La Saidi, Pasrun Adam, - Rostin, Zainuddin SAENONG, Muh. Yani BALAKA, - GAMSİR, - ASMUDDİN, - SALWİAH

83118

The Effect of Stock Prices and Exchange Rates on Economic Growth in Indonesia

The Effect of Stock Prices and Exchange Rates on Economic Growth in Indonesia

This research aims to investigate the effect of stock prices and exchange rates on Indonesia economic growth. The data were used the quarterly time series spanning in the period, 2004Q1-2015Q3. Econometric model were used to analyze these data is the autoregressive distributed lag (ADL) model. The result of stationary test showed that all of the time series of share prices, exchange rates, and economic growth are stationary at the first difference, or integrated of order one, I(1). The results of cointegration test showed that the third time series of stock prices, exchange rates, and economic growth are not cointegrated. The results of effect test showed that there is an effect of the stock prices and exchange rates on Indonesia’s economic growth. Furthermore, the amount of influence stock prices on economic growth is greater than the effect of exchange rates on economic growth.
Keywords:

Stock Price, Exchange Rate, Economic Growth, Autoregressive Distributed Lag Model,

PDF
International Journal of Economics and Financial Issues-Cover
  • Başlangıç: 2011
  • Yayıncı: İlhan ÖZTÜRK
Arşiv
Sayıdaki Diğer Makaleler

Cyberspace Enhanced Payment Systems in the Zimbabwean Retail Sector: Opportunities and Threats

İshmael MUGARİ

Association of South-East Asian Nations-US Stock Market Associations in and Around US 2007-09 Financial Crisis: An Autoregressive Distributed Lag Application for Policy Implications

Ranjan DASGUPTA

How Terrorism Affects Foreign Direct Investment in Pakistan?

Hashmat ALİ, Wang QİNGSHİ, İrfan ULLAH, Zulfiqar ALİ

The Effect of Social Media on Customer Loyalty and Company Performance of Insurance Industry

Narges DELAFROOZ, Marzieh ZENDEHDEL, Maryam FATHİPOOR

Is Ecuador Real Gross Domestic Product per Capita and Other Macroeconomic Variables Cointegrated? An Autoregressive Distribution Lag Bound Test Approach

Jesser Roberto Paladines Amaiquema

Evaluating the Benefits of New Financial System (Accrual Accounting) Establishment in Medical and Health Care Sciences, Guilan University

Mohammad Reza Pour HOSEİN, Morteza HASSANZADEH, Seyedeh Saeedeh HASHEMİ

The Impact of Kyoto Protocol on Environment Quality in the Free Trade Era: The Case of G20 Countries

Puspaning Buanawaty, Fithra Faisal Hastiadi

The Impact of Working Capital Management on Firm’s Profitability: Evidence from Malaysian Listed Manufacturing Firms

Sin-huei NG, Chen YE, Tze San ONG, Boon Heng TEH

Risk-free Yields, Risk Aversion, and Volatility

Samih Antoine AZAR

Examining the Effect of Social and Intellectual Value on Organizational Performance Based on the Balanced Evaluation Method and Structural Equations in the Iranian Oil Terminals Company

Abbas Taleb Bidokhti, Ali Akbar Esmailpour