top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

Published: 11 October 2021

Impact of Macroeconomic Variables, American Stock Market Index and Covid-19 Pandemic on Indonesia Capital Market Development (Time Series Study 1990-2020)

Almira Rizqia, Pudji Astuty, Heru Subiyantoro

Universitas Borobudur, Indonesia

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.04.04.388

Pages: 1-11

Keywords: FDI, Exchange Rates, Interest Rates, Stock Market Indices, Capital Markets, Covid-19

Abstract

The purpose of this study is 1.) To analyze the influence of foreign investment on the development of the Indonesian capital market. 2).To analyze the influence of the Exchange Rate on the Development of the Indonesian Capital Market. 3).To analyze the influence of the Interest Rate on the Development of the Indonesian Capital Market. 4).To analyze the influence of the Dow Jones Stock Market Index on the Development of the Indonesian Capital Market. 5).To analyze the influence of the Covid-19 Pandemic (dummy variable) on the Development of the Indonesian Capital Market.6). In this study, secondary data and library research were used as a technique for collecting data, using semi-annual data for the period 1990-2020. The research was processed using the EViews 11 program with the multiple linear regression method. The results of the research are known if 1.) Foreign Direct Investment has a significant and positive effect on Capital Market Development. 2.) Exchange Rates have a significant and positive influence on the Development of the Indonesian Capital Market. 3.) Interest Rates have a significant and negative effect on the Development of the Indonesian Capital Market. 4.) The Dow Jones Stock Market Index has a significant and positive effect on the Development of the Indonesian Capital Market. 5.) The Covid-19 pandemic had a significant and negative effect on the Development of the Indonesian Capital Market in the period 1990 to 2020. The results of this study are expected to contribute to policy holders regarding the role of macroeconomic variables on the development of the capital market, so that in the future it can be one of the references in conducting the policy mix so as to improve the development of the Indonesian capital market.

References

  1. Adebowale, E. A., & Akosile, A. I. (2018). Interest rate, foreign exchange rate, and stock market development in Nigeria. Binus Business Review, 9(3), 247–253.

  2. Adiningsih, sri dkk. (2011). Perangkat Analisis dan Teknik Analisis di Pasar Modal Indonesia : PT.

  3. Almfraji, M. A., & Almsafir, M. K. (2014). Foreign direct investment and economic growth literature review from 1994 to 2012. Procedia-Social and Behavioral Sciences, 129, 206–213.

  4. Azeez, B. A., & Obalade, A. A. (2018). Macroeconomic determinants of stock market development in Nigeria:(1981-2017. Acta Universitatis Danubius. Œconomica, 15(1).

  5. Bodie, Z., & Kane, M. (2018). Investments.

  6. Fahmi, I. (2012). Analisis Kinerja Keuangan. Alfabeta.

  7. Gao, X., Ren, Y., & Umar, M. (2021). To what extent does COVID-19 drive stock market volatility? A comparison between the US and China. Economic Research-Ekonomska Istraživanja.

  8. Gujarati, D. N. (2013). Dasar-dasar Ekonometrika, Edisi Kelima. Mangunsong, R.C. penerjemah. Salemba Empat.

  9. Hailemariam, A., & Guotai, C. (2014). Stock market development and economic growth: Empirical evidence for emerging market economies. International Journal of Economics, Finance and Management Sciences, 2(2), 171–181.

  10. He, Q., Liu, J., Wang, S., & Yu, J. (2020). The impact of COVID-19 on stock markets. Economic and Political Studies, 8(3), 275–288.

  11. Hwa, G. H., Li, Y. H., Khan, N. S. K. B. B., & HONG, T. (2016). A Panel Study of the Environmental Kuznets Curve for Carbon Emissions in ASEAN-5 Countries. WSEAS Transactions on Business and Economics, 13(1), 467–473.

  12. Idenyi, O. S., Ifeyinwa, A. C., Obinna, N. J., & Promise, E. A. (2016). Impact of foreign direct investment on stock market growth in Nigeria. Asian Research Journal of Arts & Social Sciences, 1–14.

  13. Jhingan, M. L. (2012). Ekonomi Pembangunan dan Perencanaan. Rajawali Press.

  14. Josphat, K. K., & Kipkirong, T. D. (2012). Macroeconomic determinants of stock market development in emerging markets: Evidence from Kenya.

  15. Junaedi, D., & Salistia, F. (2020). Dampak Pandemi Covid-19 Terhadap Pasar Modal Di Indonesia. Al-Kharaj: Jurnal Ekonomi. Keuangan & Bisnis Syariah, 2(2), 109–131.

  16. Lee, C., Shie, F. S., & Chang, C. Y. (2012). How close a relationship does a capital market have with other such markets? The case of Taiwan from the Asian financial crisis. Pacific-Basin Finance Journal, 20(3), 349–362.

  17. Mankiw, Ng. (2011). Pengantar Ekonomi Makro. jakarta:Erlangga

  18. Mukupo, S. (2019). Challenges of Managing Green Logistics in Zambia a case study of ZEMA, DHL, Barloworld Logistics and Green Living Movement.

  19. Narayan, P. K., Devpura, N., & Wang, H. (2020). Japanese currency and stock market—What happened during the COVID-19 pandemic? Economic Analysis and Policy, 68, 191–198.

  20. Obura, J. M., & Anyango, C. (2016). Moderating effect of interest rates on relationship between foreign exchange rate fluctuation and performance of Nairobi securities exchange market. Universal Journal of Accounting and Finance, 4(2), 27–34.

  21. Poudel, P. B., Poudel, M. R., Gautam, A., Phuyal, S., Tiwari, C. K., Bashyal, N., & Bashyal, S. (2020). COVID-19 and its global impact on food and agriculture. Journal of Biology and Today’s World, 9(5), 221–225.

  22. Ratnaningtyas, H. (2020). Pengaruh Foreign Direct Investment, Inflasi, Bi Rate Dan Nilai Kurs Rupiah Terhadap Indeks Harga Saham Gabungan Indeks Di Bursa Efek Indonesia Periode Tahun 2010-2018. Mabiska Journal, 5, 1–15.

  23. Sunariyah. (2013). Pengantar Pengetahuan Pasar Modal (Edisi 6). UPP STIM YKPN.

  24. Yuyun, W. (2013). Kewirausahaan. Buku Pegangan Jatinagor: UPTPenerbit IKOPIN.

  25. Zhao, S., Zhuang, Z., Ran, J., Lin, J., Yang, G., Yang, L., & He, D. (2020). The association between domestic train transportation and novel coronavirus (2019-nCoV) outbreak in China from 2019 to 2020: a data-driven correlational report. Travel Medicine and Infectious Disease, 33, 101568.

bottom of page