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The Impact of Oil Price and Other Macroeconomic Variables on The Islamic and Conventional Stock Index in Indonesia

Author

Listed:
  • Muhammad Syafii Antonio

    (Tazkia Islamic University College, Jawa Barat, Indonesia)

  • Aam S. Rusydiana

    (Sharia Economics Applied Research and Training, Indonesia,)

  • Wahyu Sugeng Imam Soeparno

    (Universitas Sumatera Utara, Indonesia,)

  • Lina Nugraha Rani

    (Faculty of Economic and Business, Airlangga University, Indonesia)

  • Wahyu Ario Pratomo

    (Universitas Sumatera Utara, Indonesia,)

  • Abdillah Arif Nasution

    (Universitas Sumatera Utara, Indonesia,)

Abstract

The Islamic capital market plays an important role in the growth of the economy in Indonesia. During its development, the performance of the stock index in a country is often influenced by other stock indices in other countries. This study tries to analyze dependance of macroeconomic variable towards JII and IHSG price, using Autoregression Distributed Lag (ARDL). The results show that the Consumer Price Index (CPI) and exchange rate (EXC) significantly affect the movement of the JII and IHSG price index. This indicates that the movement of the JII and IHSG index in the short term is influenced by domestic production and exchange rate. Furthermore, the results of the research show a little uniqueness in the crude oil price (COP) variable.

Suggested Citation

  • Muhammad Syafii Antonio & Aam S. Rusydiana & Wahyu Sugeng Imam Soeparno & Lina Nugraha Rani & Wahyu Ario Pratomo & Abdillah Arif Nasution, 2021. "The Impact of Oil Price and Other Macroeconomic Variables on The Islamic and Conventional Stock Index in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 418-424.
    • Handle: RePEc:eco:journ2:2021-05-47
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    ARDL; Macroeconomic; Oil price; Islamic stock;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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