IDEAS home Printed from https://ideas.repec.org/a/ids/ijepee/v13y2020i2p85-106.html
   My bibliography  Save this article

Impact of exchange rates on exports from Indonesia's sub-national economies: an empirical analysis

Author

Listed:
  • Khee Giap Tan
  • Mulya Amri
  • Nursyahida Ahmad

Abstract

This paper presents an examination of the impact of Indonesia's cost competitiveness, broadly represented by the country's real effective exchange rate (REER), on the value of exports from Indonesia's provinces. Our focus on Indonesia is intended to fill the knowledge gap on the world's 16th largest economy and fourth most populous country, where decentralisation efforts have resulted in increasing exports from its peripheral regions. Using panel fixed-effects model on provincial exports data covering 2000 to 2013, we find that exchange rate depreciation is positively and significantly associated with provincial exports, and exchange rate volatility tends to be negatively associated with exports. This implies that the export performance of a province depends upon not just managing cost competitiveness through the exchange rate regime but also other economic considerations such as the relative competitiveness of the provinces.

Suggested Citation

  • Khee Giap Tan & Mulya Amri & Nursyahida Ahmad, 2020. "Impact of exchange rates on exports from Indonesia's sub-national economies: an empirical analysis," International Journal of Economic Policy in Emerging Economies, Inderscience Enterprises Ltd, vol. 13(2), pages 85-106.
    • Handle: RePEc:ids:ijepee:v:13:y:2020:i:2:p:85-106
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=107927
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijepee:v:13:y:2020:i:2:p:85-106. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=219 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.