The long-run and short-run impacts of investment, export, money supply, and inflation on economic growth in Indonesia

Kurniasih, Erni Panca

doi:10.14414/jebav.v22i1.1589

Cited by 8 publications

(8 citation statements)

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“…Shahbaz et al [37] confirmed the validity of the ELG hypothesis, both in the short run and the long run, for Pakistan. Kurniasih [38] derived a similar finding for Indonesia. Liang and Zuradi [39] found a positive long-run relationship between export and economic growth for Malaysia, and [40] found supporting evidence for the case of Vietnam.…”

Section: The Export-led Growth Hypothesis and Its Empirical Supportsupporting

confidence: 63%

Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries

2021

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The per-capita demand of fish and fish products, and paired to it, their production and trade, have substantially increased during the last few decades. For many developing countries these developments open a channel for sustainable economic progress. Against this background, this article investigates whether fish exports Granger-cause long-run economic growth of the agricultural sector (“fish export-led growth”) in a panel of eight South and Southeast Asian countries. A dynamic panel autoregressive distributed lag (ARDL) model is estimated based on data for the years 2000 to 2018. The results indicate that fish exports have a significant positive impact on the growth of the agricultural sector in the long run. These findings apply to both the lower- and the upper-middle-income countries included in the analysis. Long-run Granger causality tests within a panel vector error correction model indicate that agricultural value added per worker reacts to deviations from the long-run equilibrium, whereas fish exports per worker are weakly exogenous. Thus, the paper finds supporting evidence for fish export-led growth. The paper concludes with some thoughts about how this finding can help policymakers in their attempt to induce sustainable agricultural development to eradicate poverty and to enhance living standards.

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Section: The Export-led Growth Hypothesis and Its Empirical Supportsupporting

confidence: 63%

Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries

2021

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“…However, if the communities do not demand the loans as expected, the expansionary monetary policy will not assist the growth rates (Kaplan, 2017). As per Kurniasih (2019), a positive relationship has been examined between the rate of interest and the money supply. Hence, when the expansionary monetary policy efforts are taken in relation to the selected contexts of the study, it could be identified that the interest rates are increased in the economies making the people motivated to take less loans.…”

Section: Analysis and Discussionmentioning

confidence: 99%

Impact of Inflation Targeting Policy Framework of Countries between the Period of 2009-2019

Rathnayake¹

2021

VJM

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Today, many countries in the world tend to choose Inflation Targeting Monetary Policy Framework, in which context it has become a matter of debate whether inflation or economic growth is driven by monetary expansions. The common acceptance is that inflation is created by the continuous rise in the money supply which is strongly proved through the economic theories forwarded by Karl Marx, Irvin Fisher and Friedman. The main aim of the study is to examine the relationship between money supply and economic growth under a broad phenomenon by utilizing the countries with inflation targeting policies in action. The time-series data have been collected from different countries that exercise inflation targeting from 2009 to 2019 and the sample included 39 countries from all over the globe, both from developed and developing categories. The utilized Autoregressive Distribution Lag (ARDL) model forwarded the results suggesting that there is a significant negative relationship between the economic growth and money supply in the long run while no relationship has been observed in the short run.

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“…In a study for Indonesia, Kurniasih (2019) tested the effect of money supply on economic growth along with exports, investment and inflation in Indonesia. He applied regression technique as well as error correction mechanism to examine effect of stated factors on economic growth.…”

Section: Literature Review 21 Real Money Balances and Outputmentioning

confidence: 99%

“…In economics, the Cobb-Douglas production function is widely used to represent the relationship of an output to inputs. Following the framework established by Sinai and Stokes (1972) for the US economy and studies in context of developing countries like Khan and Ahmad (1985) and Kurniasih (2019) in their estimation of real money balances in the production process to trigger out the influence of money balances on output. Likewise, closely following the studies carried out such as Feridun, Olusi, and Folorunso (2006); Kilicarslan and Dumrul (2018); Maqbool-ur-Rahman (2015) and Ali et al (2020) who determined effect of globalization on economic growth along with labor and capital; this study incorporated real money balances and globalization in production function.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Analyzing the Role of Money Balances as a factor of Output in Context of Globalization: A Case Study of Bahrain

Elayah

Mohammed

et al. 2021

iRASD J. Eco.

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The nexus between money and output is regaining attention from researchers after recent global financial crisis. Likewise, globalization-output nexus also grabs the attention of researchers. Henceforth, the study is design to analyze the effect of real money balances and globalization on output by incorporating real money balances and globalization in Cobb-Douglas production function. Time series data has been analyzed and all variables of the study are tested for order of integration through unit root test. So, it is found that that all variables are integrated of first order so one cannot apply ordinary least squares. This is the reason that Johansen cointegration technique and the cointegration regression, fully modified least squares, are applied for long run relationship and long run estimates respectively. The cointegration technique confirmed long run relationship among variables thus; it is concluded that real money balances and globalization are important determinants of output in the Kingdom of Bahrain. Furthermore, results of the study show that real money balances and globalization are found to have positive and significant effect on output along with labor and capital. Thus, this study concludes that real money balances and globalization are important factors of output in the Kingdom of Bahrain and monetary authorities should consider real money balances and globalization in policy making for sustainable economic growth.

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The long-run and short-run impacts of investment, export, money supply, and inflation on economic growth in Indonesia

Cited by 8 publications

References 0 publications

Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries

Fish Exports and the Growth of the Agricultural Sector: The Case of South and Southeast Asian Countries

Impact of Inflation Targeting Policy Framework of Countries between the Period of 2009-2019

Analyzing the Role of Money Balances as a factor of Output in Context of Globalization: A Case Study of Bahrain

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