Analysis of Cointegration and Causality between Sharia Interbank Money Market (PUAS), Bank Indonesia Sharia Deposit Facility (FASBIS) and Bank Indonesia Sharia Certificate (SBIS) to Indonesia's Economic Growth

Keywords

Sharia Monetary
Indonesia's Gross Domestic Product (GDP)
Bank Indonesia Sharia Certificate (SBIS)
Bank Indonesia Sharia Deposit Facility (FASBIS)
Sharia Interbank Money Market (PUAS)

How to Cite

Analysis of Cointegration and Causality between Sharia Interbank Money Market (PUAS), Bank Indonesia Sharia Deposit Facility (FASBIS) and Bank Indonesia Sharia Certificate (SBIS) to Indonesia’s Economic Growth. (2024). International Collaboration Conference on Islamic Economics, 2(1). https://conference.apseii.id/index.php/ICCEIS/article/view/69

Abstract

Indonesia is a country with a majority Muslim population whose economic growth is relatively low. Sharia monetary policy instruments tend to be more related to real activities and real assets. Thus, increasing public awareness of sharia principles will strengthen the effectiveness of sharia monetary instruments, which is ultimately expected to increase economic growth. This present study aims to analyze the cointegration and causality between the Sharia Interbank Money Market (PUAS), Bank Indonesia Sharia Deposit Facility (FASBIS) and Bank Indonesia Sharia Certificate (SBIS) to Indonesia's Gross Domestic Product (GDP). This research method used Quantitative Associative using EViews 9 software. The data used was time series monthly data interpolation from 2018-2022. The analysis used is the Johansen Multivariate Cointegration Test and the Granger Causality Test. The results of the cointegration test showed there was a long-term relationship between PUAS and FASBIS, FASBIS and GDP. Meanwhile, the results of Granger's Causality Test found that there was a two-way relationship (mutual causality) between PUAS and GDP, the PUAS and FASBIS, SBIS and PUAS. However, there was a one-way relationship between SBIS and GDP. The dominant variable in influencing Indonesia's GDP was PUAS which has the largest contribution to Indonesia's GDP variable.

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