Interdependence Analysis of Factors Affecting Indonesia’s of Payments

T. Citra Nisa Farza, Fitrawaty, Muhammad Yusuf

2018

Abstract

This study aims to analyze the interdependencies between variables on a reciprocal basis using the VECM method through a stationary test, determination of optimal lag, stability test models, and cointegration test. The result showed that: (1) In the short-term, inflation negatively affects the balance of payments; interest rate and GDP positively affect the balance of payments. In the long run, inflation is a positive effect on the balance of payments; interest rate and GDP negatively affect on the balance of payments. Meanwhile, the exchange rate negatively affect the balance of payments and money supply positively affect on the balance of payments both in the short-term and long-term (2) the test of Impulse Response Function indicate a positive response that given by the balance of payments toward the shock that occurred on inflation, exchange and interest rates towards the end of the period, while the response of the balance of payments to the shock that occurred in the money supply and GDP towards the end of the period is negative (3) the test of Decomposition Varian shows that at the end of the period of contributions, the balance of payments has decreased while the contribution of the exchange rate experienced enhancement.

Paper Citation

in Bibtex Style

@conference{unicees18,
author={T. Citra Nisa Farza and Fitrawaty and Muhammad Yusuf},
title={Interdependence Analysis of Factors Affecting Indonesia’s of Payments},
booktitle={Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,},
year={2018},
pages={577-585},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0009507005770585},
isbn={978-989-758-432-9},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES,
TI - Interdependence Analysis of Factors Affecting Indonesia’s of Payments
SN - 978-989-758-432-9
AU - Farza T.
AU - Fitrawaty.
AU - Yusuf M.
PY - 2018
SP - 577
EP - 585
DO - 10.5220/0009507005770585

in Harvard Style

Farza T., Fitrawaty. and Yusuf M. (2018). Interdependence Analysis of Factors Affecting Indonesia’s of Payments.In Proceedings of the 1st Unimed International Conference on Economics Education and Social Science - Volume 1: UNICEES, ISBN 978-989-758-432-9, pages 577-585. DOI: 10.5220/0009507005770585