MODELING OF GROSS DOMESTIC PRODUCT (GDP) AND INFLATION FACTORS IN INDONESIA 2011 – 2023 USING THE SIMULTANEOUS EQUATION APPROACH

  • Supriyanto Supriyanto Statistics Department, Faculty of MIPA, Universitas Jenderal Soedirman, Purwokerto, Indonesia
  • Nunung Nurhayati Statistics Department, Faculty of MIPA, Universitas Jenderal Soedirman, Purwokerto, Indonesia
  • Niken Larasati Mathematics Department, Faculty of MIPA, Universitas Jenderal Soedirman, Purwokerto, Indonesia

Abstract

Economic development is an effort to improve the standard of living of the community which is often measured by the high and low income of the population each year or per capita income. In macro analysis, the measurement of a country's economy is Gross Domestic Product (GDP) and Inflation. Indonesia, with an economy that is highly dependent on monetary and economics, always faces the problem of economic growth. Changes in this indicator will have an impact on the dynamics of economic growth. The purpose of this study is to analyze the simultaneous model of GDP and Inflation using the Two Stage Least Square (2SLS) method. The GDP and inflation models consist of two structural equations. For the GDP equation, it is significantly influenced by Inflation, Government Spending, and Exchange Rates. There are two studies in this study. In the simultaneous equation for inflation, it is significantly influenced by GDP, Government Spending, Money Supply and interest rates.

Published
2025-01-10
How to Cite
SUPRIYANTO, Supriyanto; NURHAYATI, Nunung; LARASATI, Niken. MODELING OF GROSS DOMESTIC PRODUCT (GDP) AND INFLATION FACTORS IN INDONESIA 2011 – 2023 USING THE SIMULTANEOUS EQUATION APPROACH. Proceeding ICMA-SURE, [S.l.], p. 151-160, jan. 2025. ISSN 2808-2702. Available at: <https://jos.unsoed.ac.id/index.php/eprocicma/article/view/14628>. Date accessed: 03 apr. 2025.
Citation Formats
Issue
Proceeding The 7th International Conference on Multidisciplinary Approaches for Sustainable Rural Development
Section
Articles