The dynamic relationship between money supply and economic growth
This study analyzes the influence of the financial sector to economic growth in Indonesia. The variables used are the country's financial sectors which are narrow money (M1), broad money (M2) and money the broadest money (M3), with an interest rate as a control variable. Economic growth is rep...
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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2015-10-01
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| Series: | Economic Journal of Emerging Markets |
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| Online Access: | https://www.hmj.accounting.uii.ac.id/JEP/article/view/4259 |
| _version_ | 1818116376460525568 |
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| author | Antoni Antoni |
| author_facet | Antoni Antoni |
| author_sort | Antoni Antoni |
| collection | DOAJ |
| description |
This study analyzes the influence of the financial sector to economic growth in Indonesia. The variables used are the country's financial sectors which are narrow money (M1), broad money (M2) and money the broadest money (M3), with an interest rate as a control variable. Economic growth is represented by Gross Domestic Product and producer price index. The analysis is performed using an Autoregressive Distributed Lag model (ARDL). The stability test is conducted using CUSUM test to see the changes in the structure and the effect of disruption to financial sector development relationship of economic growth. ARDL analysis results indicate that the development of the financial sector has a significant relationship with the country's economic growth. CUSUM analysis results suggest that the relationship of financial sector development-economic growth is stable against changes in economic structure.
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| first_indexed | 2024-12-11T04:21:32Z |
| format | Article |
| id | doaj.art-a5d626e75f404f6683fdcc29a20b5eb2 |
| institution | Directory Open Access Journal |
| issn | 2086-3128 2502-180X |
| language | English |
| last_indexed | 2024-12-11T04:21:32Z |
| publishDate | 2015-10-01 |
| publisher | Universitas Islam Indonesia |
| record_format | Article |
| series | Economic Journal of Emerging Markets |
| spelling | doaj.art-a5d626e75f404f6683fdcc29a20b5eb22022-12-22T01:21:05ZengUniversitas Islam IndonesiaEconomic Journal of Emerging Markets2086-31282502-180X2015-10-0172The dynamic relationship between money supply and economic growthAntoni Antoni0Department of Economics, Bung Hatta University, Padang, Indonesia This study analyzes the influence of the financial sector to economic growth in Indonesia. The variables used are the country's financial sectors which are narrow money (M1), broad money (M2) and money the broadest money (M3), with an interest rate as a control variable. Economic growth is represented by Gross Domestic Product and producer price index. The analysis is performed using an Autoregressive Distributed Lag model (ARDL). The stability test is conducted using CUSUM test to see the changes in the structure and the effect of disruption to financial sector development relationship of economic growth. ARDL analysis results indicate that the development of the financial sector has a significant relationship with the country's economic growth. CUSUM analysis results suggest that the relationship of financial sector development-economic growth is stable against changes in economic structure. https://www.hmj.accounting.uii.ac.id/JEP/article/view/4259Financial developmenteconomic growthinterest ratemoney supply |
| spellingShingle | Antoni Antoni The dynamic relationship between money supply and economic growth Economic Journal of Emerging Markets Financial development economic growth interest rate money supply |
| title | The dynamic relationship between money supply and economic growth |
| title_full | The dynamic relationship between money supply and economic growth |
| title_fullStr | The dynamic relationship between money supply and economic growth |
| title_full_unstemmed | The dynamic relationship between money supply and economic growth |
| title_short | The dynamic relationship between money supply and economic growth |
| title_sort | dynamic relationship between money supply and economic growth |
| topic | Financial development economic growth interest rate money supply |
| url | https://www.hmj.accounting.uii.ac.id/JEP/article/view/4259 |
| work_keys_str_mv | AT antoniantoni thedynamicrelationshipbetweenmoneysupplyandeconomicgrowth AT antoniantoni dynamicrelationshipbetweenmoneysupplyandeconomicgrowth |