<![CDATA[This study aims to reveal and analisys the causality between the macro aggregates that affect currenct account deficit using Granger causality test. Current account deficit/GDP, trade openness, real effective exchange rate, growth rate, and foreign direct investment were selected as variabels for this research.The research methods used are: (1) Stationarity Test; (2) Optimal Lag Lenght; (3) Cointegration Test (based on the results of the cointegration test obtained, this study must be continued using the VECM method); (4) Granger Causality Test; (5) Estimation of the VECM Model (6) Impulse Response Function; (7) Variance Decomposition.The result of the Granger causality test demonstrate that: (1) There is no causal relationship between the current account deficit and trade openness in Indonesia; (2) There is no causal relationship between the current account deficit and real effective exchange rate in Indonesia (3) There is a causal relationship between the current account deficit and economic growth in Indonesia; (4) There is no causal relationship between the current account deficit and foreign direct investment in Indonesia.]]>
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