Influence Of Macroeconomic Variables Research Articles

The Influence of Macroeconomic Variables on Foreign Direct Investment in the Manufacturing Industry Sector in Indonesia

The purpose of this research is to examine the effect of macroeconomic variables in the form of economic growth, inflation, exchange rates, interest rates, and the money supply on Foreign Direct Investment in the manufacturing industry sector in Indonesia and see whether the presence of the Covid -19 pandemic has affected FDI in the manufacturing sector in Indonesia. Indonesia in the short and long terms. This research was conducted for 13 years every quarter, starting in 2010-2022, because, since 2010 until now, the manufacturing sector has made the most significant contribution to Indonesia's GDP. This study was analyzed using Autoregressive Distributed Lag (ARDL) with a dummy variable. The research results show that short-term economic growth increases FDI in Indonesia's manufacturing sector. The variables of inflation, interest rates, total money in circulation, and the COVID-19 pandemic have implications for reducing FDI flows in the manufacturing sector in Indonesia. Meanwhile, the exchange rate does not significantly affect FDI in Indonesia's manufacturing sector. In the long term, economic growth and inflation variables increase the flow of FDI in the manufacturing sector. Interest rates have had the effect of reducing FDI flows in Indonesia's processing industry sector. Meanwhile, the exchange rate, total money in circulation, and the COVID-19 pandemic have no long-term impact on FDI in Indonesia's manufacturing industry sector in the long term.

The Influence of Macroeconomic Variables on Foreign Direct Investment in the Manufacturing Industry Sector in Indonesia

The purpose of this research is to examine the effect of macroeconomic variables in the form of economic growth, inflation, exchange rates, interest rates, and the money supply on Foreign Direct Investment in the manufacturing industry sector in Indonesia and see whether the presence of the Covid -19 pandemic has affected FDI in the manufacturing sector in Indonesia. Indonesia in the short and long terms. This research was conducted for 13 years every quarter, starting in 2010-2022, because, since 2010 until now, the manufacturing sector has made the most significant contribution to Indonesia's GDP. This study was analyzed using Autoregressive Distributed Lag (ARDL) with a dummy variable. The research results show that short-term economic growth increases FDI in Indonesia's manufacturing sector. The variables of inflation, interest rates, total money in circulation, and the COVID-19 pandemic have implications for reducing FDI flows in the manufacturing sector in Indonesia. Meanwhile, the exchange rate does not significantly affect FDI in Indonesia's manufacturing sector. In the long term, economic growth and inflation variables increase the flow of FDI in the manufacturing sector. Interest rates have had the effect of reducing FDI flows in Indonesia's processing industry sector. Meanwhile, the exchange rate, total money in circulation, and the COVID-19 pandemic have no long-term impact on FDI in Indonesia's manufacturing industry sector in the long term.

The Influence of Macroeconomic Variables on Non-Performing Loan (NPL) at PT Bank Mandiri (Persero) Tbk

In recent years, Bank Mandiri's non-performing loan (NPL) ratio has been on a relatively stable decline until the COVID-19 pandemic in 2020 quarter I put pressure on the Indonesian economy. Since then, Bank Mandiri's NPL ratio has increased significantly due to the global economic recession that also occurred in Indonesia in 2020 quarter III. This study aims to analyse the effect of macroeconomic variables such as gross domestic product, inflation, interest rates, and exchange rates on non-performing loans (NPL) specifically at Bank Mandiri. This study uses secondary data in the form of historical data of related variables and Vector Error Correction Model (VECM) to estimate the dynamics of long-term and short-term relationships between variables. The results of this study indicate that macroeconomic variables such as BIRATE, INF, and LNPDB significantly affect Bank Mandiri's NPLs in the long-run dynamics, while LNKURS is statistically significant in the short-run dynamics. Keywords: Macroeconomic, Non-Peforming Loan, VECM

An ARDL estimation is conducted to examine the dynamical connection among energy use and joblessness in Saudi Arabia

The rate of joblessness in Saudi Arabia has been a major worry in the past few years, exhibiting swings because of several economic causes. The nation has the formidable task of accommodating a substantial influx of fresh graduates into the labor market annually, posing an obstacle for government officials to offer sufficient employment prospects. Nevertheless, there has been a lack of comprehensive research on the influence of macroeconomic variables, such as energy consumption, on joblessness. The objective of this study is to examine the influence of several macroeconomic factors, such as foreign and domestic investment, trade liberalization, inflation, urbanization, economic growth, and energy consumption, on the levels of unemployment in Saudi Arabia. The ARDL estimate method was used to assess the yearly data spanning from 1971 to 2022. The findings indicate a varied anticipated influence of the independent and dependent variables over an extended period of time. While there is a short-term negative correlation between energy consumption and rate of joblessness, this relationship does not hold true in the long term. The study culminates with a compilation of policy suggestions.

