EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8

This study was aimed to analyze the relationship of long-term and short-term equilibrium between exchange rates and inflation on exports in ASEAN-8 countries (Brunei Darussalam, Laos, Indonesia, Malaysia, Singapore, Philippines, Vietnam and Thailand) by using analysis model with the Autoregressive D...

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Main Authors: Rika Mauliana, Abd. Jamal, Suriani Suriani
Format: Article
Language:English
Published: Universitas Pasundan 2020-12-01
Series:Trikonomika
Online Access:https://journal.unpas.ac.id/index.php/trikonomika/article/view/1776
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author Rika Mauliana
Abd. Jamal
Suriani Suriani
author_facet Rika Mauliana
Abd. Jamal
Suriani Suriani
author_sort Rika Mauliana
collection DOAJ
description This study was aimed to analyze the relationship of long-term and short-term equilibrium between exchange rates and inflation on exports in ASEAN-8 countries (Brunei Darussalam, Laos, Indonesia, Malaysia, Singapore, Philippines, Vietnam and Thailand) by using analysis model with the Autoregressive Distributed Lag (ARDL) panel from the period 1990 to 2017. The model selection was based on long-term and short-term capabilities with different stationary levels. The results revealed that in long-term the exchange rate and inflation had a dominant influence on export activities in ASEAN-8 countries, while inflation had a dominant influence on exports in short-term. This result proved that inflation had a large influence on the growth of the trade stability, if the cost of products and services continuously increased in the market mechanism, it will result in the increased public consumption. The excess liquidity in the market triggered the consumption or speculation which resulted in the non-compliance products distribution and the decline in currency value continuously.
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spelling doaj.art-932a0f2404ae466d90124f192abff3522022-12-22T01:24:04ZengUniversitas PasundanTrikonomika1411-514X2355-77372020-12-01192818610.23969/trikonomika.v19i2.17761776EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8Rika Mauliana0Abd. Jamal1Suriani Suriani2FEB UnsyiahFEB UnsyiahUniversitas Syiah KualaThis study was aimed to analyze the relationship of long-term and short-term equilibrium between exchange rates and inflation on exports in ASEAN-8 countries (Brunei Darussalam, Laos, Indonesia, Malaysia, Singapore, Philippines, Vietnam and Thailand) by using analysis model with the Autoregressive Distributed Lag (ARDL) panel from the period 1990 to 2017. The model selection was based on long-term and short-term capabilities with different stationary levels. The results revealed that in long-term the exchange rate and inflation had a dominant influence on export activities in ASEAN-8 countries, while inflation had a dominant influence on exports in short-term. This result proved that inflation had a large influence on the growth of the trade stability, if the cost of products and services continuously increased in the market mechanism, it will result in the increased public consumption. The excess liquidity in the market triggered the consumption or speculation which resulted in the non-compliance products distribution and the decline in currency value continuously.https://journal.unpas.ac.id/index.php/trikonomika/article/view/1776
spellingShingle Rika Mauliana
Abd. Jamal
Suriani Suriani
EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8
Trikonomika
title EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8
title_full EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8
title_fullStr EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8
title_full_unstemmed EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8
title_short EXPORT ANALYSIS: AUTHORITY OF INFLATION AND EXCHANGE RATE IN ASEAN-8
title_sort export analysis authority of inflation and exchange rate in asean 8
url https://journal.unpas.ac.id/index.php/trikonomika/article/view/1776
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AT surianisuriani exportanalysisauthorityofinflationandexchangerateinasean8