Indonesian Export Analysis: Autoregressive Distributed Lag (ARDL) Model Approach

Authors

DOI:

https://doi.org/10.14414/jebav.v23i3.1668

Keywords:

Export, Inflation, Exchange Rates, Economic Growth, ARDL

Abstract

There are some factors predicted tohave an effect on the countries’ economic devlopment. This study aimed to analyze the long-term and short-term effects of In-flation, Exchange Rate, and Foreign Economic Growth (the destination of the United States, China, and Japan) on the Indonesian Export. The Auto-Regressive Distributed Lag (ARDL) Model is used in this analysis from 1968 through 2017. The results of the analysis show that in the long-term, the inflation and the economic growth in China as well in Japan has a positive sign and significant effect on Indonesian exports. In addition, in the short-term, the US exchange rate and economic growth have a positive significant effect on Indonesian exports.

Author Biography

Abd. Jamal, Faculty of Economics and Business, Universitas Syiah Kuala Darussalam Banda Aceh, 23111

Senior Lecturer of Faculty of Economics and Business

References

Ahmed, K.., Qasim, M., & Chani, M. I. (2017). Impact of Exchange rate on Exports in Case of Pakistan. Bulletin of Business and Economics, 6(2), 98–102. Retrieved from www.researchgate.net/publication/327755348%0AImpact

Aidi, H. (2018). Exchange Rate, Inflation and the Nigerian Balance of Payment Exchange Rate, Inflation and the Nigerian Balance of Payment. Journal of Economics and Sustainable Development, 9(3), 10–16. Retrieved from www.researchgate.net/publication/323991940%0AExchange

Amalia, L. (2007). International Economics. Yogyakarta: Graha Science.

Anshari, M. F., Khilla, A. El, & Permata, I. R. (2017). Analysis Of The Effect Of Inflation And Exchange On Exports In ASEAN Countries 5 Period Of 2012-2016. Journal of Info Artha, 1(2), 121–128.

Arize, A. C., Malindretos, J., & Igwe, U. (2017). Do Exchange Rate Changes Improve the Trade Balance: An Asymmetric Nonlinear Cointegration Approach. International Review of Economics and Finance. https://doi.org/10.1016/j.iref.2017.02.007

Aye, G. C., Gupta, R., Moyo, P. S., & Pillay, N. (2015). The Impact of Exchange Rate Uncertainty on Exports in South Africa. Journal of International Commerce, Economics and Policy, 6(1), 1–14. https://doi.org/10.1142/S1793993315500040

Bagus, I., Udiyana, G., Setyarti, T., Nyoman, N., Astini, S., & Aniyati, I. (2017). Fluctuations in exchange rates and inflation have an effect on export imports and Indonesia’s trade balance for 2007-2015. Management Forum, 15(1), 76–86.

Ball, D. A. (2005). International Business; The Challenge of Global Competition. Translated by Syahrizal Noor. Jakarta: Salemba Empat.

Barthelemy, J., & Cleaud, G. (2017). Trade Balance And Inflation Fluctuations In The EURO Area. Macroeconomic Dynamics, 1–30. https://doi.org/10.1017/S1365100516000456

Chaudhary, G. M., Hashmi, S. H., & Khan, M. A. (2016). Exchange Rate and Foreign Trade: A Comparative Study of Major South Asian and South-East Asian Countries. Procedia - Social and Behavioral Sciences, 230(May), 85–93. https://doi.org/10.1016/j.sbspro.2016.09.011

Cheng, C. H. J. (2017). Effects of Foreign and Domestic Economic Policy Uncertainty Shocks on South Korea. Journal of Asian Economics, 16. https://doi.org/10.1016/j.asieco.2017.05.001

Chisiridis, K., & Panagiotidis, T. (2018). The relationship between Greek exports and foreign income, (3). Retrieved from www.uom.gr/index.php?newlang=eng&tmima=3&categorymenu=2

Ekananda, M. (2014). International Economics. Jakarta: publisher.

