International Journal of Social Science & Economic Research
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Title:
THE EFFECT OF ADDITIONAL INDUSTRIAL VALUE AND MACRO ECONOMIC VARIABLES ON INDONESIAN TRADE

Authors:
Agus Tri Basuki , Nano Prawoto

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Agus Tri Basuki1 , Nano Prawoto1
1. Universitas Muhammadiyah Yogyakarta Indonesia

MLA 8
Basuki, Agus Tri, and Nano Prawoto. "THE EFFECT OF ADDITIONAL INDUSTRIAL VALUE AND MACRO ECONOMIC VARIABLES ON INDONESIAN TRADE." Int. j. of Social Science and Economic Research, vol. 3, no. 12, Dec. 2018, pp. 6819-6835, ijsser.org/more2018.php?id=481. Accessed Dec. 2018.
APA
Basuki, A., & Prawoto, N. (2018, December). THE EFFECT OF ADDITIONAL INDUSTRIAL VALUE AND MACRO ECONOMIC VARIABLES ON INDONESIAN TRADE. Int. j. of Social Science and Economic Research, 3(12), 6819-6835. Retrieved from ijsser.org/more2018.php?id=481
Chicago
Basuki, Agus Tri, and Nano Prawoto. "THE EFFECT OF ADDITIONAL INDUSTRIAL VALUE AND MACRO ECONOMIC VARIABLES ON INDONESIAN TRADE." Int. j. of Social Science and Economic Research 3, no. 12 (December 2018), 6819-6835. Accessed December, 2018. ijsser.org/more2018.php?id=481.

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Abstract:
This study aims to analyze the influence of industrial value added and macroeconomic variables on Indonesia's trade in the face of World Free Trade. Data was taken from the Central Statistics Agency, Bank Indonesia and the Ministry of Finance of the Republic of Indonesia from 1986 to 2016. The model used in the study was the Vector Error Correction Model (VECM) model. The VECM model is used because it can predict short-term and long-term conditions.
The results of the study show that in the short term and long term trade has a significant effect on trade itself, then there are four independent variables that have a significant effect on trade. The four independent variables, namely last year's gross domestic income, Gross Fixed Capital Formation last year, the exchange rate and industrial value added last year.