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Journal : Economic Development Analysis Journal

Relationship of Macroeconomics Variables in Indonesia Using Vector Error Correction Model Meilina Retno Hapsari; Suci Astutik; Loekito Adi Soehono
Economics Development Analysis Journal Vol 9 No 4 (2020): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v9i4.38662

Abstract

This study aims to analyze the relationship between macroeconomic variables in Indonesia, namely GDP with money supply, exchange rate of rupiah to US Dollar, exports, imports and interest rates. The background problem is to analyze the best method to influence government targets or policies on economic growth by studying the relationship of macroeconomic variables. Previous studies analyzing the relationship between macroeconomic variables in Indonesia have used multiple linear regression analysis. Using VECM analysis we can find out the short-term and long-term effects on the relationship between macroeconomic variables in Indonesia. The analysis used in this study is the Vector Error Correction Model with Maximum Likelihood estimation. Based on the result, the cointegration test found that there is a long-term relationship. Based on the VECM model (3), in the short term there is a relationship between macroeconomic variables and in the long run there is a long-term causality relationship in the GDP and export models. It is expected that the Government and the Central Bank will work together cooperatively in making policies to keep control of the money supply, exchange rate of rupiah to US Dollar and interest rates to enable to stimulate the economy.
Co-Authors Abu Bakar Sambah, Abu Bakar Achmad Efendi Adji Achmad Rinaldo Fernandes Ani Budi Astuti Ani Budi Astuti Ari Purwanto Sarwo Prasojo Atiek Iriany Aulia, Silvia Intan Azizah, Laila Nur Bestari Archita Safitri Budiarti, Laelita Damayanti, Rismania Hartanti Putri Yulianing Darmanto Darmanto Darmanto Darmanto Dewi Kurnia Sari Dewi, Vita Rosiana Diego Irsandy Djihan Wahyuni Djihan Wahyuni effendi, Achmad Elok Pratiwi Evellin Dewi Lusiana, Evellin Dewi Fachri Faisal Fahimah Fauwziyah Fairuz Zada Zayyana Fakhrunnisa, Atmadani Rahayu Fernandes, Adji Achmad Rinaldo Fidia Raaihatul Mashfia Fitriani, Suci Handayani, Sri Heni Kusdarwati Henny Pramoedyo Henny Pramoedyo Henny Pramoedyo Husnul Khatimah Irsandy, Diego Ismi Chai Runnisa Isnani Darti Kusdarwati, Heni Lee, Muhammad Hisyam Lestari, Dwi Retno Loekito Adi Soehono Loekito Adi Soehono Lusia, Dwi Ayu Lusiana, Evelin Dewi Maharani, Adinda Gita Maisaroh, Ulfah Mashfia, Fidia Raaihatul Masrokhah, Dwi Meilina Retno Hapsari Meilinda Trisilia Muhammad, Alifiandi Rafi Nabila Azarin Balqis Nanda Rizqia Pradana Ratnasari, Nanda Rizqia Pradana Negara, Nur Aminah Kusuma Ni Wayan Surya Wardhani Ni Wayan Surya Wardhani Nisa Dwirahma Widhiasih Novi Nur Aini Nur Iriawan Nurjannah Nurjannah Ola, Petrus Kanisius pramoedyo, henny Pratama, Muhamad Liswansyah Qurrotu A’yun Nafidah Rahma Fitriani Rahma Fitriani Rahmi, Nur Silviyah Ramifidisoa, Lucius Risda, Intan Fadhila Rohma, Usriatur Rozy, Agus Fachrur Salsabila, Imelda Saniyawati, Fang You Dwi Ayu Shalu Sera Yunarizal P Setiarini, An Nisa Dwi Shahuneeza Naseer, Mariyam Siti Nurmardia Abdussamad Solimun Solimun Solimun, Solimun Sumarminingsih, Eni Susanto, Mohammad Hilmi Susi Wuryantini Syalsabilla, Alya Fitri Theresia Mitakda, Maria Bernadetha Tiza Ayu Virania Usriatur Rohma Viera Wardhani Widiarni Ginta Sasmita Wulaida Rizky Fitrilia Wulaida Rizky Fitrilia Zamelina, Armando Jacquis Federal Zerlita Fahdha Pusdiktasari