EXPORT AND INVESTMENT IN FISHERIES SECTOR IN MALUKU PROVINCE
Abstract: Export and
investment are considered important parts of the macro variables that affect
economicgrowth. The purpose of this study in long-term perspective is to
analyze the dynamicbehavior of export and investment and the movement direction
of causality between exportsand investment in the province of Maluku. Data used
in this research is secondary data, theperiod of 1990-2009. Estimation methods
used in this study is Granger Causality Test, VectorAutoregressive (VAR).
Results show that based on Granger causality test there is one-waydirection
from investment variable to the export of fisheries at lag 1-4, and at lag 5
occurringin two-way relationship between two variables in the model. This
proves that investment is avery good instrument to stimulate the expansion of
fisheries exports sector towards economicopenness. Dynamic behavior of the
movement of exports and investment shows that there arereciprocal relationships
between export and investment the results. It provides evidence thatIRF
shocks/innovations of the investment variables have a direct impact on exports
and viceversa. This means that if export variable decreases, the investment
variable also decreases.On the contrary, when export variable increases, the
investment variable also increases. Yet,the Cholesky decomposition results show
that shocks on fishery exports can be explained eitherby itself or investment.
It indicates that variable of investment give better dynamic responsesand more
dominant compared to export variable.
Author: Yerimias Manuhutu
Journal Code: jpakuntansigg100036
