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/ http://journalarticle.ukm.my/14073/ http://journalarticle.ukm.my/14073/1/jeko_53%281%29-11.pdf

id	ukm-14073
recordtype	eprints
spelling	ukm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
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/ http://journalarticle.ukm.my/14073/ http://journalarticle.ukm.my/14073/1/jeko_53%281%29-11.pdf
first_indexed	2023-09-18T20:06:16Z
last_indexed	2023-09-18T20:06:16Z
_version_	1777407179621400576

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

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