Jurnal Ekonomi Malaysia
52 (1) 2018 57 – 66
Faculty of Mathematics and Natural Sciences
Syiah Kuala University
Banda Aceh
INDONESIA
Faculty of Mathematics and Natural Sciences
Syiah Kuala University
Banda Aceh
INDONESIA
Abstract
This study empirically investigates the dynamic interdependencies of the Indonesian Rupiah (IDR) with the ASEAN, European, and Japanese forex markets. Using daily nominal exchange rates of Indonesia, Thailand, Malaysia, Singapore, the Philippines, Europe, and Japan spanning from January 1, 2008 to December 31, 2015, the study employs the impulse response functions and variance decomposition analysis based on the vector autoregression method. The study documented that the IDR more responded to innovations in the forex market of Singapore as compared to other ASEAN forex markets. Additionally, the ASEAN forex markets were more interdependence with the forex markets of Japan rather than Europe. Since the forex markets become more interdependent both regionally and internationally, thus it needs for policy coordination among the countries to mitigate the impact of forex fluctuations if these countries are to grasp the benefits of greater forex markets’ interdependence.
Keywords
Similar Articles
- Bantuan Kewangan dan Pembangunan Ekonomi di ASEAN: Hipotesis Kuznets
- Kesan Bantuan Kewangan Luar terhadap Indikator Pembangunan di ASEAN: Analisis Panel
- Kesan Geopolitik Institusi Multilateral dan Pelaburan Langsung Asing Malaysia ke Luar Negara
Bibliography
@article{abdmajid2018dynamic,
title={Dynamic Interdependence of the Indonesian Rupiah with the ASEAN and the World Largest Forex Markets},
author={Abd. Majid, M. Shabri and Sofyan, Hizir and Rahmanda, Moh. Rizky},
journal={Jurnal Ekonomi Malaysia},
volume={52},
number={1},
pages={57—66},
}
Receive updates when new articles are published.