Document Type
Article
Abstract
This paper analyzes the impact of the financial crisis in United States 2008 on Indonesia’s economy, by using Structural Vector Autoregressive (SVAR) model of 5 variables; Dow Jones Industrial Average, exchange rate, composite stock price index (IHSG), production index and trade tax income. The result shows that the US crisis affects the capital market in Indonesia where the Dow Jones Industrial Average plays greater role in explaining the IHSG, compared to Rupiah rate, production index and the trade income tax. In addition, the US crisis affects the volume and the trade income tax in Indonesia. These empirical results bring policy implication for Bappepam-LK as stock market regulator to intervene or to suspend the trade when the volatility exceeds the psychological threshold. It also emphasizes the necessity to diversify the export country destination and to increase the quality and the value added of Indonesian export. Keywords : US Crisis, stock market, trade, SVAR.JEL Classification : G18
Recommended Citation
Nezky, Mita
(2013)
"The Impact of US Crisis on Trade and Stock Market in Indonesia,"
Bulletin of Monetary Economics and Banking: Vol. 15:
No.
3, Article 1.
DOI: https://doi.org/10.21098/bemp.v15i3.428
Available at:
https://bulletin.bmeb-bi.org/bmeb/vol15/iss3/1
First Page
83
Last Page
96
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Country
Indonesia
Affiliation
University of Indonesia
