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

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

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

Year 2017, Volume: 7 Issue: 1, 255 - 261, 01.03.2017

Pasrun Adam - Rosnawintang Ambo Wonua Nusantara Abd Aziz Muthalib

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

Year 2017, Volume: 7 Issue: 1, 255 - 261, 01.03.2017

Pasrun Adam - Rosnawintang Ambo Wonua Nusantara Abd Aziz Muthalib

Abstract

There are 0 citations in total.

Details

Other ID	JA63DJ66EB
Journal Section	Research Article
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
Published in Issue	Year 2017 Volume: 7 Issue: 1

Cite

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.
AMA	Adam P, Rosnawintang, Nusantara AW, Muthalib AA. A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export. IJEFI. March 2017;7(1):255-261.
Chicago	Adam, Pasrun, - Rosnawintang, Ambo Wonua Nusantara, and Abd Aziz Muthalib. “A Model of The Dynamic of The Relationship Between Exchange Rate and Indonesia’s Export”. International Journal of Economics and Financial Issues 7, no. 1 (March 2017): 255-61.
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	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, 2017.
ISNAD	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 7/1 (March 2017), 255-261.
JAMA	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, 2017, pp. 255-61.
Vancouver	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):255-61.