An Estimation of Chinese Renminbi Exchange Rate Impact on the Real Exports of Indonesia to the Us: is There a J-curve?

This paper seeks whether a J-Curve exists on the impact of changes in the Chinese Renminbi (RMB) exchange rates on bilateral exports of Indonesia to the United States (US), particularly in the long run. The Johansen cointegration procedures and Vector Error Correction Model (VECM) regression are applied. The cointegration test shows that there are long-term relationships amongst real GDP of US, Indonesian Rupiah (IDR), real exchange rates and volatility, and Chinese RMB real exchange rates. The result shows that the RMB exchange rate has a negative significant impact (substitution relationship) on Indonesian export to the US. The result also suggests a dissatisfaction of the Marshall-Lerner condition indicating the J-curve phenomenon does not exist

The Rise of China and Its Implication on Indonesia-united States Trade

The purpose of this study is to analyze the impact of Chinese renminbi exchange rate againts the United States (US) dollar, on the bilateral export of Indonesia to the US.Johansen cointegration test and Ordinary Least Square (OLS) regression are employed to examine one impact. This research is limited only in the long-run aspect. The Johansentest shows that there are long-run relationships amongs variables involved such as GDP, Real Exchange Rate (RER), RER Volatility, and dummy variables. Empirical test resultshows that there are positive significant impacts of the Chinese renminbi on the Indonesia's exports to the US, implying that the relationship between Chinese exports andIndonesia export are complementary in the US market

A Critical Review on Interest Rate as a Tool of Monetary Policy

Objectives: This research is aimed to critically review the relationship between interest rate and economic downturnMethods: Meta-analysis.Results: The existing monetary policy will always create higher inflation rate overtime triggering economic crisis in the long run. This is not merely about how the monetary authority strictly manages the supply and demand for money in the economy.Conclusion:This paper concludes that interest rate give negative contribution to the economic growth

Financial Inequality Nexus and Islamic Banking

This research aims to investigate the role of Islamic banking on income inequality reduction. The data of this research spans from 2010 to 2015 and investigate 49 Islamic banks from 13 selected countries. This study employs Panel data EGLS. To compare with other macroeconomic variable, this research involves GDP Per capita, and inflation as control variable. The estimation result shows that financial depth measured by total customer deposit to GDP ratio has negative relationship with income inequality. It perhaps occurs when there is an increase in income, customers prefer to save their additional income in Islamic banks. As customers increase their deposits, Islamic banks enlarge its financing on the prospect entrepreneurs. These entrepreneurs, afterwards, may expand their business and create new jobs. More new jobs offer means more people get stable income and as a result may reduce income inequality in the society