How responsive are Indonesia's bilateral inpayments and outpayments to real depreciation of Rupiah?

Mohsen Bahmani-Oskooee, Hanafiah Harvey

Research output: Contribution to journalArticle

2 Scopus citations

Abstract

Purpose: The purpose of this paper is to investigate the sensitivity of Indonesia's inpayments and outpayments to currency depreciation on a bilateral basis. Design/methodology/approach: The methodology used is based on the bounds testing approach. Findings: It is found that while real depreciation of Rupiah has short-run effects in a majority of the cases, these effects last into the long-term in almost 50 percent of the cases. Surprisingly, almost all of the affected partners in the long run are found to be the Asian countries. Originality/value: The paper is very original in that no one has looked at this issue before.

Original languageEnglish (US)
Pages (from-to)133-143
Number of pages11
JournalStudies in Economics and Finance
Volume29
Issue number2
DOIs
StatePublished - Jun 1 2012

All Science Journal Classification (ASJC) codes

  • Economics, Econometrics and Finance(all)

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