The purpose of this study is to observe the dynamic of Indonesia’s economic cycles for six main sectors. In constructing the cycles, we use quarterly gross domestic product (GDP) for six Indonesian sectors over the period 2000-2021. We obtain the economic cycles for each of the six sectors using Hodrick-Prescott filter and Christiano-Fitzgerald filter techniques. We find evidence that five of six sectors have relatively strong correlation with the aggregate GDP growth cycle. Additionally, by using the concordance index, we further conclude that three sectors are pro-cyclical with the aggregate GDP growth cycle.
Anastasia, Monica Karina; Ginting, Pahmi Utamaraja; Syahrir, Risqia Fadhilah; Hermansyah, Oki; and Shiroth, Muhamad
"THE DYNAMIC OF INDONESIA’S SECTORAL ECONOMIC CYCLES,"
Bulletin of Monetary Economics and Banking: Vol. 26:
2, Article 4.
Available at: https://bulletin.bmeb-bi.org/bmeb/vol26/iss2/4