Foreign Exchange Reserves in Asia and Its Impact on Import Demand

Arize, Augustine C.; Malindretos, John

doi:10.5539/ijef.v4n3p21

Cited by 24 publications

(23 citation statements)

References 33 publications

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“…The foreign exchange reserve variable shows a positive and significant effect on Indonesian coal exports in 2008-2018. This foreign exchange reserve variable is consistent with theories and hypotheses, which state that foreign exchange reserves positively and significantly affect Indonesian coal exports (Arize & Malindretos, 2012). This result shows that Foreign exchange reserves are an important factor in import demand for Indonesia.…”

Section: Discussionsupporting

confidence: 89%

The Determinants of Indonesia’s Coal Exports Demand to Six Asian Countries

Susanto

Admi

2021

JDE

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Coal is one of the most needed commodities globally because of its power plants and industrial machinery. According to World Coal Institute (2018), the world coal trade is dominated by several producing countries, Indonesia (ranked 2nd with 28.21 percent). Indonesia's coal exports are influenced by determinants of demand from export destination countries. This study will test at least four demand determinants in destination countries for their effects on Indonesian exports: exchange rate, foreign exchange reserves, population, and coal production. The study used six Asian countries (Japan, South Korea, India, Thailand, Philippines, and Malaysia) over 2008-2018. The methodology used is multiple linear regression with a series of chow and Hausman tests. Each variable has been tested by t-test (partial) and f test (simultaneous), and R2 test to analyze the percentage of the influence of the model on the dependent variable. This study revealed that the variable foreign exchange reserves and population growth of six Asian countries have a significant positive effect on Indonesia's coal export. Simultaneously, the exchange rate and coal production of the destination countries were not proven to have a negative impact but positively affected coal export. All variables have a significant and partially significant effect so that the model can explain the coal export variable at 93.08 percent (Adjust R-squared).Keywords: Coal Export, Demand DeterminantsJEL Classification: C2, F1, Q31

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Section: Discussionsupporting

confidence: 89%

The Determinants of Indonesia’s Coal Exports Demand to Six Asian Countries

Susanto

Admi

2021

JDE

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“…Sultan (2011) said that in the long run, real imports in India are affected by real foreign exchange reserves, real income, and the relative prices of imports. The same research but in different regions was carried out by Arize and Malindretos (2012), stated that imports in India, Japan, Korea, Singapore and Thailand are affected by foreign exchange reserves, real income and relative import prices.…”

Section: Foreign Exchange Reservesmentioning

confidence: 92%

Demand and Strategy of Imports in Declining Foreign Exchange Reserves

Sri¹,

Puspitasari²,

Pujiati³

2020

IJEBA

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Purpose: The purpose of this study is to propose alternative ideas of import strategy related to the needs of imports to increase economic growth, compare with the availability of foreign exchange reserves. Design/Methodology/Appoach: This paper proposes possible alternative ideas for import strategies, after examining what factors influence imports. Policies at the international and regional levels are considered in formulating simple ideas for solving problems. Document analysis, as a form of qualitative research, is also used in this study. To answer the question, data from ASEAN countries in the 2012-2018 period were used, which were analyzed using panel data regression equations. Findings: We found that GDP and foreign exchange reserves (FER) have the highest influence on import demand compared to other variables, but the significance of FER is greater than of GDP. Because there is a downward trend in FER in several ASEAN countries, the paper proposes the use of a protective import strategy consisting of a strategy of cooperation (negotiation and renegotiation) and non-cooperation (unilateral decision) to maintain sustainable imports. Practical Implications: The decline in FER will have an impact on the country's ability to import. Protective strategies, both through cooperation and non-cooperation, can reduce the current account deficit. The protective strategy will also grow the domestic economy, starting from the growth of the domestic industry, reducing unemployment, increasing people's income.

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“…Bu hareket esas olarak, yerel paranın değerini sabitlemektir. Yabancı rezervler, uluslararası arenada olduğu kadar, gelecekteki makro politikaların tasarımında ve değerlendirilmesi açısından da önemli bir rol oynamaktadır (Arize, 2012). IMF'ye (2009) göre, döviz rezervleri, merkez bankalarının veya diğer para otoritelerinin döviz depolarıdır.…”

Section: Döviz Rezervi Ve Para Arzı İlişkisinin Teorik çErçevesiunclassified

Türkiye Cumhuriyeti Merkez Bankası Döviz Rezervinin Parasalcı Ödemeler Dengesi Yaklaşımıyla Analizi: RALS Birim Kök ve Eşbütünleşme Analizi

Tatar

2021

Dumlupınar Üniversitesi Sosyal Bilimler Dergisi

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ÖzDöviz rezervleri, uluslararası ödeme güçlükleri durumunda ülkelerin elinde bulundurduğu önemli dış varlıklardır. Özellikle son dönemde ülkeler için, gelecek güvensizliğini en aza indirip, güven telkin ettiği için daha önemli hale gelmiştir. Bu çalışmada, döviz rezervi ve para arzı arasında ilişki, Türkiye özelinde ele alınmıştır. Çalışmada, konu literatürdeki çalışmalardan farklı olarak, parasalcı ödemeler dengesi yaklaşımıyla ele alınmıştır. 2008:01-2019:12 döneminin ele alındığı çalışmada, ADF ve RALS-ADF birim kök testleriyle durağanlık incelemesi yapılmıştır. Değişkenlerin seviyede durağan olmadığının tespit edilmesinden sonra, EG ve RALS-EG eşbütünleşme testi yapılmıştır. Test sonuçlarına göre, değişkenler arasında uzun dönemli bir ilişkinin varlığı ortaya konulmuştur. Analizlerde karşılaştırma yapabilmek adına, ADF birim kök testi ve EG eşbütünleşme testlerine de yer verilmiştir. Değişkenlere ait tahmin sonuçlarından sonra, para arzında yaşanan artışın, teoriye uygun şekilde döviz rezervlerini arttırdığı sonucuna ulaşılmıştır.

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Foreign Exchange Reserves in Asia and Its Impact on Import Demand

Cited by 24 publications

References 33 publications

The Determinants of Indonesia’s Coal Exports Demand to Six Asian Countries

The Determinants of Indonesia’s Coal Exports Demand to Six Asian Countries

Demand and Strategy of Imports in Declining Foreign Exchange Reserves

Türkiye Cumhuriyeti Merkez Bankası Döviz Rezervinin Parasalcı Ödemeler Dengesi Yaklaşımıyla Analizi: RALS Birim Kök ve Eşbütünleşme Analizi

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