Main Article Content
Abstract
Financial deepening is a benchmark for seeing the role of financial services in the economy, as measured by the ratio between the money supply (M2) and Gross Domestic Product (GDP). This study aims to determine and analyze the effect of inflation, interest rates, exchange rates, and real GDP on financial deepening in Indonesia in the long and short term. The type of research used is quantitative. Sources of data used in this study are secondary data sources obtained from Bank Indonesia (BI) and the Central Bureau of Statistics (BPS). Data analysis using the Error Correction Model (ECM) method. The results show that in the long run, inflation is negatively and insignificantly effect to financial deepening, interest rates are negatively and significantly effect to financial deepening, while the exchange rates and real GDP have a positive and significant effect to financial deepening in Indonesia. Meanwhile, in the short term, inflation is negatively and insignificantly effect to financial deepening, interest rates are negatively and insignificantly effect to financial deepening, exchange rates are positively and insignificantly effect to financial deepening, while real GDP has a positive and significant effect to financial deepening in Indonesia.
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References
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- Aulia, M., & Masbar, R. (2016). Analisis Efektifitas Penggunaan cadangan Devisa dan Financial Deepening terhadap Stabilitas Nilai Tukar. Jurnal Ekonomi dan Kebijakan Publik, 3(2):78–92.
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- Dinar, M. & Hasan, M. (2018). Pengantar Ekonomi: Teori dan Aplikasi. Makassar: In CV. Nur Lina.
- Dougherty, C. (2002) Introduction to Econometrics. 2nd ed. New York: Oxford University Press.
- Global of Economy. (2020). Financial Sector Deepening among Asian Countries. www.theglobaleconomy.
- Hanifah & Khanifah. (2017). Analysis of the Effect of Inflation on the Volume of Savings and Mudharabah Deposits at BRI Syariah Bank. Access Journal, 12(23), 48–55.
- Harisuddin, H., & Hartono, D. (2019). Financial Deepening Impacts on Regional Economic Growth. Signifikan: Jurnal Ilmu Ekonomi, 8(1): 23-36. https://doi.org/10.15408/sjie.v8i1.8944
- Mankiw, G. (2010). Pengantar Ekonomi Mikro. Jakarta: Salemba Empat.
- Nopirin. (1990). Monetary Economics Book I. Yogyakarta: BPFE-Yogyakarta.
- Obafemi, F. N. & Amoke, C. V. (2016). Financial Deepening and Domestic Investment in Nigeria. International Journal of Economics and Finance, 8(3): 40-54. DOI:10.5539/ijef.v8n3p40
- Odhiambo, N. M. (2012). The Impact of Inflation on Financial Sector Development: Experience from Zambia. The Journal of Applied Business Research, 28(6), 1497–1508. https://doi.org/10.19030/jabr.v28i6.7357
- Ogoun, S. & Adumein. (2020). Towards Exchange Rate and Financial Deepening: A Dependency Determination. Journal of Ecnomics and Finance, 11(1), 37–49. https://doi.org/10.9790/5933-1101053749
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- Rahardja, P. & Manurung, M. (2008). Pengantar Ilmu Ekonomi (Mikroekonomi dan Makroekonomi). Edisi Tiga. Jakarta: Fakultas Ekonomi Universitas Indonesia.
- Ruslan, D. (2011). Financial Deepening Analysis in Indonesia. Journal Of Indonesian Applied Economics, 5(2),183–204. https://doi.org/10.21776/ub/JIAE/2016/005.02.2
- Sugiyono. (2015). Methods of Educational Research with Quantitative, Qualitative, and R&D approaches. Bandung: PT Alfabeta.
- Syarifuddin, F. (2015). Konsep, Dinamika dan Respon Kebijakan Nilai Tukar di Indonesia. Jakarta: Bank Indonesia Institute.
- Todaro, M. P. & Smith, S. C. (2006). Economic Development Ninth Edition. Jakarta: PT. Primary Script Excitement.
- Utami, D. (2012). Determinan Suku Bunga Pasar Uang Antar Bank di Indonesia. Jurnal Ekonomi dan Kebijakan, 5(1), 26–35. https://doi.org/10.15294/jejak.v5i1.4624.
