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Analysis of Crude Oil Price and Exchange Rate Volatility on Macroeconomic Variables (Case Study of Indonesia as Emerging Economic Country)

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  • Vietha Devia SS

    (School of Economics, Huazhong University of Science and Technology, Wuhan, China Faculty of Economics and Business, Universitas of Brawijaya, Malang, Indonesia)

Abstract

The purpose of this study to investigate the crude oil prices and exchange rates volatility on Indonesia’s domestic gasoline price and macroeconomic variables such as Consumption and Gross Domestic Product (GDP). The author took case study in Indonesia as emerging country and net oil imported country. The research was conducted during 2010 to June 2018. In 2013 and 2014, there were significant changes on crude oil prices and exchange rate. Therefore the research period is considered appropriate to determine impacts due to variable changes. The research method used path analysis. The data used was time series from 2010 to June 2018. The result indicate that crude oil prices and exchange rates have a significant positive effect on Indonesian Gasoline prices, Consumption, and GDP. As the R2 obtained was 99.7%. Therefore it indicates that the utilised model can explain variable information up to 99.7%.

Suggested Citation

  • Vietha Devia SS, 2019. "Analysis of Crude Oil Price and Exchange Rate Volatility on Macroeconomic Variables (Case Study of Indonesia as Emerging Economic Country)," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 5(5), pages 257-271.
    • Handle: RePEc:apa:ijbaas:2019:p:257-271
    DOI: 10.20469/ijbas.5.10001-5
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