Open AccessThe Impact of Final Demand arld Prices on Indonesia's Total - Import: Cointegration and Error Correction Model Analysis
Author(s) -
Isbandriyati Mutmainah
Publication year - 2009
Publication title -
jurnal ekonomi dan pembangunan indonesia
Language(s) - English
Resource type - Journals
eISSN - 2406-9280
pISSN - 1411-5212
DOI - 10.21002/jepi.v9i2.161
Subject(s) - cointegration , economics , error correction model , econometrics , indonesian , term (time) , variable (mathematics) , investment (military) , short run , macroeconomics , mathematics , mathematical analysis , linguistics , philosophy , physics , quantum mechanics , politics , political science , law
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.