THE EFFECT OF MACROECONOMICS VARIABEL TO THE VOLATILITY OF INDONESIA SHARI-AH CAPITAL MARKET STOCK
Rihana Sofie Nabella
Faculty of Economics and Business, University of Brawijaya
Abstract
Indonesias sharia capital market continues to develop and become an alternative investment. Compared to conventional capital markets, sharia capital markets are believed to be stronger against crises, changes in economic fundamentals and financial market shocks. This study aims to analyze the effect of macroeconomic variables on Indonesia Sharia Stock Index. This research uses Error Correction Model (ECM) method. The results of this study are the rising exchange rate and world crude oil price will decrease Sharia Index of Indonesia Shares (ISSI), in the long run and short term increase of BI Rate will increase Sharia Index of Indonesia (ISSI) and inflation rate does not affect Indonesia Sharia Index ( ISSI).
Keywords: Indonesian Sharia Capital Market, Macro economics variables, Error Correction Model (ECM)
Topic: Islamic Economics, Business and Accounting