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6. H = Current account balance does not affect the Credit Default Swap
spreads in Asia and Europe. H
1
= Current account balance does affect the Credit Default Swap spreads in Asia and Europe.
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CHAPTER III RESEARCH METHODOLOGY
A. Scope of the Research
This research conducted by using eviews application and gretl to test the heteroscedasticity. Regression with the panel data used as a method of the
research. This research emphasizes on 5 years maturity Credit Default Swap spreads in Asia and Europe at the time period of 2009-2013. The data that
used by the author to conduct this research are secondary data, obtained from Bloomberg LP,
www.worldbank.org , and
www.quandl.com . The reason that
makes the author select the period of 2009 until 2013 is to figure out the effect of macroeconomic variables toward CDS spreads after the global crisis.
B. Sampling Method
The sampling method used by the researcher in terms of conducting this research is judgment sampling or purposive sample. In this method, the data
are collected based on individual consideration. If the researcher convinces that the respondent is appropriate to be the object of the research, so that, the
object can be chosen by the researcher for conducting the research. Judgment sampling means that the sample is chosen based on the specific
criteria in accordance with the purposes of the research. The criteria required to avoid the misspecification on determining the research’s sample which can
affect the accuracy of the research Karyani, 2006.
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The sample of this research should have to meet the following criteria: 1. The countries located in Asian and European region.
2. Have a complete data that the author required. Such as have a complete GDP growth rate, inflation, unemployment, importGDP,
and current account balance data during the period of the research which is 2009 until 2013.
Based on the criteria described above, the samples that had chosen by the author for conducting this research are 9 Asian countries and 5 European
countries. The selected Asian countries are China, Hong Kong, Indonesia, Japan, Malaysia, Philippines, South Korea, Thailand, and Vietnam, while the
European countries are Germany, Ireland, Italy, Portugal, and Spain.
C. Data Collection Method
The data that used for conducting this research is secondary data. Secondary data gathered through such existing sources or with the other word,
the data is already exist and do not have to be collected by the researcher Sekaran, 2003:59. The required data for conducting this research is
macroeconomic variables and sovereign CDS spreads. The data of macroeconomic variables that consist of GDP growth rate, inflation,
unemployment, importGDP, current account balance obtained from World Bank group and World development indicators
www.worldbank.org and
www.quandl.com , sovereign CDS spreads data obtained from Bloomberg LP
and Indonesian Ministry of Finance access from Bloomberg LP. The data
