Impact of Macroeconomics Variables on Exports in Indonesia, Philippines, Malaysia and Thailand
Exports play an essential role in the world economy. Therefore, it is important to identify the determinants of exports and it is important for policymakers as increased productivity and international trade are important for each country. This paper examines the determinants of exports in Indonesia, Philippines, Malaysia and Thailand. This study is intended to estimate the impact of import, exchange rate, FDI, inflation and Crude oil on export. Three different econometric techniques such as Levin, Lin and Chu test; also, it has been used three different models for panel data estimation namely Pooled OLS, Random Effect and Fixed Effect. Apart from these techniques, different diagnostic tests have also been applied on the secondary data ranging from 1981-2016 which collected from World Bank. The results of the study show that import and exchange rate are positively and significantly related with export in Indonesia, Philippines, Malaysia and Thailand whereas FDI has a significantly negative effect. To sum up, the study concluded that in order to stimulate exports, governments or policymakers should provide peace and political stability between the four countries and the surrounding region in order to obtain more investors.
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