IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-06-1.html
   My bibliography  Save this article

The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia

Author

Listed:
  • Manat Rahim

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,)

  • Pasrun Adam

    (Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia.)

  • Heppi Millia

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,)

  • La Ode Suriadi

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,)

  • La Ode Ode Saidi

    (Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia.)

Abstract

This article reports the results of a study examining the causal relationship between fuel consumption, exchange rates, and economic growth in Southeast Sulawesi, Indonesia. The data used are annual time series data ranging from 1988 to 2016. The estimation results of the VAR model and the Granger causality test indicate that the causal relationship that occurs is only a short-term causality, namely from fuel consumption to economic growth.

Suggested Citation

  • Manat Rahim & Pasrun Adam & Heppi Millia & La Ode Suriadi & La Ode Ode Saidi, 2021. "The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 1-6.
    • Handle: RePEc:eco:journ2:2021-06-1
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/11518/6095
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/11518/6095
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pasrun Adam & Pasrun Adam & Rosnawintang Rosnawintang & Ambo Wonua Nusantara & Abd Aziz Muthalib, 2017. "A Model of the Dynamic of the Relationship between Exchange Rate and Indonesia's Export," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 255-261.
    2. Adam, P. & Rianse, U. & Harafah, Ĺ. M. & Cahyono, E. & Rafiy, M., 2016. "A Model of the Dynamics of the Effect of World Crude Oil Price and World Rice Price on Indonesia’s Inflation Rate," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(1), pages 1-10, March.
    3. Acaravci, Ali & Ozturk, Ilhan, 2012. "Foreign Direct Investment, Export and Economic Growth: Empirical Evidence from New EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 52-67, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Desta Bati Nuno, 2022. "Analysis of the Causal Relationship between Precious Metal Prices and Inflation: Evidence from Ethiopia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 77-88.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ayamba Emmanuel Caesar & Chen HaiBo & Thomas Bilaliib Udimal & Andrew Osei-Agyemang, 2018. "Foreign Direct Investment, Growth of Output Indicators and Economic Growth in China: Empirical Evidence on Causal Links," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 315-322.
    2. Iqbal, Javed & Mahmood, Fatima & Nosheen, Misbah & Wohar, Mark, 2023. "The asymmetric impact of exchange rate misalignment on economic growth of India: An application of Hodrick–Prescott filter technique," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 809-823.
    3. Mohammed Ershad Hussain & Mahfuzul Haque, 2016. "Foreign Direct Investment, Trade, and Economic Growth: An Empirical Analysis of Bangladesh," Economies, MDPI, vol. 4(2), pages 1-14, April.
    4. Florentina Viorica GHEORGHE & Artur - Emilian SIMION, 2018. "The link between international trade flows of "Machinery and transport equipment" and foreign direct investment in Romania," Computational Methods in Social Sciences (CMSS), "Nicolae Titulescu" University of Bucharest, Faculty of Economic Sciences, vol. 6(1), pages 42-54, June.
    5. Liliana Scutaru, 2015. "The Structure And Territorial Dynamic Of Foreign Direct Investment In Romania," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 185-190, February.
    6. POPOVICI Oana Cristina & HOROBEȚ Alexandra, 2018. "Performance Dissimilarities in the Activity of Foreign and Romanian-Owned Companies: What Lessons to be Learned?," European Journal of Interdisciplinary Studies, Bucharest Economic Academy, issue 01, March.
    7. Catalina Florentina PRICOPE, 2017. "The implications of IFRS adoption on foreign direct investment in poor countries," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 15(146), pages 218-218.
    8. Balaban, Suzana & Živkov, Dejan & Milenković, Ivan, 2019. "Impact of an unexplained component of real exchange rate volatility on FDI: Evidence from transition countries," Economic Systems, Elsevier, vol. 43(3).
    9. Myovella, Godwin A. & Paul, Fintan & Rwakalaza, Rameck T., 2015. "Export-Led Growth Hypothesis: Evidence from Agricultural Exports in Tanzania," African Journal of Economic Review, African Journal of Economic Review, vol. 3(2), July.
    10. Heppi Millia & Muh. Syarif & Pasrun Adam & Manat Rahim & Gamsir Gamsir & Rostin Rostin, 2021. "The Effect of Export and Import on Economic Growth in Indonesia," International Journal of Economics and Financial Issues, Econjournals, vol. 11(6), pages 17-23.
    11. Oana Cristina Popovici & Adrian Cantemir Călin, 2016. "Economic Growth, Foreign Investments and Exports in Romania: A VECM Analysis," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 19(61), pages 95-122, September.
    12. Chanchala Hathurusingha & Neda Abdelhamid & David Airehrour, 2019. "Forecasting Models Based on Data Analytics for Predicting Rice Price Volatility: A Case Study of the Sri Lankan Rice Market," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 1-20, March.
    13. Pasrun Adam & Pasrun Adam & Rosnawintang Rosnawintang & Ambo Wonua Nusantara & Abd Aziz Muthalib, 2017. "A Model of the Dynamic of the Relationship between Exchange Rate and Indonesia's Export," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 255-261.
    14. Radovan Kastratović, 2020. "The impact of foreign direct investment on host country exports: A meta‐analysis," The World Economy, Wiley Blackwell, vol. 43(12), pages 3142-3183, December.
    15. Bakari, Sayef, 2022. "The Nexus between Domestic Investment and Economic Growth in Developed Countries: Do Exports matter?," MPRA Paper 114394, University Library of Munich, Germany.
    16. Svilena Mihaylova, 2023. "Foreign Affiliates versus Domestic Firms in the Information and Communication Services Sector in Central and Eastern Europe," Bulgarian Economic Papers bep-2023-04, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Mar 2023.
    17. Ștefan Cristian Gherghina & Liliana Nicoleta Simionescu & Oana Simona Hudea, 2019. "Exploring Foreign Direct Investment–Economic Growth Nexus—Empirical Evidence from Central and Eastern European Countries," Sustainability, MDPI, vol. 11(19), pages 1-33, September.
    18. La Ode Saidi & Hasan Aedy & Fajar Saranani & Rosnawintang Rosnawintang & Pasrun Adam & La Ode Arsad Sani, 2020. "Crude Oil Price and Exchange Rate: An Analysis of the Asymmetric Effect and Volatility Using the Non Linear Autoregressive Distributed Lag and General Autoregressive Conditional Heterochedasticity in ," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 104-108.
    19. Mitra Lal Devkota, 2019. "Testing The Causality And Cointegration Between Exports, Imports, And Exchange Rates: Evidence From India," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 5-13, February.
    20. Rostin Rostin & Abd Azis Muthalib & Pasrun Adam & Muh. Nur & Zainudin Saenong & La Ode Suriadi & Jamal Nasir Baso, 2019. "The Effect of Crude Oil Prices on Inflation, Interest Rates and Economic Growth in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(5), pages 14-19.

    More about this item

    Keywords

    fuel consumption; exchange rate; economic growth; VAR model; Granger causality test.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F31 - International Economics - - International Finance - - - Foreign Exchange

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-06-1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.