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The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia

Author

Listed:
  • Manat Rahim

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,)

  • Pasrun Adam

    (Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia.)

  • Heppi Millia

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,)

  • La Ode Suriadi

    (Department of Economics, Universitas Halu Oleo, Kendari, Indonesia,)

  • La Ode Ode Saidi

    (Department of Mathematics, Universitas Halu Oleo, Kendari, Indonesia.)

Abstract

This article reports the results of a study examining the causal relationship between fuel consumption, exchange rates, and economic growth in Southeast Sulawesi, Indonesia. The data used are annual time series data ranging from 1988 to 2016. The estimation results of the VAR model and the Granger causality test indicate that the causal relationship that occurs is only a short-term causality, namely from fuel consumption to economic growth.

Suggested Citation

  • Manat Rahim & Pasrun Adam & Heppi Millia & La Ode Suriadi & La Ode Ode Saidi, 2021. "The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 1-6.
    • Handle: RePEc:eco:journ2:2021-06-1
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    References listed on IDEAS

    as
    1. Pasrun Adam & Pasrun Adam & Rosnawintang Rosnawintang & Ambo Wonua Nusantara & Abd Aziz Muthalib, 2017. "A Model of the Dynamic of the Relationship between Exchange Rate and Indonesia's Export," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 255-261.
    2. Acaravci, Ali & Ozturk, Ilhan, 2012. "Foreign Direct Investment, Export and Economic Growth: Empirical Evidence from New EU Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 52-67, June.
    3. Adam, P. & Rianse, U. & Harafah, Ĺ. M. & Cahyono, E. & Rafiy, M., 2016. "A Model of the Dynamics of the Effect of World Crude Oil Price and World Rice Price on Indonesia’s Inflation Rate," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 8(1), pages 1-10, March.
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    Cited by:

    1. Desta Bati Nuno, 2022. "Analysis of the Causal Relationship between Precious Metal Prices and Inflation: Evidence from Ethiopia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 77-88.

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    More about this item

    Keywords

    fuel consumption; exchange rate; economic growth; VAR model; Granger causality test.;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F31 - International Economics - - International Finance - - - Foreign Exchange

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