A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export

Pasrun Adam; - Rosnawintang; Ambo Wonua Nusantara; Abd Aziz Muthalib

EN

A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export

Abstract

This study aims to investigate the effect of Rupiah/US dollar exchange rate on the volume of Indonesia’s export. It analyzes monthly data spanning from January 2001 to November 2015. An econometric model used to analyze the data is the difference equation model. Result of analysis found that in the long term the exchange rate of rupiah/US dollar affects export. This long-term influence is negative, in that each 1% increase (decrease) in rupiah/US dollar is always followed by 0.24% fall (rise) in export. Furthermore, in the short term there is an effect of the exchange rate of rupiah/US dollar on export and the effect is also negative. Indonesian government needs to conduct a policy aimed at increasing industrial outputs that can boost exports. The government also needs to implement a monetary policy to ensure that the exchange rate of rupiah remains stable.

Keywords

Exchange rate, export, difference equation model

Details

Primary Language

English

Subjects

-

Journal Section

-

Authors

Pasrun Adam This is me

- Rosnawintang This is me

Ambo Wonua Nusantara This is me

Abd Aziz Muthalib This is me

Publication Date

March 1, 2017

Submission Date

March 1, 2017

Acceptance Date

-

Published in Issue

Year 2017 Volume: 7 Number: 1

IZ

https://izlik.org/JA58KA89FD

Cite

RIS / Bibtex

APA

Adam, P., Rosnawintang, -, Nusantara, A. W., & Muthalib, A. A. (2017). A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export. International Journal of Economics and Financial Issues, 7(1), 255-261. https://izlik.org/JA58KA89FD

AMA

1.Adam P, Rosnawintang, Nusantara AW, Muthalib AA. A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export. IJEFI. 2017;7(1):255-261. https://izlik.org/JA58KA89FD

Chicago

Adam, Pasrun, - Rosnawintang, Ambo Wonua Nusantara, and Abd Aziz Muthalib. 2017. “A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export”. International Journal of Economics and Financial Issues 7 (1): 255-61. https://izlik.org/JA58KA89FD.

EndNote

Adam P, Rosnawintang -, Nusantara AW, Muthalib AA (March 1, 2017) A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export. International Journal of Economics and Financial Issues 7 1 255–261.

IEEE

[1]P. Adam, - Rosnawintang, A. W. Nusantara, and A. A. Muthalib, “A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export”, IJEFI, vol. 7, no. 1, pp. 255–261, Mar. 2017, [Online]. Available: https://izlik.org/JA58KA89FD

ISNAD

Adam, Pasrun - Rosnawintang, - - Nusantara, Ambo Wonua - Muthalib, Abd Aziz. “A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export”. International Journal of Economics and Financial Issues 7/1 (March 1, 2017): 255-261. https://izlik.org/JA58KA89FD.

JAMA

1.Adam P, Rosnawintang -, Nusantara AW, Muthalib AA. A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export. IJEFI. 2017;7:255–261.

MLA

Adam, Pasrun, et al. “A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export”. International Journal of Economics and Financial Issues, vol. 7, no. 1, Mar. 2017, pp. 255-61, https://izlik.org/JA58KA89FD.

Vancouver

1.Pasrun Adam, - Rosnawintang, Ambo Wonua Nusantara, Abd Aziz Muthalib. A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export. IJEFI [Internet]. 2017 Mar. 1;7(1):255-61. Available from: https://izlik.org/JA58KA89FD