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Indonesia’s monetary integration with OIC member countries: new evidence

The purpose of this paper is to assess the co-movement of currency symmetry between Indonesia and the Organization of Islamic Conference (OIC) members. The contemporary progress of economic relations between Indonesia and the OIC members might push them towards monetary integration. By employing t...

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Main Author: Agustiar, Memet
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2019
Online Access:http://journalarticle.ukm.my/14073/1/jeko_53%281%29-11.pdf
http://journalarticle.ukm.my/14073/
http://www.ukm.my/fep/jem/content/2019.html
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spelling my-ukm.journal.140732020-01-31T22:31:24Z http://journalarticle.ukm.my/14073/ Indonesia’s monetary integration with OIC member countries: new evidence Agustiar, Memet The purpose of this paper is to assess the co-movement of currency symmetry between Indonesia and the Organization of Islamic Conference (OIC) members. The contemporary progress of economic relations between Indonesia and the OIC members might push them towards monetary integration. By employing the Optimum Currency Area (OCA)-index, this study finds that Indonesia has a strong monetary integration with the OIC members. Indonesia is found to be within the top 10 prime converged countries in the OIC. This finding is clearly contradictory to previous studies that mostly identified little integration between Indonesia and other countries. The panel fixed-effect least squares regression model estimates that the similarity in inflation is the only significant criterion in explaining the closer integration of Indonesia with the OIC. This study provides a new policy implication for Indonesia to integrate more widely within the canopy of the OIC: as long as price stability can be maintained, the potential for integration will be greater. Penerbit Universiti Kebangsaan Malaysia 2019 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/14073/1/jeko_53%281%29-11.pdf Agustiar, Memet (2019) Indonesia’s monetary integration with OIC member countries: new evidence. Jurnal Ekonomi Malaysia, 53 (1). pp. 135-144. ISSN 0127-1962 http://www.ukm.my/fep/jem/content/2019.html
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The purpose of this paper is to assess the co-movement of currency symmetry between Indonesia and the Organization of Islamic Conference (OIC) members. The contemporary progress of economic relations between Indonesia and the OIC members might push them towards monetary integration. By employing the Optimum Currency Area (OCA)-index, this study finds that Indonesia has a strong monetary integration with the OIC members. Indonesia is found to be within the top 10 prime converged countries in the OIC. This finding is clearly contradictory to previous studies that mostly identified little integration between Indonesia and other countries. The panel fixed-effect least squares regression model estimates that the similarity in inflation is the only significant criterion in explaining the closer integration of Indonesia with the OIC. This study provides a new policy implication for Indonesia to integrate more widely within the canopy of the OIC: as long as price stability can be maintained, the potential for integration will be greater.
format Article
author Agustiar, Memet
spellingShingle Agustiar, Memet
Indonesia’s monetary integration with OIC member countries: new evidence
author_facet Agustiar, Memet
author_sort Agustiar, Memet
title Indonesia’s monetary integration with OIC member countries: new evidence
title_short Indonesia’s monetary integration with OIC member countries: new evidence
title_full Indonesia’s monetary integration with OIC member countries: new evidence
title_fullStr Indonesia’s monetary integration with OIC member countries: new evidence
title_full_unstemmed Indonesia’s monetary integration with OIC member countries: new evidence
title_sort indonesia’s monetary integration with oic member countries: new evidence
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2019
url http://journalarticle.ukm.my/14073/1/jeko_53%281%29-11.pdf
http://journalarticle.ukm.my/14073/
http://www.ukm.my/fep/jem/content/2019.html
_version_ 1657565463571333120
score 13.211869

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