Heinze, H. (2018). The determinants of German exports: An analysis of intra-and extra-EMU trade (No. 95/2018). Working Paper, Institute for International Political Economy Berlin. http://hdl.handle.net/10419/174478

Kiganda, E. O., & Obange, N. (2017). Exports as a Determinant of Inflation in Kenya : Disaggregated Econommetric Analysis, 13(10), 417–432. https://doi.org/10.19044/esj.2017.v13n10p417

Krugman, Obstfeld, P. R., & Maurice. (2005). Ekonomi Internasional Teori Dan Kebijakan. Jakarta: PT. Indek Kelompok Gramedia.

Li, H., Ma, H., & Xu, Y. (2015). How do exchange rate movements affect Chinese exports ? — A firm-level investigation. Journal of International Economics. https://doi.org/10.1016/j.jinteco.2015.04.006

Munir, S., & Kiani, A. K. (2011). Relationship between trade openness and inflation: Empirical evidence from Pakistan (1976-2010). Pakistan Development Review, 50(4), 853–876. Retrieved from http://www.pide.org.pk/pdf/PDR/2011/Volume4/853-876.pdf

Obeng, C. K. (2018). Is the effect of exchange rate volatility on export diversification symmetric or asymmetric ? Evidence from Ghana. Cogent Economics & Finance, 6. https://doi.org/10.1080/23322039.2018.1460027

Pesaran, MH, Shin, Y., & Smith, RJ (2001). Bounds testing approaches to the analysis of the level of relationships. Journal of Applied Econometrics, 16, 289-326

Putri, R. F. A., Suhadak, & Sulasmiyati, S. (2016). Effects of Inflation and Exchange Rates on Indonesian Exports of Textile and Electronic Commodities to South Korea (Study Before and After the Asean Korea Free Trade Agreement in 2011). Journal of Business Administration, 35(1), 127–136. Retrieved from www.administrasibisnis.studentjournal.ub.ac.id

Rahardja, P., & Mandala, M. (2008). Introduction to Economics (Microeconomics & Macroeconomics). Third Edition. Jakarta: Institute of Publishers of the Faculty of Economics, University of Indonesia.

Rashid, A., & Waqar, S. M. (2017). Exchange rate fluctuations, firm size, and export behavior : an empirical investigation. Small Business Economics. https://doi.org/10.1007/s11187-017-9849-7

Shafi, K., Hua, L., Idrees, Z., & Nazeer, A. (2015). Impact of the exchange rate, inflation rate and the interest rate on balance of payment : A study from India and Pakistan. American Journal of Business, Economics, and Management, 3(1), 9–13. Retrieved fromwww.openscienceonline.com/journal/ajbem

Shrivastava, M. A., & Panga, D. M. D. (2017). A Study On The Selected Macro-Economic Variables And Its Impact On Total Exports From India. PARIPEX - INDIAN Journal Of Research, 6(12), 381–383. Retrieved from www.worldwidejournals.com

Suryana. (2000). Development Economy: Problems and Approaches. Jakarta: Salemba Empat.

Thuy, V., & Thuy, D. (2019). The Impact of Exchange Rate Volatility on Exports in Vietnam: A Bounds Testing Approach. Journal of Risk and Financial Management, 12(1), 6. https://doi.org/10.3390/jrfm12010006

Uysal, Ö., & Mohamoud, A. S. (2018). Determinants of Export Performance in East Africa Countries. Chinese Business Review, 17(4), 168–178. https://doi.org/10.17265/1537-1506/2018.04.002

Wardhana, A. (2011). Analysis Of Factors Affecting Indonesian Non-Oil And Gas Exports. Journal Of Management And Accounting, 12, 99–102.

World Bank Open Data. (2018). Data Bank. Retrieved August 9, 2018, from The World Bank: https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG

World Bank Open Data. (2018). Data Bank. Retrieved August 9, 2018, from The World Bank: https://data.worldbank.org/indicator/NE.EXP.GNFS.CD

Downloads

Published

2021-03-31

How to Cite

Labibah, S., Jamal, A., & Dawood, T. C. (2021). Indonesian Export Analysis: Autoregressive Distributed Lag (ARDL) Model Approach. Journal of Economics, Business, and Accountancy Ventura, 23(3), 320–328. https://doi.org/10.14414/jebav.v23i3.1668