THRESHOLD OF REAL EXCHANGE RATE AND THE PERFORMANCE OF MANUFACTURING INDUSTRY IN INDONESIA

  • Ndari Surjaningsih Bank Indonesia
  • Novi Maryaningsih
  • Myrnawati Savitri

Abstract

This paper analyzes the presence of the threshold of the real rupiah exchange rate which influences the profitability of manufacturing industry in Indonesia. By using a non-dynamics panel data over medium and large scale companies during 2001-2009, we found the threshold of 82.4 for the real rupiah exchange rate (REER). The REER index ranging from 82.24 to 101.13 with the change value between -5.01% and 20.09% (yoy) is secure for the profitability of Indonesian manufacturing industry. This paper also conform the significant affect of Total Factor Productivity on firm’s profitability.  Keywords: Profitability, Manufacturing industry, exchange rate JEL classification: F1, D21, L6

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Published
2014-10-27
How to Cite
Surjaningsih, N., Maryaningsih, N., & Savitri, M. (2014). THRESHOLD OF REAL EXCHANGE RATE AND THE PERFORMANCE OF MANUFACTURING INDUSTRY IN INDONESIA. Buletin Ekonomi Moneter Dan Perbankan, 16(4), 373-394. https://doi.org/10.21098/bemp.v16i4.25
Section
Articles