Analysis of the Effect of Macro Economic Indicators and Dow Jones Index on IDX Composite in Indonesia Stock Exchange

Study aims to analyze the macroeconomic effect of the Dow Jones index on IDX Composite on the Indonesia Stock Exchange. The variables used in the macro economy are inflation, kurs, SBI rate, FED rate. Another variable is the Dow Jones index. This study uses quarterly secondary data from 2010 to 2020. The data analysis model uses the Autoregressive Distributed Lag (ARDL) approach. The results of the ARDL model analysis show that in the long term inflation, kurs, and FED rate has a negative and insignificant effect on the IDX Composite, SBI rate variable has a positive and not significant effect on the IDX Composite, the Dow Jones index variable has a positive and no significant effect on the IDX Composite significant to the IDX Composite. In the short term, inflation has a negative and insignificant effect on the IDX Composite, kurs has a negative and significant effect on the IDX Composite, SBI rate has a positive and insignificant effect on the IDX Composite, FED rate and the Dow Jones index have a positive and significant effect on the IDX Composite. Keywords: IDX Composite, Inflation, Kurs, SBI Rate, FED Rate, Dow Jones index.

Macroeconomic Pandemic Panorama of Developing Economies: A Special Case of Indian Economy

The recent COVID-19 pandemic has adversely affected the socio-economic and political ecosystem across the economies. The externalities can be observed in all dimensions such as in labor market, manufacturing and services, transportation, and tourism. It has been observed that the populated developing economies have been severely impacted due to spread of pandemic. The rising health expenditure, increasing debt, labor migration, increase in unemployment, prices, and the loss of output are the major factors to drag these economies into vulnerability. The present study attempts to identify the numerous adverse externalities generated due to COVID-19 pandemic in the developing economies. The macroeconomic effect of pandemic on Indian economy has been discussed in the later section of the study.

Macroeconomic effect on stock price: Evidence from Indonesia

Investment decision making by Engineering Managers needs to take into account microeconomic and macroeconomic factors in a country. The role of Engineering Managers in making decisions is crucial and very important. Technical Managers need to consider macro-economic effects such as the US dollar exchange rate against the rupiah, the interest rate set by Bank Indonesia, inflation, especially during the preparation of the Budget Plan (RAB). This research is to analyze the macroeconomic effect on stock prices, to prove the hypothesis, a quantitative approach is used. Macroeconomics are assessed through the US dollar exchange rate, and financial statements data of banking companies.

ЄВРАЗІЙСЬКИЙ ЕКОНОМІЧНИЙ СОЮЗ: ЄВРАЗІЙСЬКИЙ ЕКОНОМІЧНИЙ СОЮЗ: РОЗВИТОК ВЗАЄМНОЇ ТОРГІВЛІ ДЕРЖАВ-ЧЛЕНІВ

The study of mutual trade of the EAEU member states is relevant from the point of view of its improvement in order to achieve the macroeconomic effect of the EAEU creation. The purpose of the article is to study the economic indicators of mutual trade between the EAEU member states and to identify the main trends and prospects for trade relations development in the EAEU integration environment. The object of the study is trade relations between the EAEU member states. Methods used in the study. The study was conducted using official statistics of the EAEU for 2014–2018 and is based on economic comparisons and systematization. The development of cooperative ties within the EAEU, an extensive list of program and reporting documents was studied. Research hypothesis. Mutual trade of the EAEU member states has positive development trends. Statement of the main material. Significant changes in the dynamics of trade relations and their regulation in Belarus, Russia, Kazakhstan, Kyrgyzstan, Armenia are associated with the creation of the EAEU. The analysis of indicators of mutual trade between the EAEU member states showed that the Russian Federation occupies a leading position in mutual trade, and the Russian market is main market for goods from other EAEU member states. Trends indicate that the benefits of integration within the EAEU are not fully realized. Originality and practical value. Further development of EAEU trade relations is seen in the context of regional economic integration. Development on a cooperative basis will save the costs of the EAEU member countries and take advantage of the specialization of the countries. Conclusion. Intensification of mutual trade of the EAEU member states is possible by stimulating consumer and industrial demand, increasing the export of high-tech products and diversifying exports

