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Analysis of Effect Macro Variable on International Trade of Indonesia

Author

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  • Evania Rahma Octavia
  • Dwi Wulandari

Abstract

This study aims to determine the effect of macro variables which include Indonesia's real gross domestic income, money supply, consumer price index and interest rates on international trade mediated by the exchange rate of rupiah against the dollar. This type of research is descriptive research with quantitative approach. Determination of the sample based on quarterly time series data 2010-2014. This study uses path analysis. The results showed domestic gross product, the money supply, and interest rates together have a significant effect on the exchange rate but the consumer price index do not have significant effect on the exchange rate. The results also show that the exchange rate has no significant effect on imports and exports.

Suggested Citation

  • Evania Rahma Octavia & Dwi Wulandari, 2016. "Analysis of Effect Macro Variable on International Trade of Indonesia," Business and Economic Research, Macrothink Institute, vol. 6(2), pages 228-234, December.
    • Handle: RePEc:mth:ber888:v:6:y:2016:i:2:p:228-234
    as

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    References listed on IDEAS

    as
    1. Ronald Macdonald & Mark P. Taylor, 1992. "Exchange Rate Economics: A Survey," IMF Staff Papers, Palgrave Macmillan, vol. 39(1), pages 1-57, March.
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    More about this item

    Keywords

    Gross domestic product; Money supply; Consumer price index; Interest rates; Exchange rate; International trade;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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