Regional Economics Commons^™

The Environmental Kuznets Curve For Deforestation In Indonesia, Dara Adila, Nunung Nuryartono, Mandar Oak

Economics and Finance in Indonesia

This study provides empirical findings on the relationship between deforestation and income in 32 provinces in Indonesia. To enrich the discussion on deforestation, this study investigates the impact of the factors of population, roundwood production, land area, and main crop production on deforestation. The selected main crops in Indonesia are oil palm, coffee, coconut, rubber, and cacao. The results confirm the existence of the EKC relationship between deforestation and income in Indonesia. The study also finds that oil palm production positively affects tree cover loss, but the production of natural rubber has the opposite impact on deforestation.

Factors Influencing Economic Empowerment In Tourism Development, Eva Rachmawati, Joanna Fountain, Michael Mackay

Economics and Finance in Indonesia

Tourism is believed to be able to empower people economically, both at the individual and community levels, by providing various employment and business opportunities to community members to help alleviate poverty. This study offers insights into community empowerment outcome, particularly in economic dimension, through a quantitative approach. This study aims to identify the level of community empowerment outcome perceived by the local communities in tourism development in their area and analyze the factors that influence the outcome. Employing a mixed-methods approach, this study collected data through household survey, field and participatory observation, and document analysis. The questionnaire responses were analyzed …

Measuring The Productivity Of The Foods And Beverages Industries In Indonesia: What Factors Matter?, Mohamad Zeqi Yasin

Economics and Finance in Indonesia

The foods and beverages industries have shown the largest share of output in the manufacturing sector of Indonesia for more than a decade. This study aims to investigate its performance indicators through the growth of total factor productivity (TFP) and its determinants, such as imported raw materials, exports, absorptive capacity, firm size, market concentration, and capital ownership. This study employed firm-level panel data from 2008 - 2015 and the Growth Accounting method of Solow residual in addition to the fixed effects model to estimate TFP growth and its determinants. The results show that the foods and beverages industries in Indonesia …

The Impact Of Mother's Bargaining Power On The Nutritional Status Of Children In Indonesia, Ahmad Yeyen Fidyani, Arief Anshori Yusuf

Economics and Finance in Indonesia

Poor nutritional status, especially during childhood, has a negative impact on one's early life as well as throughout their life. One of the factors that influences the improvement of children's nutritional status is the bargaining power of the mother. Previous studies have limitations in that they often use cross-sectional data and indirect approaches to measuring bargaining power. This study aims to measure the impact of maternal bargaining power on children's nutritional status in Indonesia. The unit of analysis is children aged 7 - 19 years (IFLS5) who still have and live with their parents (IFLS4). Using the OLS estimation method, …

Mobility Pattern Changes In Indonesia In Response To Covid-19, Setia Pramana, Yuniarti Yuniarti, Dede Yoga Paramartha, Satria Bagus Panuntun

Economics and Finance in Indonesia

All countries affected by the COVID-19 pandemic have established several policies to control the spread of the disease. The government of Indonesia has enforced a work-from-home policy and large-scale social restrictions in most regions that result in the changes in community mobility in various categories of places. This study aims to (1) investigate the impact of large-scale restrictions on provincial-level mobility in Indonesia, (2) categorize provinces based on mobility patterns, and (3) investigate regional socio-economic characteristics that may lead to different mobility patterns. This study utilized Provincial-level Google Mobility Index, Flight data scraped from daily web, and regional characteristics (e.g., …

Fiscal Sustainability In Indonesia With Asymmetry, Mohamad Ikhsan, I Gede Sthitaprajna Virananda

Economics and Finance in Indonesia

The management of fiscal balance determines public debt sustainability, where a positive response of primary balance towards the debt ratio indicates a sustainable path. However, there might be asymmetry in the government's fiscal management between different phases of the debt trajectory and business cycle. This study examines the sustainability of fiscal imbalance and public debt in Indonesia using the fiscal reaction function with annual fiscal data from 1976 to 2019. We incorporate asymmetry by decomposing the lagged debt ratio and cyclical output variables into their positive and negative partial sums. We find that Indonesia's fiscal imbalance is on a path …