Evaluating financial stress indicators: evidence from Indian data

Purpose The purpose of this study is to assess alternative financial stress indicators for India in terms of tracing crisis events, mapping with the business cycle and the macroeconomic effect of stress indices. Design/methodology/approach The study constructs the composite indicator of systemic stress of Hollo, Kremer and Lo Duca (2012) for India using two different methods for computing time-varying cross-correlation matrix, namely, exponentially weighted moving average (EWMA) and dynamic conditional correlation-generalized autoregressive conditional heteroscedasticity (DCC-GARCH). The derived indices are evaluated with widely used, equal variance and principal component weighting indices in terms of tracing stress events, mapping with the business cycles and the macroeconomic effect. For this purpose, the study identifies various episodes of financial stress and uses the business cycle dates in the sample covering from January 2001 to October 2018. Findings The results suggest that stress indices based on EWMA and DCC-GARCH accurately identify the well-known stress periods and capture the recession dates and show an adverse effect on economic activity. Primarily, the DCC-GARCH-based stress index emerges as a better indicator of stress because it efficiently locates all the major-minor events, traces the build-up of stress and reverts to the normal level during stable times. Practical implications The DCC-GARCH-based stress index is a very useful indicator for policymakers in regularly monitoring India’s financial conditions and providing timely identification of systemic stress to avoid adverse repercussion effects of the financial crisis. Originality/value The 2007–2008 financial crisis and subsequent recurrent instability in the financial markets highlighted the requirement for an appropriate financial stress indicator for a timely assessment of the system-wide financial stress. To the authors’ knowledge, this is the first study that incorporates the systemic nature of financial stress in the construction of stress indices for India and provides a holistic evaluation of the financial stress from an emerging country’s perspective.

The economic impacts of the 2018 Winter Olympics

The economic viability of the 2018 Pyeongchang Winter Olympics is still being debated. Using the latest available input–output tables and tourism data, this study estimates the short-run impact of the event. The estimated macroeconomic effect shows that tourism spending linked to the 2018 Winter Olympic Games has contributed ₩1.9 trillion to national output, which is greater than the operational cost of ₩1.7 trillion. It is estimated that the ₩11.5 trillion of infrastructural investment may have induced ₩18.5 trillion of gross domestic product for the national economy, so hosting the 2018 Winter Olympic Games is beneficial to South Korea. The sectoral effect shows that the increase in tourism demand benefits not only tourism sectors but also non-tourism sectors due to significant indirect and induced effects.

Relationship Between Transport Infrastructure Development and Price Formation

The paper suggests a bidirectional nexus between transport infrastructure and price formation. It is argued that the link between these two factors is not only through microeconomic effect that transport infrastructure development has on pricing, but also that it can be analyzed from the macroeconomic perspective. Hence, the article is aimed at investigating the bidirectional nexus between transport infrastructure and price formation. The main hypotheses of the research are the following: (1) Macro- and macroeconomic effects are different with respect to the sign of their influence; (2) Microeconomic effect is described by the negative effect of transport infrastructure development on price level; (3) Macroeconomic effect is perceived as a positive influence of price level increase on transport infrastructure development. Therefore, it is assumed the link between transport infrastructure and price formation is bidirectional: transport infrastructure has a negative effect on price formation, whereas price formation positively impacts transport infrastructure development. To test the hypothesis, analysis was conducted of 118 countries of different economic, social and political systems with the use of panel regression. The panel data for 2009-2018 years was used. The results indicate the presence of the said bidirectional link and prove the hypotheses set. Transport infrastructure development, represented by transport infrastructure score through the global competitiveness index, leads to reduction in price level, measured by the conversion factor of purchase power parity to exchange rates. In contrast, an increase in price level positively impacts transport infrastructure development. The nexus of transport infrastructure and price formation is explained through two directions: 1) from specific to general (including price fall by transport capacity increase – microeconomic effect); 2) from general to specific (as a social development level that determines the efficiency of management processes, in transport and logistics – macroeconomic effect).