Year: 2024 | Month: August | Volume: 11 | Issue: 8 | Pages: 415-423
DOI: https://doi.org/10.52403/ijrr.20240845
Detection of the Palestine-Israel Conflict on Economic Stability in Indonesia
Aqila Zahra Aziz1, Wahyu Indah Sari2, Bakhtiar Efendi3
1,2,3 Economics Department, Universitas Pembangunan Panca Budi, Indonesia
Corresponding Author: Wahyu Indah Sari
ABSTRACT
This research aims to detect the Palestinian-Israel conflict on economic stability in Indonesia. The variables used in this research are the inflation rate, the exchange rate against the dollar, the number of laid-off workers, foreign exchange reserves and the Composite Stock Price Index. The type and source of data uses a quantitative approach with secondary data in the form of time series data with an observation period from February 2023-April 2024. The data analysis method in this research uses the VAR (Vector Autoregression) model. The research results show that the Palestinian-Israeli conflict affects economic stability in Indonesia in the medium and long term, while it is not affected in the short term. The variables that contribute the most to economic stability in Indonesia are the inflation rate and the exchange rate.
Keywords: Economic Stability, Inflation, Exchange Rate, Layoffs, Foreign Exchange Reserves, Composite Stock Price Index
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