Effect of Exchange Rate and Foreign Capital to Domestic Price in Indonesia

Keywords

exchange rate; foreign capital; domestic price; ECM.

Abstract

Based on the data analysis, the variables of exchange rates and foreign capital were integrated in the first degree. Meanwhile, the co-integration analysis shows that the data used were integrated. The results show that the variables of exchange rate and foreign capital have a positive effect on the domestic price index both in the short and long term. The effect of the exchange rate and on domestic prices in the long term was much greater than in that in the short term. The aim of the research was to determine the effect of exchange rate and foreign capital on the domestic price in Indonesia. The data used in this study were the secondary data from 1997 to 2015 published by the Central Statistics Agency and International Financial Statistics. The data processing method used was regression analysis with Error Correction Model (ECM).

Copyright

© 2019, 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  - Sri Isnowati
AU  - Akhmad Syakir Kurnia
AU  - Gregorius Nasians Masdjojo
PY  - 2019/11
DA  - 2019/11
TI  - Effect of Exchange Rate and Foreign Capital to Domestic Price in Indonesia
BT  - Proceedings of the 3rd International Conference on Indonesian Social & Political Enquiries (ICISPE 2018)
PB  - Atlantis Press
SP  - 107
EP  - 110
SN  - 2352-5398
UR  - https://www.atlantis-press.com/article/125922580
ID  - Isnowati2019/11
ER  -