European Journal of Business and Management
Analysis of Correlation Between Indonesian Composite Index and Economic Growth in Indonesia
Abstract
This study aims to analyze the correlation between the Indonesia Composite Index (ICI) and Economic Growth in Indonesia. This study uses time series data for the period 2001 – 2018, the secondary data have been obtained from the Indonesian Central Statistics Agency and Bank Indonesia (BI). The data analysis method uses “Two stage lest square simultaneous equation model” to explain the reciprocal correclation between the Indonesian Composite Index (ICI) and economic growth, Gross Domestic Product (GDP) in Indonesia. The analysis shows that both variables have a positive and significant feedback effect in the long term.
Keywords: Indonesia Composite Index, Economic Growth, Two stage lest square
DOI: 10.7176/EJBM/12-8-07
Publication date:March 31st 2020
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ISSN (Paper)2222-1905 ISSN (Online)2222-2839
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