The Realitionship Between GDP, Exchange Rate, Export And Import In Indonesia: A VECM Model Approach

Abstract

The study is designed to explore the influence of international trade, particularly exports, on Indonesia’s economy. It utilizes time series data spanning from 1991 to 2022 to examine the interconnections among crucial economic indicators like exports, GDP, imports, and exchange rates through VECM analysis. The findings reveal statistically significant causal relationships between exports and other key variables, including imports and GDP. This sheds light on the significance of exports in shaping the economic landscape of Indonesia and informs the development of trade policies and economic growth strategies.