ANALYSIS OF THE EFFECT OF REAL EXCHANGE RATE ON TRADING BALANCE CASE STUDY OF INDONESIA – JAPAN BILATERAL TRADE RELATIONS (MLR AND J-CURVE CONDITIONS)

dc.contributor.authorLaksono, Roosaleh
dc.contributor.authorEdison, Acep
dc.date.accessioned2021-02-20T04:37:07Z
dc.date.available2021-02-20T04:37:07Z
dc.date.issued2020
dc.description.abstractExchange rate is one of the important factors in an open economy considering that it has such a large influence on the trade balance and other macroeconomic variables. Besides, the exchange rate shows competitiveness in the international market. This study aims to analyze how much influence the exchange rate has on the trade balance of a case study on Indonesia's bilateral trade relations with its main trading partners, namely Japan. There is a phenomenon based on the data on the exchange rate of the rupiah against the Japanese yen (IDR / ¥), where the rupiah in the last 25 years (1995-2019) has depreciated against the Japanese yen, it should be based on the theory that if the domestic currency depreciates against the foreign currency then There was a continuous increase in the value of exports in accordance with the depreciation of the rupiah against the Japanese yen during this period and conversely there was a decrease in the value of imports so that there would be a trade balance surplus. The results showed that there has been a long term equilibrium relationship between the data variables in the study which was conducted from the results of the cointegration test. The results of the Marchel-Lerner test can be concluded that in the long run the MLR conditions are met (εEX + εIM> 1), which means that in the long run the real exchange rate has an effect on increasing exports and decreasing imports so that it affects the trade balance.en_US
dc.identifier.issn0038-111X
dc.identifier.urihttp://repository.widyatama.ac.id/xmlui/handle/123456789/12702
dc.language.isoenen_US
dc.publisherSolid State Technology Volume: 63 Issue: 3en_US
dc.subjectReal Exchange Rateen_US
dc.subjectTrade Balanceen_US
dc.subjectError Correction Methoden_US
dc.titleANALYSIS OF THE EFFECT OF REAL EXCHANGE RATE ON TRADING BALANCE CASE STUDY OF INDONESIA – JAPAN BILATERAL TRADE RELATIONS (MLR AND J-CURVE CONDITIONS)en_US
dc.typeArticleen_US
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