Impact of Export of Plantation Commodities and Energy Use on Indonesian Economic Growth: A Bound Test Co-Integration Approach

Abstract

This research is conducted to analyze the impact of agricultural export commodities (plantation subsector) which is categorized into priority commodities consisted of rubber, rubber product, oil palm, cocoa, and coffee, and non-priority commodities consisted of cotton, tea, tobacco, sugar cane, cloves, and pepper as well as energy consumption (energy use) toward Indonesian economic growth. Using the ARDL approach (a Bound test) which is based on the time series data in the period of 1981-2014, the result obtained is that stationary data on I(1) and the ECT value shows negative coefficient, F-Stat is 5 percent significant indicating that short run is cointegrated toward long run and the model used was stable (CUSUM and CUSUMSQ).