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

Author

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  • Mohsen Bahmani‐Oskooee
  • Hanafiah Harvey

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.

Suggested Citation

  • Mohsen Bahmani‐Oskooee & Hanafiah Harvey, 2012. "How responsive are Indonesia's bilateral inpayments and outpayments to real depreciation of Rupiah?," Studies in Economics and Finance, Emerald Group Publishing Limited, vol. 29(2), pages 133-143, June.
    • Handle: RePEc:eme:sefpps:v:29:y:2012:i:2:p:133-143
    DOI: 10.1108/108s67371211229145
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    References listed on IDEAS

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    2. Paresh Kumar Narayan & Seema Narayan & Biman Chand Prasad & Arti Prasad, 2007. "Export‐led growth hypothesis: evidence from Papua New Guinea and Fiji," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(4), pages 341-351, September.
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    4. Mohsen Bahmani‐Oskooee & Scott W. Hegerty, 2007. "Exchange rate volatility and trade flows: a review article," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(3), pages 211-255, August.
    5. Mohsen Bahmani-Oskooee & Claire Economidou & Gour Gobinda Goswami, 2005. "How sensitive are Britain's inpayments and outpayments to the value of the British pound," Journal of Economic Studies, Emerald Group Publishing, vol. 32(5), pages 455-467, October.
    6. Mohsen Bahmani-Oskooee & Janardhanan Alse, 1994. "Short-Run versus Long-Run Effects of Devaluation: Error-Correction Modeling and Cointegration," Eastern Economic Journal, Eastern Economic Association, vol. 20(4), pages 453-464, Fall.
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