Journal of Indonesian Economy and Business
Vol 26, No 2 (2011): May

THE RISE OF CHINA AND ITS IMPLICATION ON INDONESIA-UNITED STATES TRADE

Putriani, Diyah ( Universitas Gadjah Mada)
Azzani, Meikha ( Universitas Gadjah Mada)



Article Info

Publish Date
28 Feb 2015

Abstract

The purpose of this study is to analyze the impact of Chinese renminbi exchange rate againts the United States (US) dollar, on the bilateral export of Indonesia to the US.Johansen cointegration test and Ordinary Least Square (OLS) regression are employed to examine one impact. This research is limited only in the long-run aspect. The Johansentest shows that there are long-run relationships amongs variables involved such as GDP, Real Exchange Rate (RER), RER Volatility, and dummy variables. Empirical test resultshows that there are positive significant impacts of the Chinese renminbi on the Indonesia’s exports to the US, implying that the relationship between Chinese exports andIndonesia export are complementary in the US market.Keywords: Indonesia, China, the United States, renminbi, cointegration, OLS 

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Journal Info

Abbrev

Publisher

Subject

Economics, Econometrics & Finance

Description

Journal of Indonesian Economy and Business (JIEB) is open access, peer-reviewed journal whose objectives is to publish original research papers related to the Indonesian economy and business issues. This journal is also dedicated to disseminating the published articles freely for international ...