References
Alrabadi, D. W. H., & Kharabsheh, B. A. (2016). Financial Deepening and Economic Growth: The Case of Jordan. Journal of Accounting and Finance, 16(6):158–166.
Aulia, M., & Masbar, R. (2016). Analisis Efektifitas Penggunaan cadangan Devisa dan Financial Deepening terhadap Stabilitas Nilai Tukar. Jurnal Ekonomi dan Kebijakan Publik, 3(2):78–92.
Carissa, N., & Khoirudin, R. (2020). The factors affecting the rupiah exchange rate in Indonesia. Jurnal Ekonomi Pembangunan, 18(1), 37-46. doi:https://doi.org/10.29259/jep.v18i1.9826.
Citra, H., Masbar, R., & Syahnur, S. (2018). Financial Deepening and Poverty in Indonesia. Indonesian Journal of Economics and Public Policy, 5(2), 2549–8355.
Dinar, M. & Hasan, M. (2018). Pengantar Ekonomi: Teori dan Aplikasi. Makassar: In CV. Nur Lina.
Dougherty, C. (2002) Introduction to Econometrics. 2nd ed. New York: Oxford University Press.
Global of Economy. (2020). Financial Sector Deepening among Asian Countries. www.theglobaleconomy.
Hanifah & Khanifah. (2017). Analysis of the Effect of Inflation on the Volume of Savings and Mudharabah Deposits at BRI Syariah Bank. Access Journal, 12(23), 48–55.
Harisuddin, H., & Hartono, D. (2019). Financial Deepening Impacts on Regional Economic Growth. Signifikan: Jurnal Ilmu Ekonomi, 8(1): 23-36. https://doi.org/10.15408/sjie.v8i1.8944
Mankiw, G. (2010). Pengantar Ekonomi Mikro. Jakarta: Salemba Empat.
Nopirin. (1990). Monetary Economics Book I. Yogyakarta: BPFE-Yogyakarta.
Obafemi, F. N. & Amoke, C. V. (2016). Financial Deepening and Domestic Investment in Nigeria. International Journal of Economics and Finance, 8(3): 40-54. DOI:10.5539/ijef.v8n3p40
Odhiambo, N. M. (2012). The Impact of Inflation on Financial Sector Development: Experience from Zambia. The Journal of Applied Business Research, 28(6), 1497–1508. https://doi.org/10.19030/jabr.v28i6.7357
Ogoun, S. & Adumein. (2020). Towards Exchange Rate and Financial Deepening: A Dependency Determination. Journal of Ecnomics and Finance, 11(1), 37–49. https://doi.org/10.9790/5933-1101053749
Olusola, A. (2020). Policy lags and exchange rate dynamics in Nigeria: Any evidence?. Jurnal Ekonomi Pembangunan, 18(1), 1-12. doi:https://doi.org/10.29259/jep.v18i1.9688.
Putri, N., & Mubin, M. (2021). Financial Deepening Relationship with Economic Growth in Indonesia. JIET (Jurnal Ilmu Ekonomi Terapan), 6(1), 133-157. doi:http://dx.doi.org/10.20473/jiet.v6i1.26220
Rahardja, P. & Manurung, M. (2008). Pengantar Ilmu Ekonomi (Mikroekonomi dan Makroekonomi). Edisi Tiga. Jakarta: Fakultas Ekonomi Universitas Indonesia.
Ruslan, D. (2011). Financial Deepening Analysis in Indonesia. Journal Of Indonesian Applied Economics, 5(2),183–204. https://doi.org/10.21776/ub/JIAE/2016/005.02.2
Sugiyono. (2015). Methods of Educational Research with Quantitative, Qualitative, and R&D approaches. Bandung: PT Alfabeta.
Syarifuddin, F. (2015). Konsep, Dinamika dan Respon Kebijakan Nilai Tukar di Indonesia. Jakarta: Bank Indonesia Institute.
Todaro, M. P. & Smith, S. C. (2006). Economic Development Ninth Edition. Jakarta: PT. Primary Script Excitement.
Utami, D. (2012). Determinan Suku Bunga Pasar Uang Antar Bank di Indonesia. Jurnal Ekonomi dan Kebijakan, 5(1), 26–35. https://doi.org/10.15294/jejak.v5i1.4624.