Exchange Rate Volatility and Export Volume: The Case of Indonesia and its Main Trading Partners

Safuan, Sugiharso

doi:10.35808/ersj/692

Cited by 12 publications

(9 citation statements)

References 17 publications

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“…The aim is to maximize profit through overseas sales (exports). This finding in line with that of Falianty (2015) who found that the elasticity values of the two variables are 0.914 and Safuan (2017) which is around 0.014-0.031. This finding supports the results of Dekle et al (2010) which showed that the elasticity value is between 0.5-0.7.…”

Section: External Variablessupporting

confidence: 92%

Real exchange rate undervaluation and Indonesia’s manufacturing exports

Rasbin¹,

Ikhsan

Gitaharies

et al. 2021

Cogent Economics & Finance

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This study analyzes the impact of real exchange rate undervaluation on Indonesia's manufacturing exports in 22 manufacturing industries throughout 1990-2015. The study was undertaken by modifying a partial equilibrium model of monopolistic competition for exporting firms and using the augmented mean group (AMG) method. This study confirms that the real exchange rate, both misalignment and changes in levels (depreciation/appreciation), are insignificant in affecting Indonesia's manufacturing exports. In addition, this study finds that manufactured exports are significantly determined by the manufactured exports in the previous period, real interest rates, real wages, labor productivity, and firm growth. This finding indicates that the exchange rate manipulation policy is not an important factor in strengthening the competitiveness of Indonesia's manufacturing exports. We suggest policies that play more important roles in driving manufacturing exports are creating a competitive and conducive business climate, lowering domestic interest rates, and reforming the labor system.

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Section: External Variablessupporting

confidence: 92%

Real exchange rate undervaluation and Indonesia’s manufacturing exports

Rasbin¹,

Ikhsan

Gitaharies

et al. 2021

Cogent Economics & Finance

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“…However, the rubber sector is not the same because of the negative and significant impact that reduces demand in exporting. This result is explained by Ebadi & Ebad (2015) and Safuan (2017) that a country's exports depend on the economy of the destination country. So the demand will continue to increase for certain commodities.…”

Section: Price the Main Condition For Coffee Exports An Analysis With Good News And Bad News Approachesmentioning

confidence: 65%

Price the Main Condition for Coffee Exports an Analysis With Good News and Bad News Approaches in Indonesia

Anwar

Mariyudi

2021

IJEBAS

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This study aims to analyze the effect of prices and income of the United States of America on 5 superior commodities in Indonesia and see between good news and bad news. The research data uses quarterly data from 2005Q1-2017Q4. The research model uses the TGARCH model. The results show that the income per capita of the United States, the previous price per commodity and previous exports have a positive and significant influence on commodity exports. However, the effect of per capita income on superior rubber commodities was found to have a negative and significant effect. This indicates an increase in foreign income will reduce rubber exports. Extreme volatility shocks occur in palm oil and other agriculture. High volatility is only cocoa commodity. Meanwhile, for coffee and rubber, the volatility is low. 3 commodities that have symmetrical information are coffee, cocoa, and other agriculture. Asymmetric information on palm oil and rubber commodities.

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“…On the other hand, exchange rate volatility had a negative impact on the overall trade volume in India and Pakistan in both the short-run and long-run respectively. Safuan (2017) in another study utilized the Seemingly Unrelated Regression (SUR) methodology and data from 1996-2014 to investigate the effect of exchange rate volatility on exports of Indonesia to Japan, China and the United States (US) employing aggregate and disaggregated data. The findings showed that exchange rate volatility exerted a negative impact on exports.…”

Section: Empirical Literature 211 Empirical Literature For the Rest Of The Worldmentioning

confidence: 99%

Exchange Rate Volatility and Exports: The Nigerian Scenario

Duru

Eze

Saleh

et al. 2022

5004

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This paper investigated the impact of exchange rate volatility on exports in Nigeria utilizing data from 2005Q1 to 2020Q4. The ARCH model and its extensions of GARCH, TARCH and EGARCH models and nominal effective exchange rate were employed to measure exchange rate volatility. The Autoregressive Distributed Lag Bounds test methodology was used to examine the short-run and long-run effects of exchange rate volatility on exports. The findings validated the presence of exchange rate volatility. In addition, the results revealed that exchange rate volatility had a negative and insignificant impact on exports. The study, thus, recommends that the government of Nigeria through the Central Bank of Nigeria should foster stable regimes of exchange rate through the implementation of appropriate policies of the exchange rate. Also, an enabling environment for the production of exportable goods should be provided by the government.

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Exchange Rate Volatility and Export Volume: The Case of Indonesia and its Main Trading Partners

Cited by 12 publications

References 17 publications

Real exchange rate undervaluation and Indonesia’s manufacturing exports

Real exchange rate undervaluation and Indonesia’s manufacturing exports

Price the Main Condition for Coffee Exports an Analysis With Good News and Bad News Approaches in Indonesia

Exchange Rate Volatility and Exports: The Nigerian Scenario

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