The Relationship Between Exchange Rate and Trade Balances: An Empirical Study on Indonesia

DOI

10.2991/aebmr.k.200606.036How to use a DOI?

Keywords

Exchange rate, Trade balance, Indonesia, VAR, J-Curve

Abstract

The aim of the study is to analyze the relationship between exchange rate and trade balance in Indonesia from 1986 to 2018 (33 years) using the Vector Autoregression (VAR) Model. Also, the study examining the possibility of the J-Curve effect in Indonesia’s trade balance. The main findings of this study are: in Indonesia, from 1986 to 2018, the value of net trade last year brings a small effect on the value of the exchange rate. However, it significantly reacts to the shock on the exchange rate, although it is not depicted as the J-Curve effect.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Setyo Tri Wahyudi
AU  - Sielvia Sari
PY  - 2020
DA  - 2020/06/09
TI  - The Relationship Between Exchange Rate and Trade Balances: An Empirical Study on Indonesia
BT  - Proceedings of the 23rd Asian Forum of Business Education(AFBE 2019)
PB  - Atlantis Press
SP  - 217
EP  - 221
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200606.036
DO  - 10.2991/aebmr.k.200606.036
ID  - Wahyudi2020
ER  -