The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia

Authors

  • Manat Rahim Department of Economics, Faculty of Economics and Business, Universitas Halu Oleo, Kendari 93232
  • Pasrun Adam Department of Mathematics, Universitas Halu Oleo, Kendari 93232
  • Heppi Millia Department of Economics, Universitas Halu Oleo, Kendari 93232
  • La Ode Suriadi Department of Economics, Universitas Halu Oleo, Kendari 93232
  • La Ode Ode Saidi Department of Mathematics, Universitas Halu Oleo, Kendari 93232

Abstract

This article reports the results of a study examining the causal relationship between fuel consumption, exchange rates, and economic growth in Southeast Sulawesi, Indonesia. The data used are annual time series data ranging from 1988 to 2016. The estimation results of the VAR model and the Granger causality test indicate that the causal relationship that occurs is only a short-term causality, namely from fuel consumption to economic growth.

Keywords: fuel consumption, exchange rate, economic growth, VAR model, Granger causality test.

JEL Classifications: C120, C320, E21, F31

DOI: https://doi.org/10.32479/ijeep.11518

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Published

2021-11-03

How to Cite

Rahim, M., Adam, P., Millia, H., Suriadi, L. O., & Saidi, L. O. O. (2021). The Causal Relationship between Fuel Consumption, Exchange Rates and Economic Growth in South East Sulawesi, Indonesia. International Journal of Energy Economics and Policy, 11(6), 1–6. Retrieved from https://econjournals.com/index.php/ijeep/article/view/11518

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