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The Effect of USD Exchange, Inflation and Export Levels on 1988-2017 Indonesian Device Reserves

Journal: International Journal of Science and Research (IJSR) (Vol.8, No. 4)

Publication Date:

Authors : ; ;

Page : 250-253

Keywords : US dollar exchange rate; inflation rate; exports; foreign exchange reserves;

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Abstract

The variable US dollar exchange rate, inflation rate, export and foreign exchange reserves in international trade have a causal relationship between one another. In this study, the foreign exchange reserve variable is placed as a dependent variable that can change at any given time because of changes in the US dollar exchange rate, inflation and export rates. Therefore, this study analyzes the relationship of these variables, the extent of the influence of the US dollar exchange rate, inflation and export rates can influence changes in foreign exchange reserves. This research was conducted in Indonesia using secondary data for 30 years from 1988 to 2017. The analysis technique used was multiple linear regression. The results of this study indicate the effect of the US dollar exchange rate, inflation rate and simultaneous export of foreign exchange reserves of 0, 808, meaning that the influence of the three variables is 80.8 percent and the remaining 19, 2 percent is influenced by other factors not included in this study. This study produced a regression equation = 2, 529 + 0, 633 X1 0, 276 X2 + 0, 253 X3. The variable US dollar exchange rate shows the biggest influence that is equal to 63, 3 percent compared to the other two variables.

Last modified: 2021-06-28 18:10:01