THE DYNAMIC OF INDONESIA’S SECTORAL ECONOMIC CYCLES

Authors

Monica Karina Anastasia, Bank IndonesiaFollow
Pahmi Utamaraja Ginting, Bank IndonesiaFollow
Risqia Fadhilah Syahrir, Bank IndonesiaFollow
Oki Hermansyah, Bank IndonesiaFollow
Muhamad Shiroth, Bank IndonesiaFollow

Document Type

Article

Abstract

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.

Recommended Citation

Anastasia, Monica Karina; Ginting, Pahmi Utamaraja; Syahrir, Risqia Fadhilah; Hermansyah, Oki; and Shiroth, Muhamad (2023) "THE DYNAMIC OF INDONESIA’S SECTORAL ECONOMIC CYCLES," Bulletin of Monetary Economics and Banking: Vol. 26: No. 2, Article 4.
DOI: https://doi.org/10.59091/1410-8046.2068
Available at: https://bulletin.bmeb-bi.org/bmeb/vol26/iss2/4

First Page

136

Last Page

167

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License

Country

Indonesia

Affiliation

Bank Indonesia