The effects of Japanese economic performance on Indonesia

This paper assesses how Japanese economic performance affects the Indonesian economy for the 1988 to 2004 period. The empirical evidence provided here suggests that Japanese growth appreciates the local currency in real terms, decreases the inflation and increases growth. As a side issue, we also do...

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Bibliographic Details
Published in:Applied economics letters 2006-06, Vol.13 (8), p.499-502
Main Authors: Berument, Hakan, Ceylan, Nildag Basak, Vural, Bengisu
Format: Article
Language:English
Subjects:
Applied economics
Bilateral economic relations
Currencies
Economic analysis
Economic growth
Economic impact
Economic performance
Foreign exchange rates
Indonesia
Inflation
Japan
Spillovers
Studies
Terms of trade
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Summary:This paper assesses how Japanese economic performance affects the Indonesian economy for the 1988 to 2004 period. The empirical evidence provided here suggests that Japanese growth appreciates the local currency in real terms, decreases the inflation and increases growth. As a side issue, we also documented that real exchange rate depreciation accelerates inflation and decreases growth in Indonesia.
ISSN:1350-4851
1466-4291
DOI:10.1080/00036840500400582