The Causal Relationship Between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia

Rahim, Manat; Adam, Pasrun; Millia, Heppi; Suriadi, La Ode; Saidi, La Ode Ode

doi:10.32479/ijeep.11518

Cited by 2 publications

(3 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The results follow the theory of Krugman (1999). The findings are in line with Rahim et al (2020), Sharma and Mishra (2015) and Baharumshah (2001).…”

Section: Discussionsupporting

confidence: 87%

See 1 more Smart Citation

Does exchange rate volatility influence import commodities of India-US? Evidence from ARDL approach

Gupta

Varshney

2021

SAJBS

View full text Add to dashboard Cite

PurposeThe aim the study is to explore the impact of real exchange rate volatility and other macroeconomic variable such as price of import, industrial production and real exchange rate on 45 import commodities, considering global financial crisis period on India's import from the US. The empirical analysis at disaggregate level of import indicates the existence of both short-run and long-run effect in one-third importing commodities. The results show both positive and negative effect and causality among variables.Design/methodology/approachThe study uses E-GARCH model to gage the real exchange rate volatility, an autoregressive distributive lag (ARDL) bound test technique to discover the adequate short- and long-run relationships and Toda-Yamamoto causality method to analyze the causality among variables. The study uses the time period from 2002:M09 to 2019:M06.FindingsThe empirical analysis at disaggregate level of import indicates the existence of both short-run and long-run effect in one-third importing commodities. The results show both positive and negative effects and causality among variables.Practical implicationsThe finding of the study suggests that macroeconomic variables have significant role and could be important to undertake the small and medium scale industries in policymaking. Government may need to make decision for micro, small and medium enterprises (MSMEs) as their performance can bring change in the trade to compete globally by increasing and controlling the price of the import and defending the domestic competitiveness.Originality/valueThe study uses additional variable namely price of import and includes the global financial crisis period to measure dampening effect on each commodity by using robust econometric technique in context of emerging nation like India.

show abstract

“…The results follow the theory of Krugman (1999). The findings are in line with Rahim et al (2020), Sharma and Mishra (2015) and Baharumshah (2001).…”

Section: Discussionsupporting

confidence: 87%

“…The import trade of the Norwegian is more dependent on these three continents Asia and Oceania, North, Central America and Europe. There are very limited paper showing the causality among the exchange rate volatility, macroeconomic variable and trade (Choudhry, 2005; Subiyakto and Algifari, 2016; Rahim et al , 2020).…”

Section: The Related Literaturementioning

confidence: 99%

Does exchange rate volatility influence import commodities of India-US? Evidence from ARDL approach

Gupta

Varshney

2021

SAJBS

View full text Add to dashboard Cite

show abstract

“…After the stationarity test, the next step was to perform a test for co-integration between inflation, gold price, platinum price, and silver price. This kind of test is carried out if endogenous variables under study are not stationary at the level but stationary at the first difference (Rahim et al, 2021). The co-integration test used was the Johansen co-integration test developed by (Johansen, 1988).…”

Section: Co-integration Testmentioning

confidence: 99%

Analysis of the Causal Relationship between Precious Metal Prices and Inflation: Evidence from Ethiopia

Desta¹

2022

IJEBA

View full text Add to dashboard Cite

Purpose: Keeping inflation stability is the main challenge in Ethiopia. One of the reasons for this could be fluctuation in commodity price specifically, precious metal price. Therefore, this study aims to analyze the causal relationship between precious metal prices and inflation in Ethiopia. Design/Methodology/Approach: The monthly time series data from January 2000 up to April 2021 was used. The Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP) tests of unit root were employed to examine whether the series became stationary or not at level. The Johanson co-integration test was implemented to determine the co-integration of the variables. After stationarity and integration tests were performed, the Vector Autoregressive model (VAR) was employed to estimate the model. After model estimation, VAR Granger causality was tested to check the causal relationship between the variables. Findings: ADF and PP test indicate that variables under study are stationary after the first difference. The trace statistic and the maximum eigen-value test of co-integration showed that there is no co-integrating vector at 0.05 level of significance. VAR estimation result shows that one and two-period lag of gold price, one and two-period lag of silver price, one and two-period lag of platinum price, and one-period and two-period lag of CPI had a statistically significant effect on inflation (CPI) in the short-run. The granger causality analysis results indicated that there was a statistically significant causality between CPI and platinum prices. Practical Implications: These results may be used to guide policymakers in terms of where emphasis should be given regarding inflation instability in Ethiopia. Originality/Value: The results of this study revealed that inflation and precious metal price have short-run causal relationship and no prior result that could be aligned or contrary to this result in Ethiopia.

show abstract

The Causal Relationship Between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia

Cited by 2 publications

References 15 publications

Does exchange rate volatility influence import commodities of India-US? Evidence from ARDL approach

Does exchange rate volatility influence import commodities of India-US? Evidence from ARDL approach

Analysis of the Causal Relationship between Precious Metal Prices and Inflation: Evidence from Ethiopia

Contact Info

Product

Resources

About