Factors To Improve Fishery Household Welfare: Empirical Analysis Of Indonesia, Bayu Rhamadani Wicaksono, Yuniarti Yuniarti, Dede Yoga Paramartha

Economics and Finance in Indonesia

This study attempts to verify the linkage between the characteristics of fishers and the welfare of fishery household in Indonesia, which is explained by the surplus obtained by fishers. Based on the empirical results using multiple linear regression analysis, variables with significant impacts on improving the welfare of fishery household in Indonesia in both marine and inland open water fisheries are fishing gear, number of fishers, number of crew, salary, province, age, gender, education level, processed storage, transportation, and market target. Furthermore, the characteristics of fishers are divided into similarities and differences. Observed from the similarities, the main fishers play …

Credit Limit Of Unsecured Consumer Lending: Evidence From Micro Data, Suwinto Johan, Calista Endrina Dewi

Economics and Finance in Indonesia

As credit card debts have increased in Indonesia over the past ten years, concerns over the impulsive buying behavior of Indonesian credit card holders have emerged. Therefore, more attention must be paid to credit risk management of banks as it plays an important role in analyzing the possibility of losses due to the inability of prospective borrowers to repay debts. This study provides empirical evidence about the prudence of commercial banks in Greater Jakarta in offering credit card limits. Using primary micro-data collected from credit card applications submitted to the largest foreign private bank providing retail credit in the Greater …

Indonesian Provinces Sdgs Composite Index: Lampung Province Analysis, Reny Andriati, Mohamad Fahmi

Economics and Finance in Indonesia

Publications of Sustainable Development Goals (SDGs) have mainly been conducted at a national level and separately for each goal. No prior research has been done on SDGs composite index at a provincial level in Indonesia. It is necessary to create a composite index that presents a single value at the provincial level to enable regional evaluation. The Indonesia Province SDGs composite index is developed from indicators based on Statistics Indonesia gathered from several publications. The data sources are the National Socio-Economic Survey (Susenas) and the Basic Health Research (Riskesdas) which were linked surveys held in 2018. Principal Component Analysis and …

Financial Reporting Quality And Investment Efficiency: Evidence From Indonesian Stock Market, Iman Harymawan

Economics and Finance in Indonesia

This study aims to analyze the impact of financial reporting quality on the investment efficiency of a company. The study uses 994 observations from companies listed on the Indonesia Stock Exchange (IDX) in three periods from 2013Â to 2015. The findings suggest that higher financial reporting quality has a positive and significant relationship with investment efficiency. Furthermore, the tests were conducted on groups of companies experiencing underinvestment and overinvestment. It was found that higher financial reporting quality had a negative and significant relationship with companies experiencing overinvestment. The findings provide implications for investors in assessing investment management carried out by …

The Effects Of Imf's Lending And Conditionalities On Economic Growth: Case Of Sadc Countries, Lutete Celina Carlos

Masters Theses

I examine the impact of IMF credit use and its conditions on economic growth performance in 12 South African countries over a period of 1999-2019. The work adopts an empirical and quantitative approach to analyzing the relationship between the GDP per Capita, the use of IMF Credit, Government Final Consumption Expenditure, Net Domestic Credit and Current Account balance. These variables are the most recommended in the IMF conditionalities during the lending arrangements with SADC members. The study uses Fixed-effect approach to evaluate how the use of IMF program and the conditions imposed directly affects economic growth. A dummy variable is …

The Impact Of Disparity In Infrastructure Development On Aceh's Economic Performance: An Inter-Provincial Analysis, Mutiara Fahmi