The Influence of Macroeconomic Variables on Asean- 5 Countries' Foreign Exchange Reserves Long-Term Relationship and Causality (Empirical Data Year 2014 to 2021)

The country's foreign exchange reserves are an important factor in supporting the economic development process in ASEAN-5 countries. The country's foreign exchange reserves are greatly influenced by macroeconomics so macroeconomic changes will have a large and rapid impact on foreign exchange reserves. So this research aims to determine the influence of macroeconomics, namely the rate of inflation, exchange rate, export value, and economic growth on the foreign exchange reserves of ASEAN-5 countries. The data processing was carried out using the multiple panel data regression method, empirical data from 2014 to 2021. The results of the data processing that has been carried out show that the model test, together with the inflation rate, exchange rate, export value, and economic growth, has an effect of 94.9867 percent. to the foreign exchange reserves of ASEAN-5 countries. Meanwhile, partially the export value and economic growth variables have a significant effect on ASEAN countries' foreign exchange reserves and are positively proportional, but the inflation rate and exchange rate have no effect on ASEAN countries' foreign exchange reserves and are negatively proportional. Apart from that, the role of the government is also very influential in maintaining the country's foreign exchange reserves because macroeconomics is determined by government policies.

A Microstructure Study of Indian Corporate Bond Market: A Review

This Review study explores various dimensions of the Indian capital market, encompassing both equity and bond markets. It delves into the influence of equity market factors, macroeconomic variables, and corporate bond market growth on the overall financial landscape. The relationship between equity market returns, equity market volatility (VIX), and the rupee-dollar exchange rate on bond yields. They highlight that increasing volatility in the equity market leads to a higher demand for fixed income securities, subsequently reducing bond returns. The underscores the significance of a robust corporate bond market for financial system stability, credit availability, and mitigating corporate sector crises. It reviews the growth of the Indian corporate bond market and its implications for monetary, fiscal, and economic variables. The results indicate that a comprehensive corporate bond market does not exhibit a significant positive or negative association with these variables. However, GDP emerges as a crucial factor for India's bond market development, particularly in terms of foreign participants. Lastly, the influence of macroeconomic variables on the Indian corporate bond market over a 23-year period. They reveal a significant correlation between corporate bond market issuance and foreign exchange reserves. Through multiple regression analysis, they found that all selected variables, except GDP and trade openness, significantly explain the volumes of corporate bonds. Collectively, their findings contribute to a comprehensive understanding of the interplay between equity market dynamics, corporate bond market growth, and macroeconomic factors in the Indian capital market. The study provides valuable insights for policymakers and investors, aiding in informed decision-making regarding investment strategies, market stability, and economic growth.

The Influence of Macroeconomic Variables on Inflation After Inflation Targeting Framework Implementation in Indonesia

The global economic crisis that occurred in 1997, which led to the collapse of the rupiah exchange rate and soaring inflation, made the country realize the importance of economic stability. The problem was then responded by Bank Indonesia by implementing the Inflation Targeting Framework policy. The focus of this study is to observe the inflation condition in Indonesia after the implementation of the Inflation Targeting Framework policy. The purpose of this study is to see the influence of macroeconomic variables such as Gross Domestic Product (GDP), Interest Rates, and Exchange Rates on Inflation in Indonesia. The method used is Vector Error Correction Model (VECM) analysis with the research period from 2005Q4-2021Q4. The results found that GDP and interest rates have a positive effect on inflation. While the Exchange Rate has a negative effect on inflation in Indonesia.

The Influence of Macroeconomic Variables on Problematic Financing in the Sector of Manufacturing

This study intends to examine how Indonesia's problematic manufacturing industry sector funding in Islamic banking is affected by macroeconomic factors such exchange rates, inflation, BI rates, and export growth. Monthly time series data from January 2018 to December 2022 were used in this investigation. The multiple linear regression test is the statistical analysis employed in this investigation. The findings demonstrated that the troublesome financing of the Manufacturing Industry sector was significantly influenced by a combination of macroeconomic factors, including exchange rate, inflation, BI rate, and export growth. Partly, the difficult financing of the Manufacturing Industry sector is significantly impacted by both inflation and the BI Rate in both positive and negative ways.

