DETERMINANT OF INDONESIAN MANUFACTURING OUTPUT

Author:

Dhina Arga Prati,Wasiaturrahma Wasiaturrahma

Abstract

The role of manufacture in Indonesia influence the economic growth. This research aims to observe and analyze influencing factors of manufacturing sector output in Indonesia. The research method used Error Correction Model (ECM) at period 2005 in 1stquartal – 2017 in 4thquartal. This research used secondary data from Statistik Ekonomi dan Keuangan Indonesia (SEKI) and Federal Reserves. The results of the study show that in long term estimation lend interest rate and inflation have negative and significant impact, whereas FDI has positive and significant impact towards manufacturing sector output. Otherwise, in short term estimation show that lend interest rate has negative and significant impact, while inflation and FDI have no significant impact towards manufacturing sector output.

Publisher

Universitas Airlangga

Subject

General Medicine

Reference22 articles.

1. Abdul, Abdullah, and Accra. 2016. Exchange Rate Variability and Manufacturing Sector Performance in Ghana: Evidence from Cointegration Analysis. Journal of International Economics and Business, 2(1):1-14.

2. Arsyad, Lincolin. 2010. Ekonomi Pembangunan. Yogyakarta: UPP STIM YKPM.

3. Arsyad, Muhammad. 2003. Perkembangan Pembangunan Industrialisasi Indonesia. Jurnal Ekonomi dan Bisnis, 8(3): 17-28.

4. Ayinde, T. O. 2014. The Impact of Exchange Rate Volatility on Manufacturing Performance: New Evidence From Nigeria. Fountain Journal of Management and Social Sciences, 3(2): 83-92.

5. Bank Indonesia. 2002. Laporan Perekonomian Indonesia Tahun 2002. Jakarta: Bank Indonesia.

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