The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets

This study aims to investigate the impact of the movement of macroeconomic variables upon the Indonesia stock markets, both Islamic and conventional stock markets, by using vector error correction model. The macroeconomic variables employed in the study are exchange rate, economic growth, and inflat...

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Main Authors: Abduh, Muhamad, Surur, Miftaskhus
Format: Article
Language:English
Published: International Association of Islamic Banks 2013
Subjects:
Online Access:http://irep.iium.edu.my/32261/
http://irep.iium.edu.my/32261/1/JIBF-July-Sept_13.25-33.pdf
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author Abduh, Muhamad
Surur, Miftaskhus
author_facet Abduh, Muhamad
Surur, Miftaskhus
author_sort Abduh, Muhamad
building IIUM Repository
collection Online Access
description This study aims to investigate the impact of the movement of macroeconomic variables upon the Indonesia stock markets, both Islamic and conventional stock markets, by using vector error correction model. The macroeconomic variables employed in the study are exchange rate, economic growth, and inflation within the period of January 2003 to December 2010. The result shows that in the long run, the performance of the stock markets is negatively influenced by exchange rate and positively influenced by industrial production index. Interestingly, inflation is found to be significant only for conventional stock markets with negative relationship.
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institution International Islamic University Malaysia
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spelling iium-322612013-10-11T06:12:23Z http://irep.iium.edu.my/32261/ The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets Abduh, Muhamad Surur, Miftaskhus BP173.75 Islam and economics HG4501 Stocks, investment, speculation This study aims to investigate the impact of the movement of macroeconomic variables upon the Indonesia stock markets, both Islamic and conventional stock markets, by using vector error correction model. The macroeconomic variables employed in the study are exchange rate, economic growth, and inflation within the period of January 2003 to December 2010. The result shows that in the long run, the performance of the stock markets is negatively influenced by exchange rate and positively influenced by industrial production index. Interestingly, inflation is found to be significant only for conventional stock markets with negative relationship. International Association of Islamic Banks 2013-07-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/32261/1/JIBF-July-Sept_13.25-33.pdf Abduh, Muhamad and Surur, Miftaskhus (2013) The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets. Journal of Islamic Banking and Finance, 30 (3). pp. 25-33. ISSN 1814-8042 https://www.facebook.com/JIBFK
spellingShingle BP173.75 Islam and economics
HG4501 Stocks, investment, speculation
Abduh, Muhamad
Surur, Miftaskhus
The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets
title The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets
title_full The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets
title_fullStr The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets
title_full_unstemmed The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets
title_short The dynamics of macroeconomics variables and the volatility of Indonesia stock markets: evidence from Islamic and conventional stock markets
title_sort dynamics of macroeconomics variables and the volatility of indonesia stock markets: evidence from islamic and conventional stock markets
topic BP173.75 Islam and economics
HG4501 Stocks, investment, speculation
url http://irep.iium.edu.my/32261/
http://irep.iium.edu.my/32261/
http://irep.iium.edu.my/32261/1/JIBF-July-Sept_13.25-33.pdf