Influence of Macroeconomic Variables on Indian Commodity Futures Prices: Case of Agricultural Commodities

Influence of Macroeconomic Variables on Indian Commodity Futures Prices: Case of Agricultural Commodities

Influence of Macroeconomic Variables (Balance of Payments, Inflation, Economic Growth, and Unemployment) in the Process of Policy-Making in a Country

This paper mostly analyses the microeconomic variable effects in the economic structure of the country. The effects on unemployment and inflation decrease the economic growth of the country. For analysing the economic structure of the country, this research study has adopted secondary qualitative data analysis and a descriptive research design. In this case, unemployment and inflation are related to each other. Mostly unemployment increases then inflation decreases and if inflation decreases then unemployment increases. For this reason, to develop the country's economic condition, an effective policy-making process can help to improve this situation. With the bits of help of economic policies, the country can get the chance to build a strong economic structure in an effective manner Keywords : Microeconomic, Phillips’s curve, inflation

NON-PERFORMING LOANS, MACROECONOMIC AND BANK-SPECIFIC VARIABLES IN SOUTHEAST ASIA DURING COVID-19 PANDEMIC

This study examines the relationship between bank-specific variables, macroeconomic variables and non-performing loans (NPLs) in the seven countries of Southeast Asia (Cambodia, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam) during the pre-COVID-19[Formula: see text]and COVID-19 pandemic. This study adopts panel data regression and distributed lagged regression to examine the impact of bank-specific variables and macroeconomic variables as NPL determinants. The results show that bank-specific variables significantly correlate to NPL, but limited evidence indicates the influence of macroeconomic variables during pre-COVID. Nonetheless, macroeconomic variables are significant to NPL with the emergence of the pandemic, while the bank-specific variables are found to be insignificant. It shows that macroeconomic variables have a greater impact during the turbulent period as they affect most businesses, especially during the pandemic. Furthermore, macroeconomic variables are observed to have a stronger influence on developed countries, but the impact of bank-specific variables is stronger in emerging countries. The results of this study assist policymakers, regulators, banks and governments in identifying the determinants of high NPL as the indicator of a financial crisis. Greater emphasis shall be given to the changes in macroeconomic variables.

The Influence of Macroeconomic Variables on the Stock Market Performance

The purpose of the study is to empirically analyze the influence of the macroeconomic indicators onIndia's stock market performance. The macroeconomic variables considered are inflation, interest rate, money supply,industrial production, and exchange rates in India. The study covers the period from April 2005 to April 2021. The ADFtest has been employed to explore the stationarity of the variables, and the ARDL methodology has been administeredto unearth the association between the macroeconomic variables and stock market return. The study found thatindustrial production, interest rate, and exchange rate have long term negative relationship with stock return. Morespecifically, the exchange rate has a significant impact on the stock market performance. At the same time, inflationexhibits a negative short-term relationship with the stock market return. Though money supply has a positiverelationship, the magnitude is insignificant.

The impact of the selected macroeconomic indicators’ volatility on the performance of South African JSE-listed companies: a pre-and post- Covid-19 study

The influence of macroeconomic variables on aspects of business and the country's economy has been a subject of robust discussion. This study was conducted to identify the effect of macroeconomic variables, namely inflation rate, economic growth, exchange rate and share price, on listed companies in South Africa. The goal was to study the long run and short run effects of macroeconomic volatility on company performance because of the world’s recent pandemic experience. To achieve this objective, the study applied the panel Autoregressive Distributed Lag (ARDL) model on annual panel data from 2010 to 2020 to analyse the short run and long run effects of macroeconomic variables on a company’s performance. The study results suggested a positive impact of economic growth, exchange rate and share price on asset returns, whilst a company's equity return is supported by economic growth and share price in the long run. The short run revealed that none of the independent variables has a sufficiently significant effect to influence a company's performance changes in the short run. Based on the findings, it was recommended that policymakers and economic authorities should introduce and implement strategies that favour and enhance the country's economic growth and stable exchange rate in order to improve company performance. Additionally, given that the company's short-run performance may highly depend on internal factors such as corporate governance, internal policies and business strategies, these decisions should be taken with precaution and a high level of professionalism.

Does Corruption and Government Regulation Matter to Foreign Portfolio Investment: Evidence from Asian and the European Union Countries

Economic integration in various countries impacts fluctuations in and out of capital and multiple economic cooperation between countries. The investment that is one form of implementation of economic integration positively influences a country's capital reserves. The study analyzed the influence of macroeconomic variables and proxied institutions with corruption variables and government regulations on foreign portfolio investment fluctuations in the twenty Asian and EU countries with the largest funds flows. The data used in this study is a data panel with a period from 2002-2019. The analysis method used in this study uses two methods at once, namely the Generalized Method of Moment (GMM) and the Panel Vector Error Correction Model (PVECM), to analyze the cost of the analysis results. The study found that macroeconomic instruments projected with GDP variables had a positive and significant influence on foreign portfolio investments, while exchange rate variables negatively affected foreign portfolio investments. Important findings in this study that corruption consistently negatively and significantly affects foreign portfolio investments are based on both GMM test results and PVECM tests in the long term. In contrast, the results of PVECM tests in the short term do not have any macroeconomic variables or institutions that significantly affect foreign portfolio investment. This means that investors' consideration in investing in Asian countries and Europe is based on a long-term perspective than on short-term economic dynamics. In addition, regulatory variables have a positive and significant effect on foreign investment portfolios in twenty Asian countries and the European Union with the largest portfolio investment fund flow.

