The Effect of Selected Macroeconomic Variables on Sharia Mutual Funds in Indonesia: A Multidimensional Analysis with VECM Approach

Hilta Sepita *

Tanjungpura University, Indonesia.

Metasari Kartika

Tanjungpura University, Indonesia.

Windhu Putra

Tanjungpura University, Indonesia.

*Author to whom correspondence should be addressed.


Abstract

This study determined the short-term and long-term effects of Inflation, Indonesia crude price, and Indonesia sharia stock index on sharia mutual funds in Indonesia. This research utilized secondary data from January 2014 - December 2023 sourced from the Financial Services Authority (OJK), Central Agency on Statistics (BPS), Ministry of Energy and Mineral Sources of the Republic of Indonesia (KESDM). This study uses long run and short run VECM tests. The results show that the long-run VECM estimates indicate that the Inflation variable and the Indonesian sharia stock index have a long-term significant positive effect on Islamic mutual funds in Indonesia. While the Indonesian crude price has a long-term significant negative effect on Islamic mutual funds in Indonesia. The short run VECM estimation results show that there are no variables that affect Islamic mutual funds in Indonesia. Granger causality test reveals the causal relationship between various variables on Islamic mutual funds. The conclusions obtained can be used as a reference for potential investors in making investment decisions for the short and long term.

Keywords: Inflation, Indonesia sharia stock index, Indonesia crude price, NAV sharia mutual funds, VECM


How to Cite

Sepita, Hilta, Metasari Kartika, and Windhu Putra. 2024. “The Effect of Selected Macroeconomic Variables on Sharia Mutual Funds in Indonesia: A Multidimensional Analysis With VECM Approach”. Asian Journal of Economics, Business and Accounting 24 (7):105-16. https://doi.org/10.9734/ajeba/2024/v24i71395.

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