Open AccessDETERMINANT OF INDONESIAN MANUFACTURING OUTPUT
Author(s) -
Arga Prati Dhina,
Wasiaturrahma Wasiaturrahma
Publication year - 2018
Publication title -
jde (journal of developing economies)
Language(s) - English
Resource type - Journals
eISSN - 2541-1012
pISSN - 2528-2018
DOI - 10.20473/jde.v3i1.8686
Subject(s) - indonesian , inflation (cosmology) , estimation , manufacturing sector , foreign direct investment , economics , inflation rate , manufacturing , econometrics , monetary economics , error correction model , interest rate , macroeconomics , business , cointegration , marketing , philosophy , linguistics , physics , management , theoretical physics
The role of manufacture in Indonesia influence the economic growth. This research aims to observe and analyze influencing factors of manufacturing sector output in Indonesia. The research method used Error Correction Model (ECM) at period 2005 in 1stquartal – 2017 in 4thquartal. This research used secondary data from Statistik Ekonomi dan Keuangan Indonesia (SEKI) and Federal Reserves. The results of the study show that in long term estimation lend interest rate and inflation have negative and significant impact, whereas FDI has positive and significant impact towards manufacturing sector output. Otherwise, in short term estimation show that lend interest rate has negative and significant impact, while inflation and FDI have no significant impact towards manufacturing sector output.