A Methodical Approach to Determining the Level of Development of Digital Trade in Global Markets

The foreign reserves sufficiency is important to maintain macroeconomic stability. The main objective of this paper is to model the behaviour of the central bank in accumulating the foreign reserves in the case of Indonesia. Unlike the previous empirical studies, this paper disaggregates the components of foreign reserves into foreign currency, securities, gold, and special drawing rights. This paper relies on the Almost Ideal Demand System combined with the Error Correction Model. The estimation result for monthly data over the period 2010(1)-2020(12) reveals that the own-price coefficients are negative and statistically significant which is consistent with the standard theory of demand. While the foreign currency-securities pairwise is substitutive, the foreign currency-gold and the foreign currency-special drawing rights pairwise are complementary or even independent. However, the wealth effect is inelastic except for securities reserves. These results imply that the central bank of Indonesia can re-balance its reserves. The securities holding which have the highest proportion of foreign reserve scan be switched to foreign currency, gold, and/or special drawing rights. The rebalancing measures would remain having an optimal level of foreign reserves holding in terms of its opportunity cost. Therefore, the monetary authority can conduct a further macroeconomic stabilisation without substantially losing the returns.

Section: Literature Reviewmentioning

confidence: 99%

Modelling the Demand for Indonesia’s Foreign Reserves

Kuncoro,

Pardede

2024

“…According to this theory, the more widely a currency is used and accepted in international transactions, the more attractive it becomes for other participants to use it as well. This is because using a widely accepted currency reduces transaction costs and provides greater liquidity, making it more convenient and efficient for international trade and finance (Shevchenko, 2023).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

De-Dollarisation in International Payments: Trend or Fiction

Todorova,

Moraliyska,

Raycheva

2024

The present research paper is focused the widely debated topic related to de-dollarization. It examines the trend of de-dollarization to check if the statements that the dollar is losing its weight and is about to lose its leading position in international trade payments are substantiated. Firstly, the theoretical framework behind the dollarization is explored. Secondly, the factors believed to be the basis of the de-dollarization process have been identified and analyzed, which are related to: geopolitical processes, changes in international payments policy in some BRICS countries, changes in international trade, etc. A performed analysis of the currency turnover in international trade, based on data from official sources, was made through forecast regression, which predicts the development of the share of the dollar in international payments. A correlation matrix was also calculated, showing the correlation links between the dollar and the other leadng currencies. The hypothesis, which is confirmed by the practical research, is that the de-dollarization process is proceeding slowly and uncertainly, and will continue to develop at a low pace leading to insignificant changes in the structure of the currency composition of international payments in the short and medium term. Further research could further explore each of the factors that could lead to a real dedollarisation trend in international payments.

“…This shopping method can better meet consumers' personalized shopping needs and has the characteristics of diversity and portability (Abdelsalam et al, 2020;Parfenova and Romashova, 2020;Sloot, 2021;Matviienko-Biliaieva et al, 2023). Online delivery on self-media platforms has also become a new way for people to purchase products through the Internet (He et al, 2021;Tsao et al, 2019;Shevchenko, 2023). Rohanaraj, (2023) found that cultural and social factors have a useful influence on consumer purchasing behavior towards consumer products.…”

Section: Introductionmentioning

confidence: 99%

Research on the Analysis and Impact of Internet Celebrity Economy on Consumers’ Irrational Buying Behavior in the Big Data Environment

Ke,

Wel

2023

In the context of big data, the internet celebrity economic marketing model has gradually become one of the mainstream online marketing models. Internet celebrities use their special influence and characteristics of the times to bring revolutionary changes to product promotion. This phenomenon carries more economic value and has significant social impact. At the same time, the development of the Internet celebrity economy has triggered concerns that irrational consumer behaviour may disrupt the e-commerce market. This paper investigates the influence of the Internet celebrity economy on consumers’ irrational purchase behaviour in this environment. To do so, the K-means clustering method is utilized to collect data on both internet celebrity economies and consumers’ irrational buying behaviour. The study develops a research model with the independent variables of internet celebrities’ professional degree, credibility, and fan attraction, and the dependent variable of consumers’ buying behaviour, with consumers’ buying sentiment serving as an intermediary variable. The empirical analysis demonstrates that the Internet celebrity economy significantly impacts consumers’ irrational purchase behaviour, with higher levels of professionalism, credibility, and fan attraction among internet celebrities associated with greater likelihoods of irrational consumer purchasing. Based on these findings, two strategies are proposed to mitigate irrational purchasing behaviour: improving the professional quality of internet celebrities and promoting rational consumer buying practices.