The Influence of Macroeconomic Variables on the Stock Market Performance

The purpose of the study is to empirically analyze the influence of the macroeconomic indicators on India’s stock market performance. The macroeconomic variables considered are inflation, interest rate, money supply, industrial production, andexchange rates in India. The study covers the period from April 2005 to April 2021. The ADF test has been employed to explore the stationarity of the variables, and the ARDL methodology has been administered to unearth the association between the macroeconomic variables and stock market return. The study found that industrial production, interest rate, and exchange rate have long term negative relationship with stock return. More specifically, the exchange rate has a significant impact on the stock market performance. At the same time, inflation exhibits a negative short-term relationship with the stock market return.Though money supply has a positive relationship, the magnitude is insignificant.

PENGARUH VARIABEL MAKROEKONOMI TERHADAP PROFITABILITAS BANK KONVENSIONAL BUKU 4 DI INDONESIA

This study explains the extent of the influence of macroeconomic variables on the profitability of BUKU 4 banks in Indonesia. The macroeconomic variables consist of economic growth (X1), inflation (X2), Bank Indonesia Interest Rate (BI Rate) (X3, and Profitability is measured by the ROA (Return) ratio. On Asset). This study combines cross section data of 7 banks with time series from 2010-2019, with the Panel Regression method with the Random Effect model selection test. The results show that: (1) Economic growth has a positive and significant effect on bank profitability. conventional BUKU 4 in Indonesia, (2) Inflation has a positive and insignificant effect on the profitability of conventional BUKU 4 banks in Indonesia, (3) the Bank Indonesia Interest Rate (BI Rate) has a positive and insignificant effect on the profitability of conventional BUKU 4 banks in Indonesia.

Differences in Local Rice Price Volatility, Climate, and Macroeconomic Determinants in the Indonesian Market

Rice is a staple food in most Asian countries, and food security is often viewed as having a rice supply to avoid a food crisis. The large number of people who have low incomes means there is a risk of household economic conditions being threatened when food prices are not controlled. We present a different approach by measuring rice price volatility at the local market level with climate and macroeconomic variables. The model succeeds in representing the variables that affect rice prices by an average of 75% nationally. The influence of macroeconomic variables and climate dynamics was found to have a non-uniform pattern from one region to another. The factors that dominate the volatility of rice prices in each province were different. To help address these problems, it is suggested to model and integrate climate data and macroeconomic variables. The output can be used to determine national policies for controllable factors and anticipate climate dynamics to reduce the risk that communities will have difficulty accessing food.

The Influence of Macroeconomic Variables on the Stock Market Performance

The Influence of Macroeconomic Variables on the Stock Market Performance

Analisis Pengaruh Indikator Ekonomi Makro terhadap Perkembangan PT. Bank Cimb Niaga Tbk

This study aims to discuss the influence of macroeconomic variables on the performance of PT Bank CIMB Niaga Tbk. The study was conducted based on financial ratios of PT Bank CIMB Niaga Tbk. During the period September 2006 until December 2010. The study used multiple linear regression method to determine the dependent variable is the ratio of CAMELS (CAR, PPAP, ROA, ROE, NIM, BOPO and LDR) and independent variables are macroeconomic variables (inflation rate, Exchange Rate Euro Against Dollar, Interest Rate SBI and the Money Supply (M2)). The results using SPSS version 19.0 including tests of normality, multicollinearity test, test heteroscedasticity, autocorrelation test and multiple linear regression test showed that the macroeconomic variables that most influence on the performance of PT Bank CIMB Niaga Tbk is the exchange rate of rupiah against the U.S. dollar negatively (not direction) of the ROE of 97.28%. And in PT Bank CIMB Niaga Tbk, which have increased after the merger is the ratio of PPAP, ROA, ROE and NIM. While the ratio of CAR, and LDR BOPO PT. CIMB Niaga Tbk has decreased.

Pricing of Presale Contracts with Macroeconomic Factors and Stochastic Basis Risk

This study analyzes the stochastic basis risk (presale price minus spot housing price) of presale housing from the viewpoint of forward pricing. We employ the modified Brownian bridge process to deal with the time-varying volatility and price convergence of presale and existing houses. The finding reveals an asymmetric effect of macroeconomic factors on the presale price in different market conditions. Such results might reflect the investors’ behaviors of overreaction and/or over-pessimism. In addition, the influence of macroeconomic variables is greater on the basis price than on the prices of existing houses, especially in a depressed housing market. Our results emphasize the importance of considering basis risk and the influence of macroeconomic factors when pricing presale houses to manage housing risk.