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Effect of Exchange Rate and Foreign Capital to Domestic Price in Indonesia

Sri, Isnowati and Gregorius, N Masdjojo, and Akhmad, Syakir Effect of Exchange Rate and Foreign Capital to Domestic Price in Indonesia. ICISPE 2018.

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Abstract

Based on the data analysis, the variables of exchange rates and foreign capital were integrated in the first degree. Meanwhile, the co-integration analysis shows that the data used were integrated. The results show that the variables of exchange rate and foreign capital have a positive effect on the domestic price index both in the short and long term. The effect of the exchange rate and on domestic prices in the long term was much greater than in that in the short term. The aim of the research was to determine the effect of exchange rate and foreign capital on the domestic price in Indonesia. The data used in this study were the secondary data from 1997 to 2015 published by the Central Statistics Agency and International Financial Statistics. The data processing method used was regression analysis with Error Correction Model (ECM). Keywords: exchange rate; foreign capital; domestic price; ECM.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Faculty / Institution: Fakultas Ekonomika dan Bisnis
Depositing User: Fakultas Ekonomi
Date Deposited: 04 Jul 2023 07:17
Last Modified: 04 Jul 2023 07:17
URI: https://eprints.unisbank.ac.id/id/eprint/9644

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