"http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> Indonesia Export, Import, and Demand for Domestic Commodities under Economics Liberalisation | Irawan | Economic Journal of Emerging Markets

Indonesia Export, Import, and Demand for Domestic Commodities under Economics Liberalisation

Andi Irawan

Abstract


The aim of this research is to identify the behaviour of export, import and domestic commodities
demand in liberalization era both in the long run and the short run. This research
applies the Vector Error Correction Model, Johansen Cointegration Test, Impulse Response
Analysis and Granger Causality Test. The data range from 1993:01 to 2002:12. The result
shows that in the long run the cross-price elasticity of imported non agricultural goods with
respect to demand for domestically produced goods have lower magnitudes than own price
elasticity of domestically produced goods. The demand elasticity of import commodities is
elastic but that of domestic commodities is inelastic.
Keywords: Import, Export, Economic Liberalization, Vector Error Correction Model

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Economic Journal of Emerging Markets (EJEM)
ISSN 2086-3128 (print), ISSN 2502-180X (online)
Published by:
Center for Economic Studies, Department of Economics,
Universitas Islam Indonesia, Indonesia.

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EJEM by http://journal.uii.ac.id/index.php/JEP/ is licensed under a Creative Commons Attribution 4.0 International License.