ANALYSIS OF GOVERNMENT FINANCING ON FOREIGN EXCHANGE RESERVES AND DIFFERENCE STATE ECONOMIC SYSTEM

Abstract

Defrayal of State very determining how a State can execute development process and intention of development of conducted economics. Defrayal of State determined by some indicator, one of them consist of foreign exchange reserve, foreign exchange is representative by defrayal of state which is very determine by indicator of macro economic. This research is aim to analyze to macro economic indicator which determine foreign exchange reserve such as exchange rate, inflation, foreign debt and interestrate. This research try to analyze the influence with multiple linear regression, and then by different test to see condition of stock exchange reserve applying free market economic and state with governmental intervention system. Population at this research is considered to be nations with liberal economic and nation which still not yet opened (still share with governmental intervention). Results of data analysis through the classical assumption test show a model free from problem of classic assumption test. Statistical testing showed the coefficient of determination (adjusted R2) of 0.881. The exchange rate, inflation, external debt and interest rates of deposits influential the foreign exchange reserves. Individually rate influential, inflation influential, foreign debt influential and interest rates influential, all of them have influence to foreign exchange reserves