Research Article
Testing Causality Models in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)
@INPROCEEDINGS{10.4108/eai.4-9-2024.2353763, author={Moneyzar Usman and Arivina Ratih and Heru Wahyudi and M. Julian Tama}, title={ Testing Causality Models in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) }, proceedings={Proceedings of the 7th International Conference of Economics, Business, and Entrepreneurship, ICEBE 2024, 4-5 September 2024, Shah Alam, Selangor, Malaysia}, publisher={EAI}, proceedings_a={ICEBE}, year={2024}, month={12}, keywords={granger fdi economic cooperation}, doi={10.4108/eai.4-9-2024.2353763} }- Moneyzar Usman
Arivina Ratih
Heru Wahyudi
M. Julian Tama
Year: 2024
Testing Causality Models in the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT)
ICEBE
EAI
DOI: 10.4108/eai.4-9-2024.2353763
Abstract
Analyzing the reciprocal relationship between economic growth, foreign direct investment, exports, and imports in Indonesia, Malaysia, and Thailand aims to foster collective economic development, boost investments, and promote cross-border trade and tourism involving these three countries. The tool used is Granger causality, analyzing time series data from 1981 to 2022. The findings indicate that in Indonesia, there is a bidirectional relationship between FDI and GDP, as well as between imports and exports. In Malaysia, there exists a bidirectional relationship between imports and GDP. Meanwhile, Thailand has a unidirectional relationship in which exports affect GDP. The study's constraints arise from the restricted number of countries observed and the limited independence of the data. This research contributes to illustrating the long-term economic cooperation among IMT-GT countries.
