Proceedings of the Third Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2019)

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Determinant Of Real Exchange Rate In Indonesia: Error Correction Model Approach

Authors
Fradya Randa, Hasdi Aimon
Corresponding Author
Fradya Randa
Available Online September 2019.
DOI
10.2991/piceeba-19.2019.16How to use a DOI?
Keywords
ECM, Cointegration, Rill Exchange Rate
Abstract

The aim of this study is to examine the short-term and long-term relationship explain the shock of the real exchange rate in Indonesia. The analysis model is used cointegration of Johansen-juselius and error correction model (ECM). Data is used by time series from 1982 to 2017. The findings of this study found that trade openness, current account balance, and inflation significantly affected the real exchange rate. In the short term, inflation and foreign investment caused real exchange rate shocks in Indonesia directly. It is thus recommended amongst others that policies have to be put in place to stabilize the problem of inflation

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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Volume Title
Proceedings of the Third Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
September 2019
ISBN
10.2991/piceeba-19.2019.16
ISSN
2352-5428
DOI
10.2991/piceeba-19.2019.16How to use a DOI?
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/).

Cite this article

risenwbib
TY  - CONF
AU  - Fradya Randa
AU  - Hasdi Aimon
PY  - 2019/09
DA  - 2019/09
TI  - Determinant Of Real Exchange Rate In Indonesia: Error Correction Model Approach
BT  - Proceedings of the Third Padang International Conference On Economics Education, Economics, Business and Management, Accounting and Entrepreneurship (PICEEBA 2019)
PB  - Atlantis Press
SP  - 700
EP  - 705
SN  - 2352-5428
UR  - https://doi.org/10.2991/piceeba-19.2019.16
DO  - 10.2991/piceeba-19.2019.16
ID  - Randa2019/09
ER  -