The Impact of Final Demand Arld Prices on Indonesia's Total - Import: Cointegration and Error Correction Model Analysis
January 1, 2009
Isbandriyati Mutmainah

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Abstract

This research is aimed to investigate the influence of final demand and price to Indonesian agregate imports in the long-run and short-run. We use analytical technique cointegration test Iohansen procedures for the long-term influence, and Error Correction Model to estimate the short-term influence, by using quarterly time series data period from_1980 to 2004. From the result of cointegration test and Error Correction Model we found that in the long-term, all of final demand components and price except private investment are important I in determining Indonesian agregate imports. The government expenditure variable has the highest influence, while in the short-term all of independent variables except private consumption are important in determining Indonesian agregate imports and foreign price variable has the highest influence.

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  • Eye Icon 250 views
  • Download Icon 54 downloads
Metrics Icon 250 views  //  54 downloads