Economics and Finance in Indonesia

This study provides empirical findings on regional disparity in infrastructural facilities in 23 districts/municipalities of Aceh Province and the impact of the disparity on the economic performance of Aceh Province, specifically on those of economic growth, poverty, and unemployment. The unit of analysis is the district level and the Infrastructure Development Index (IDI) is used as the variable computed by using the multivariate method. Regional disparity is measured by the Coefficient of Variation and the impact of IDI on the provinces economy is analyzed using the econometric model. The analysis shows that infrastructure development disparity exists and that IDI generally …

Public Health Spending, Governance Quality And Poverty Alleviation, Mohamad Komarudin

Economics and Finance in Indonesia

Poverty alleviation has become the main priority program in most developing countries. This research empirically studies the correlation between public health spending, governance quality, and poverty alleviation in developing countries. The panel data were estimated via a random-effects (RE) model and robustness check using instrumental variables (IV) (two-stage least-squares [2SLS]) and first-difference generalized method of moments (GMM) because of the endogeneity problem. The results suggest that public health spending has a significant effect on reducing the poverty rate, and that countries with better governance tend to reduce poverty than countries with poor governance. Increasing public health spending by one percentage …

The Role Of Banking Services In Determining The Destination Countries For Indonesia's Non-Oil And Gas Export, Rini Satriani

Economics and Finance in Indonesia

This study aims to examine whether the risk factor and banking services play a significant role in determining not only the export performance of a country but also the pattern of export destination markets, with the reference to the case of Indonesia. These two indicators are interrelated because the risk factor in export transactions can be mitigated by banking sector. Using the data of export Letter of Credits (LCs) for non-oil and gas exports of Indonesia as a banking instrument to mitigate special risk transactions to 102 export destination countries as well as a panel data methodology for the 2011-2018 …

A Decomposition Analysis Of Fertility: Evidence From Dki Jakarta And East Nusa Tenggara, Farma Mangunsong

Economics and Finance in Indonesia

Fertility control has been one of the priorities of development in Indonesia. However, the 2000 and 2010 population censuses showed an increase in fertility indicators. To identify the sources of increased fertility in developed and less developed areas, DKI Jakarta and East Nusa Tenggara Provinces were selected for comparison. Using 2000 and 2010 census data, the decomposition analysis shows that the increase in Total Fertility Rate (TFR) of DKI Jakarta was dominated by the increase in nuptiality rate, while the increase in TFR of East Nusa Tenggara was mainly caused by the increase in Marital Fertility Rate (MFR). The highest …

Business Vulnerability And Credit Access For Agriculture-Based Micro And Small Women Entrepreneurs, Dewi Ratna Sjari M

Economics and Finance in Indonesia

Micro and Small Industries (MSIs) constitute the largest share of Indonesia's manufacturing sector and play an important role in providing employment opportunities and value-added creation. However, their business sustainability and scaling up are often hindered by various factors, one of which is access to credit. The subsidized loan scheme provided by the government, namely People's Business Credit (KUR), appears to be insufficiently attractive to entrepreneurs, especially to Micro and Small Women Entrepreneurs (MSWEs). Employing a logit regression method and utilizing the BPS-Statistics Indonesia's 2015 MSI survey data, this study aims to investigate factors affecting MSWEs decision to apply for bank …

The International Tourism Performance Amidst Several Intervention Events: More Than 20 Years Of Multi Input Intervention Analysis In Bali, Jakarta, And Kepulauan Riau Provinces, Taly Purwa

Economics and Finance in Indonesia

As one of the priority sectors in economic development of Indonesia, tourism is expected to be the main key in accelerating economic and social growth, hence reducing poverty. The tourism performance, especially international tourism market, is highly prone to intervention events that can reduce the number of inbound tourists and produce a negative impact on economic development of the destination country. Therefore, anticipating and mitigating various intervention events is necessary to maintain the performance of the tourism sector in Indonesia. This study investigates the magnitude and patterns of impact of several intervention events on the number of international visitor arrivals …

