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International Journal of Academic Research in Economics and Management Sciences

Open Access Journal

ISSN: 2226-3624

Is There Causality Relationship between Export and Employment: A Time Series Data Evidence from Indonesia

KhairulAmri ., Nazamuddin .

http://dx.doi.org/10.6007/IJAREMS/v7-i2/4212

Open access

The main purpose of the study is to investigate the relationship between the export and employment creation in Indonesia. Using time series data for the period of 1987-2013. Johanson co-integration test employed to determine the long-run relationship between the variables. Vector autoregressive and Granger causality test utilized to test the short-run relationship between the variables. The study found that in the long-run, there is no relationship between employment and export. In a short-run, the employment positively and significantly causes the export. Granger causality test indicates that there is unidirectional causality running from the export to employment.

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