Sri Isnowati, Mulyo Budi Setiawan

101128

Exchange Rate Pass Through To Import Prices In Indonesia: Evidence Post Free Floating Exchange Rate

Exchange Rate Pass Through To Import Prices In Indonesia: Evidence Post Free Floating Exchange Rate

The aim of this research was to examine the interdependence between import price, exchange rate, national income and inflation. The data analysis method used was structural vector autoregresive (SVAR). The analysis was conducted on the impulse response function (IFRS) and forecast error variance decompositions (FEDVs) to determine the effect of exchange rate to import price and national income. The results show that the degree of exchange rate pass through was incomplete. The exchange rate shock had positive effect on import price and had negative effect on national income. Meanwhile, the effect of inflation on import price was negative. Furthermore, FEDVs analysis show that the variations of import price were largely determined by the import price, and the exchange rate variations were largely determined by the exchange rate itself. The research results show that exchange rate, national income and inflation were gradually getting stronger and gave permanent effects.

Keywords:

Import Price Exchange Rate, Structural Vector Autoregresive,

International Journal of Economics and Financial Issues-Cover

Başlangıç: 2011
Yayıncı: İlhan ÖZTÜRK

Arşiv

Sayıdaki Diğer Makaleler

Tax Mechanisms of Economic Development and the Improvement of Migration Situation in the Russian Arctic

Svetlana A. Sukneva, Inga V. Nikulkina

The Stationary of Productivity Shocks: Evidence from 25 OECD and Big 7 Countries

Aviral Kumar TİWARİ, Faridul ISLAM, Süleyman BOLAT, Phouphet KYOPHİLAVONG, Byoungki KİM

Can Gold Investments Provide a Good Hedge Against Inflation? An Empirical Analysis

Exchange Rate Uncertainty Effect on Export-Oriented Companies at Tehran Stock Exchange (yield) Rate of Return: A Panel- Vector Autoregressive Model

Gholamreza Zamanian, Kamran Mahmodpour, Sepideh Yari

The Impact of the Sri Lankan Civil War on the Stock Market Performances

Shashitha Gimhani JAYAKODY

China Trade Expansion: A Case Study of Vietnam

Vy Dang Bich Huynh, Phuc Van Nguyen, Quyen Le Hoang Thuy To Nguyen, Phong Thanh Nguyen

An Investigation of the Relationship between Earnings Management and Financial Ratios (Panel Data Approach)

Analysis of Operating Cash Flow to Detect Real Activity Manipulation and Its Effect on Market Performance

Effects of Corporate Governance Structures on Enterprise Risk Management Practices in Malaysia

Zuraidah MOHD-SANUSİ, Shayan MOTJABA-NİA, Nurul A. ROOSLE, Ria Nelly SARİ, Agus HARJİTOK

A Gravitational Model for Estimate the Determinants of Outward Foreign Direct Investment of China

Marco MELE, Angelo QUARTO