Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)

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The Nexus of International Trade and Inflation on ASEAN-5 Countries’ Economic Growth: The Mediating Role of Exchange Rates

Authors
Putri Haryani1, Agung Maulana2, *, S. M. Ferdous Azam3
1Management and Science University, Malaysia
2Management Study Program, Faculty of Business and Humanities, Nusa Putra University, Indonesia
3Management and Science University, Malaysia
*Corresponding author. Email: agung.maulana@nusaputra.ac.id
Corresponding Author
Agung Maulana
Available Online 10 February 2022.
DOI
10.2991/aebmr.k.220204.025How to use a DOI?
Keywords
ASEAN; Economic Growth; Exchange rates; International Trade; Panel regression
Abstract

Since the last decade, ASEAN countries have been chosen by the developed countries as one of the favorite trading partners. The establishment of ASEAN allows member countries to accelerate their open trading activities worldwide, especially among ASEAN members. However, the export and import activity of the ASEAN-5 countries have interconnected with inflation and exchange rates, which will affect economic growth. The research goal is to look into the impact of international commerce on the economic growth of ASEAN’s founding countries, namely Indonesia, Thailand, Malaysia, Singapore, and the Philippines. We investigated data since the inception of the ASEAN body 53 years (1968-2020) to test the hypotheses and run it using data panel regression with differentiation technique to analyze the data. We used EViews 9th version software to run the data. After the multicollinearity and heteroscedasticity tested, the result shows that the exchange rate significantly mediates international trade (proxied by export and import activity) and the inflation rate on economic growth negatively. While for the direct relationship, import and inflation significantly affect the exchange rate. While export and inflation affect economic growth indirectly effect. Thus, the exchange rate intervenes in a parallel manner between inflation and economic growth and a fully mediate between import and economic growth. The discussions and implications will explain further.

Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
10 February 2022
ISBN
10.2991/aebmr.k.220204.025
ISSN
2352-5428
DOI
10.2991/aebmr.k.220204.025How to use a DOI?
Copyright
© 2022 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

risenwbib
TY  - CONF
AU  - Putri Haryani
AU  - Agung Maulana
AU  - S. M. Ferdous Azam
PY  - 2022
DA  - 2022/02/10
TI  - The Nexus of International Trade and Inflation on ASEAN-5 Countries’ Economic Growth: The Mediating Role of Exchange Rates
BT  - Proceedings of the International Conference on Economics, Management and Accounting (ICEMAC 2021)
PB  - Atlantis Press
SP  - 238
EP  - 248
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220204.025
DO  - 10.2991/aebmr.k.220204.025
ID  - Haryani2022
ER  -