Should I Bribe? Re-Examining The Greasing-The-Wheels Hypothesis In Democratic Post-Soeharto Indonesia, Irfan Kurniawan

Economics and Finance in Indonesia

During the Soeharto Era corruption was considered to grease the wheels of growth in Indonesia, a country once considered to be the most corrupt country in the world. Indonesia began to experience instantaneous decentralization and democratization after the Soeharto Era abruptly ended. While vastly celebrated, these episodes have their unintended consequence: coercive regulation. We employed the extensive firm-level Large and Medium Manufacturing (Industri Besar Sedang/IBS) census data combined with the Indonesian Democracy Index (Indeks Demokrasi Indonesia/IDI) at provincial level spanning from 2009 to 2015 and found that bribery hampered Indonesian firm output and productivity growth by 9.8% and 12.6%, respectively. …

Islamic Financial Literacy Index Of Students: Bridging Sdgs Of Islamic Finance, Arief Dwi Saputra, Alfina Rahmatia

Economics and Finance in Indonesia

This research aims to measure the level of Islamic financial literacy among students by reviewing 2 dimensions, 8 variables, and 33 indicators obtained from literature studies and experts. This study applied mix method to qualitative and quantitative data with a total sample of 273 respondents. The data were obtained from interview and online FGD and then processed by word similarity analysis as well as validity and reliability tests, the results of which are used as reference and conclusion. The analysis shows that the level of understanding of financial literacy among students remains significantly low, proven by the value of the …

Social Determinants Of Health: The Impact On Health Outcomes And Hospital Profitability, Danielle Mcpherson

Doctor of Business Administration Dissertations

Hospitals are experiencing decreasing profitability due to increasing healthcare cost. In this paper, I demonstrate that there is financial value to hospitals by addressing social determinants of health (SDOH) as this strategy improves health outcomes and yields cost savings. I estimate the impact of SDOH on the health outcomes using an IV probit regression analysis and estimated the impact of health outcomes on cost using a basic linear regression. I estimate that improving SDOH by one standard deviation will result in hospital cost savings as follows: addressing Violent Crime will decrease hospital cost between 0.16% and 0.21%, addressing Supplemental Nutrition …

Does Bitcoin Use Affect Crime Rates?, Kevin Keane

The Corinthian

Bitcoin is the most widely used cryptocurrency in the world because of its decentralized network that completes user-to-user transactions, eliminating the need for intermediaries. During 2017, the volume of Bitcoin transactions totaled $94.3 trillion. Bitcoin transactions are recorded in a public database called the blockchain. Although the blockchain can keep track of how many transactions there are, it can’t identify the people involved in transactions. The lack of identity increases the anonymity of Bitcoin transactions, making it less detectable when used for crime. Using the Uniform Crime Reporting’s state-level crime rate data and blockchain’s Bitcoin transaction information, I estimate the …

The Impact Of Human Capital On Shadow Economy In Indonesia, Neli Agustina

Economics and Finance in Indonesia

Shadow economy is a market for legal and illegal goods and services that escape recording and estimation of GDP. It can cause inaccurate estimation of GDP, declining tax revenue, and less precise economic policies. Improving the quality of human capital, both in education and health dimensions, can reduce shadow economy. The research aims to estimate shadow economy and analyze the influence of the quality of human capital on shadow economy in Indonesia. Applying time series multiple linear regression analysis, the findings show that the average shadow economy in Indonesia is 28.97 percent, changes in life expectancy negatively affect changes in …

Enhancing Resilience To Turbulent Global Financial Markets: An Indonesian Experience, Febrio Kacaribu

Economics and Finance in Indonesia

In the empirical literature, large and abrupt declines in capital inflows, or sudden stops, typically hit asset markets and generate output losses in the receiving countries. The significant decrease in capital flows to emerging markets in 2018 is a unique opportunity to test this premise. Using Indonesian data, we found that the sharp decline in capital inflows for over two consecutive quarters in 2018 had an adverse impact on the currency, equities, and bond markets, but no discernible output loss was recorded. Real GDP growth remained resilient throughout 2018 and held broadly steady at around 5 percent in the first …

Book Review: Central Bank Policy: Theory And Practice, Denny Irawan

Economics and Finance in Indonesia

No abstract provided.

