Pustaka Ilmiah Universitas Padjadjaran

Abstrak

Indentifying and Developing Business Network of Capital Markets in Indonesia: The Use of System Dynamics

Strong business network is one of vital requirements for supporting a high economic growth, as well as for an adequate national financial structure.

System dynamic is an instrument that has significant capability for developing a framework consisting of complex and integrated components. The instrument can detect all integrated components and describe their causal relationships in an observed problem.

The instrument employs procedure similar to that of regular econometric, i.e. identifying variables, defining hypotheses, testing hypotheses, testing the resulting model, and implementing the model. The main advantage of this instrument is that it employs dynamic simulation which enable the resulting model to anticipate dynamic changes during implementation of the model.

Using the instrument, we expect to result in a clear framework, which incorporates components needed to develop a strong business network of capital markets in Indonesia. This in turn will enable capital market authorities to accurately detect short-term and long-term changes of economic variables, so that various risks related to the capital market can be minimized.