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.
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)