Buletin Ekonomika Pembangunan
Vol 3, No 1 (2022): MARET

Romer's Hypothesis Validation and Threshold of Trade Openness in ASEAN

Anggit Hamidi (Universitas Trunojoyo Madura)
Alvin Sugeng Prasetyo (Fakultas Ekonomi dan Bisnis Universitas Trunojoyo Madura)



Article Info

Publish Date
10 Aug 2022

Abstract

ABSTRACTThe purpose of this study is to test and analyze Romer's hypothesis regarding the impact of trade openness on inflation. In addition, this study also aims to measure the threshold point of trade openness. The method used is the System GMM and the Threshold Panel for the period 2010-2021. The estimation results show that trade openness has a significant effect on inflation. The sign of the coefficient of trade openness is positive, meaning that an increase in trade openness will lead to higher inflation. These results mean that Romer's hypothesis is invalid in ASEAN. The government is expected to be able to reduce the degree of trade openness by re-establishing agreements with bilateral and multilateral countries. If the trade agreement is profitable then it is continued, if it is not profitable it is better not to continue.Keywords: Trade Openness, Inflation, System GMM, ASEAN

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Journal Info

Abbrev

bep

Publisher

Subject

Economics, Econometrics & Finance

Description

Buletin Ekonomika Pembangunan menyediakan para akademisi, mahasiswa dan peneliti untuk mempublikasikan artikel hasil penelitiannya. Ruang lingkup meliputi : 1. Ekonomi Pembangunan 2. Ekonomi Publik 3. Ekonomi Moneter dan Perbankan 4. Ekonomi Industri 5. ESDM 6. ESDA 7. Ekonomi Ketenagakerjaan 8. ...