Impact of Exchange Rate Change on Import Price

DOI

10.2991/gcbme-16.2016.136How to use a DOI?

Keywords

import price, exchange rate, national income, SVAR.

Abstract

The aim of this research was to examine the interdependence between import price, exchange rate and national income. The data analysis method used was structural vector autoregressive (svar). The data used in this research was quarterly data from 1997.3 through 2013.4. The analysis was conducted on the impulse response function (IFRS) and forecast error variance decompositions (FEDVs) to determine the effect of exchange rate to import price and national income. The results show that exchange rate shock has positive effect on import price and has negative effect on national income. Furthermore, FEDVs analysis show that the variations of import price were largely determined by the import price, and the exchange rate variations were largely determined by the exchange rate itself. Meanwhile, the variations in national income were largely determined by the exchange rate variable.

Copyright

© 2016, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Sri Isnowati
AU  - Mulyo Budi Setiawan
PY  - 2016/08
DA  - 2016/08
TI  - Impact of Exchange Rate Change on Import Price
BT  - Proceedings of the 2016 Global Conference on Business, Management and Entrepreneurship
PB  - Atlantis Press
SP  - 723
EP  - 728
SN  - 2352-5428
UR  - https://doi.org/10.2991/gcbme-16.2016.136
DO  - 10.2991/gcbme-16.2016.136
ID  - Isnowati2016/08
ER  -