THE EFFECT OF EXCHANGE RATE AND INTERESTRNRATE ON INVESTMENT IN ACEH PROVINCE

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Title

THE EFFECT OF EXCHANGE RATE AND INTERESTRNRATE ON INVESTMENT IN ACEH PROVINCE

Description

THE EFFECT OF EXCHANGE RATE AND INTEREST RATE ONINVESTMENT IN ACEH PROVINCEBy. Maria UlfahSupervisors : Prof. Dr. Mohd. Nur Syechalad, MSProf. Dr. Abubakar HamzahABSTRACTInvestment is an important factor in a country or region in order to improve itseconomy. Investment will increase public spending which will result in far-reachingeffects. Investment in Aceh province is the lowest level in Indonesia. Not only in smallquantities, but also fluctuated over years. Especially, when it is compared to thenational investment from 1984 to 2010. The average of Aceh investment province isonly 2 % of the total Aceh GRDP. This study attempts to show the relationship and theeffect of exchange rates and interest rates on investment in Aceh Province also theinfluence of the previous year's investment in current investments. Investigating therelationship and influence between the variables, the Ordinary Least Square (OLS)and autoregressive methods is used in this study. The study has shown that theexchange rates has a little effect on investment in Aceh Province, while interest ratehas no effect on investment in Aceh Province. This situation occurs (especially in Acehprovince) because of the ongoing conflict. It is expected that the study will befollowed by a more focused research again to overcome the limitations of this study.Keyword : Investment, Exchange Rate, Interest Rate

Creator

MARIA ULFAH

Identifier

http://etd.unsyiah.ac.id//index.php?p=show_detail&id=4581