽  
Domestic Product ◽  
Series Data ◽  
Employment Level ◽  
Consumption Expenditures ◽  
Long Run ◽  
The Government

The research investigated the determinants of Pakistan’s exports by using time series data from 1990–2016. Certain econometric tests were also applied to check cointegration among variables. A unit root test was used to check the stationarity of selected variables. After the stationarity of the data, a vector error correction model is used to estimate the effect of regressors, like foreign direct investment, gross domestic product, employment level, and consumption expenditures on a dependent variable, i.e. exports in the short run. The result shows the positive relationships that foreign direct investment, gross domestic product and employment level have on exports, and the adverse impact of consumption expenditures on the dependent variable. The study uses Johansen’s cointegration test for the long run. The results show that all the variables are co‑integrated in the long run. It is suggested that the government should encourage foreign direct investment and gross domestic product, which would help accelerate Pakistan’s exports. It is also suggested that whenever policymakers provide a trade policy, in particular, in relation to exports, then the adverse effect of exchange rate depreciation, external debt burdens, taxes, sanctions and protectionism should be quantified, and necessary measures be suggested so as to minimize any repercussions.

scholarly journals How do Foreign Direct Investment and Growth Interact in India?

2015 ◽  
Vol 2 (2) ◽  
Author(s):  
Gurmeet Singh
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Gross Domestic Product ◽  
Granger Causality ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Foreign Exchange Reserves ◽  
Long Run ◽  
Equilibrium Relationship ◽  
Short Run

The study investigates the relationships between the FDI and economic growth, namely, Gross Domestic Product, exports and foreign exchange reserves over the period 1994 to 2013. Johansen’s co-integration and vector error correction model have been applied to explore the long-run equilibrium relationship between foreign direct investment and economic growth. The analysis reveals that economic growth and the foreign direct investment are co-integrated and, hence, a long-run equilibrium relationship exists between them. It is observed that the foreign direct investment is positively related to gross domestic product and foreign exchange reserves but negatively related to exports. Exports are found to be insignificant in determining FDI. In the Granger causality sense, FDI causes GDP in both long run and short-run. No bidirectional causality is observed between any variables under study. Furthermore, the findings of VECM and Granger Causality test show that FDI creates a long run relationship with economic growth but in short run no causality is found between FDI, exports and foreign exchange reserves.

scholarly journals Serbia's foreign exchange reserve adequacy and the factors influencing their accumulation

2021 ◽  
Vol 23 (1) ◽  
pp. 33-53
Author(s):  
Radovan Kovačević
Keyword(s):  
Gross Domestic Product ◽  
Foreign Exchange ◽  
Optimality Criteria ◽  
Real Effective Exchange Rate ◽  
Foreign Exchange Reserve ◽  
Domestic Product ◽  
Foreign Exchange Reserves ◽  
Monetary Aggregate ◽  
Relevant Variables ◽  
Effective Exchange

In this paper, the adequacy of foreign exchange reserves in Serbia and the factors that influence their accumulation is analyzed by means of an econometric model. The relevant variables, such as the gross domestic product (GDP), the real effective exchange rate (REER) and monetary aggregate M2/GDP are included in the analysis. The unit root tests applied in the research led to the conclusion that the timeseries were integrated of the order I(1). The cointegration test revealed that there was one cointegration equation. The regression model was estimated using the quarterly data for the period from 2002q1 to 2020q3. The estimated cointegration coefficients showed that the economic activity approximated in terms of the gross domestic product (GDP) had a significant influence on foreign exchange reserves accumulation, which is only followed by appreciation pressure on the dinar (approximated by the REER index) and money supply growth (estimated through the monetary aggregate M2/GDP). In addition to conventional factors, the analysis also points out specific factors and their impact on foreign exchange reserve accumulation in Serbia. The results of the research study show that foreign exchange reserves in Serbia are greater than the levels suggested by standard optimality criteria. The findings also suggest that it is necessary to take into account the dividends realized by foreign investors, as well as some segments of portfolio investment in assessing the specific indicator of the adequate level of foreign exchange reserves.

scholarly journals FOREIGN CAPITAL INFLOWS AND MANUFACTURING SECTOR GROWTH IN NIGERIA

2021 ◽  
Vol 25 ◽  
pp. 235-260
Author(s):  
Idris Ahmed Sani ◽  
Ajengbe Abidemi Samuel ◽  
Wada Emmanuel Ome
Keyword(s):  
Gross Domestic Product ◽  
Foreign Capital ◽  
Positive Impact ◽  
Manufacturing Sector ◽  
Capital Inflows ◽  
Domestic Product ◽  
Long Run ◽  
Foreign Capital Inflows ◽  
The Government ◽  
The Impact

The study examined the impact of foreign capital inflow on manufacturing sector growth in Nigeria using time series data from 1986 to 2019. The study specifically sought to examine the causal relationship between foreign capital inflows and the growth of the manufacturing sector in Nigeria in the long run The study employed the Autoregressive Distributed Lag (ARDL) estimation technique to account for the impact of foreign capital inflows on the manufacturing sector growth in Nigeria. The study utilized the Contribution of Manufacturing Sector to Gross Domestic Product (MGDP) as proxy for manufacturing sector growth. Manufacturing sector growth was the dependent variable while foreign direct investment (FDI), foreign portfolio investment (FPI) and foreign Aid (FOA) were the independent variables, and were regarded as proxies for foreign capital inflows. The study results revealed that foreign capital inflows through the FDI had a significant positive impact on contributions of the manufacturing sector to gross domestic product (GDP). The study also revealed that foreign capital inflows through the FPI had a significant positive impact on contributions of the manufacturing sector to the GDP. The study further revealed that foreign capital inflows through the FOA had a significant positive impact on contributions of the manufacturing sector to the GDP. Based on these findings, the study has recommended that the Nigerian government should promote foreign capital inflows through the FDI in order to achieve the desired level of manufacturing sector growth in the country’s economy in the long run. The government should also encourage foreign capital inflows through the FPI in order to attain the desired level of manufacturing sector growth in the Nigerian economy. Finally, the government should also support foreign capital inflows through the FOA in order to attain the desired level of manufacturing sector growth in the Nigerian economy in the long run.

scholarly journals Pengaruh Produk Domestik Bruto, Ekspor Dan Kurs Terhadap Cadangan Devisa Di Indonesia

2020 ◽  
Vol 4 (2) ◽  
pp. 301-313
Author(s):  
Fuji Astuty
Keyword(s):  
Gross Domestic Product ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Time Series Data ◽  
Domestic Product ◽  
Series Data ◽  
Foreign Exchange Reserves ◽  
Federal Reserve Bank ◽  
Reserve Bank ◽  
Analysis Technique

This study aims to analyze the effect of gross domestic product, exports and exchange rate on foreign exchange reserves in Indonesia. This research is in the form of quantitative based on quantitative data and is associative to see the relationship between variables or more. The data used is time series data from 2001 to 2018 using Eviews 9.0. And sourced from Bank Indonesia, the Central Bureau of statistics and the Federal Reserve Bank of St. Louis. This research uses data analysis technique is multiple linear analysis. The results showed that the variables of gross domestic product, exports and exchange rates have a positive and significant effect on Indonesia’s foreign exchange reserve. The R-square value in this study is 95.36, indicating that 95,36% of the variation in foreign exchange reserves can be explained by the gross domestic product, exchange rates and exports, while the remaining 4.64% is explained by other variables outside of this research model

Sign in / Sign up

Export Citation Format

Share Document