The Analysis of Export Determinant of Merchandise inthe ASEAN 5

Authors

  • Risky Angga Pramuja
  • Angga Erlando
  • Mudrifah ‎

Abstract

Every country uses an open economic system or an open economy. The state adheres to an open economic system characterized by international trade and bilateral and multilateral interactions. Each country carries out production and specializes in selling its products to benefit from international trade. The financial sector such as investment. Exchange rates also have an important role in increasing a country's production capacity. While the purchasing power parity of the community reflects the ability of the community to buy the products produced by the factory. The purpose of this research is to find out the investment performance, purchasing power, and exchange rate, towards factory goods exports in ASEAN-5. The results of the study indicate that investment has a significant, meaning that any increase in investment will directly reduce exports to ASEAN-5 countries in 2010-2016. Likewise, the Power Purchase Parity has a significant but negative effect, this illustrates that every occurrence of increasing public purchasing power, it will reduce the export of goods, which means that people's appetite for consuming tends to choose domestically produced goods. While the exchange rate does not have a significant effect, meaning that changes in prices that occur globally do not affect the export of goods.

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Published

2020-03-23

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Articles