CENTRAL BANK INDEPENDENCE, BUREAUCRATIC CORRUPTION AND FISCAL RESPONSES: CASE OF INDONESIA

ASTI, KUMALA PUTRI (2016) CENTRAL BANK INDEPENDENCE, BUREAUCRATIC CORRUPTION AND FISCAL RESPONSES: CASE OF INDONESIA. Masters thesis, Universitas Andalas.

Text (Tesis Fulltext) 2170.pdf - Published Version Restricted to Repository staff only Download (1MB)

Abstract

This study investigates central bank independences (CBI), bureaucratic corruption and fiscal responses in Indonesia (1980-2011). This research applies VECM (Vector Error Correction Model) as method analysis. The granger test show corruption and CBI influence the increase of debt accumulation through exchange rate. The result show corruption, CBI, exchange rate and GDP are significant influence debt accumulation in long term. Further, the impulse response found that the shock in debt increase the number of corruption and reduce the central bank independence. Furthermore, variance decomposition, show corruption and debt have big influences to the debt accumulation. For the next research, it will be beneficial if involve variable monetary or fiscal tools to control the debt. In order, the research not only can identify the impact of the debt in the corruption but also can find the best way to manage the debt. Keywords: Debt Accumulation, Bureaucratic Corruption, Central Bank Independence JEL Classification : H63, D72, E50

Actions (login required)

View Item