Corporate Income Tax Rate And Foreign Direct Investment: A Cross-Country Empirical Study, Amalia Indah Sujarwati

Economics and Finance in Indonesia

This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003-2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.

Gender Differences In Children's Non-Leisure Activities: A Decomposition Analysis, Dayang Haszelinna Abang Ali

Economics and Finance in Indonesia

The prevalence of son preference indicates that girls will have less leisure time compared to boys. This study aims to examine gender differences in weekly hours in schooling, housework, and working among children in Indonesia using Tobit Model and decomposition model of Bauer & Sinning (2005), to test whether son preference explains the differences. The dataset was drawn from the fourth wave of Indonesia Family Life Survey (IFLS) in 2007. The results show significant gender differences in housework and working for children aged 5-14 years and insignificant gender gap in schooling for both age groups. These results confirm the existence …

The Impact Of Entrepreneurship On Economic Performance In Indonesia, Yohanes Kadarusman

Economics and Finance in Indonesia

Entrepreneurship is claimed to have a positive and significant effect on economic growth in developed countries, but less so in developing countries. Using the growth model, this study examines the impact of entrepreneurship on economic performance in Indonesia as indicated by economic growth and income per-capita from 1985 to 2017. The estimation result confirms the non-significant effect of the growth of entrepreneurial ventures on the growth of GDP per-capita. However, the accumulation of the ventures has a positive and significant effect on the level of GDP per capita. The different typology of entrepreneurial ventures in Indonesia provides some insight to …

Addressing Urban Income Inequality Through Education: A Case Study In Atlanta, Garrett Bronn

Finance Undergraduate Honors Theses

For decades, the income inequality gap between the rich and poor has continued to expand dramatically, with criticism of existing education systems often at the heart of the issue. Large urban cities are commonly at the forefront of the issue, given the plethora of teacher strikes in recent years. Events such as the 11-day Chicago teacher’s strike in October of 2019 that idled academics and college prep for 350,000 students, have highlighted many current education issues (Hauck, 2019). With underfunded and poorly equipped middle and high schools, students in poor and minority neighborhoods in cities are less prepared academically, ill …

Municipal Fiscal Distress In Pennsylvania: Assessing The Municipalities Financial Recovery Act 47 Of 1987, Terry Tracy

West Chester University Doctoral Projects

In the Commonwealth of Pennsylvania, the Department of Community and Economic Development administers a Municipal Financial Recovery program to improve outcomes in fiscally and socio-economically distressed cities. The program operates under the auspices of the Pennsylvania Municipal Recovery Act 47 of 1987.

It is designed to provide state and municipal governments the resources necessary to combat fiscal distress and economic decline, where municipalities lack the political or financial wherewithal to do so autonomously. Those resources include access to grant funding, special latitude over tax policy and fee structures not otherwise permitted by Pennsylvania’s Constitution, and developing a five-year fiscal recovery …

Culture Of Countries And Country-Index Crash Risk, Jason Petri

Williams Honors College, Honors Research Projects

Previously crash- risk studies have focused on assessing at the firm level the likelihood of a firm’s equity to crash (a rapid decline in value), apart from the dynamics of its respective country-level market. In this study, however, I examine the determinants of an overall countrylevel equity crash apart from the dynamics of the global market. I will argue that this is a very different focus of analysis that will provide valuable information to both investors and policy makers. Expansion of credit and subsequent equity-market bubbles and crashes are of particular concern to foreign direct investors (FDI), as country-level equity …