Jurnal Ekonomi Pembangunan

Financial Risk Determinants in Islamic Rural Banks: Static and Dynamic Models

Heri Sudarsono, Mohammad Hendrie Anto, Andika Perdana — Mon, 01 Jul 2024 00:00:00 +0700

This study aims to determine the effect of financial performance on the financial risk of the Islamic Rural Bank (IRB) in Indonesia. The data period used from 2012 to 2019 on 65 IRBs using static and dynamic panels. The static panel test uses the common, fixed, and random effects, while the static panel uses the SYS-GMM test. The test results of 8 models on the static panel show that the best model is to use the random effect. The dynamic panel test shows the results of the AB test, Sargan test, PLS test, and FE test; it can be seen that the equation model has a consistent estimator. The data processing results show that the activities of the IRB, profitability, and economic growth have a negative relationship to the financial risk of the IRB. Then, the efficiency level of the IRB and inflation did not affect its financial risk. Finally, the policy implications of IRB management should adopt a cautious approach to financial risk management by recognising the inherent dangers in funding and financing policies.

An Examination of Technology Acceptance to Sales Increase Through Marketplace in Bandar Lampung

Destiana, Jufri Yandes, Dwi Rahmawati, Syarif Fadillah — Mon, 17 Jun 2024 00:00:00 +0700

The Covid-19 pandemic is a global outbreak that has significantly impacted all aspects of life. The occurrence of various policy changes and the emergence of uncertainty pose a threat to MSMEs. Besides that, there are also changes in consumer lifestyle patterns that refer to the lifestyle of staying at home, creating a sense of empathy and social solidarity, switching to digital media, and consumers changing from the top of the pyramid (self-actualization and respect) to the bottom need for food. Based on these changes, MSMEs need to take appropriate steps that can be used as opportunities. Technology acceptance and adoption of marketplace applications are steps that can be taken to maintain sales levels. This research aims to test the acceptance of technology to increase sales through marketplace applications. This research was conducted in Bandar Lampung City by distributing questionnaires in a Google form to 95 Banana Chip MSMEs who had used the marketplace application. This type of research is descriptive quantitative using purposive sampling techniques. Then, the data that has been obtained is processed using SmartPLS 3.0. The results of this research show that technology acceptance has a significant effect on marketplace applications with a P-Value of 0.000, marketplace applications have a substantial effect on sales levels with a P-Value of 0.000, but technology acceptance has no significant impact on increasing sales with a P-Value of 0.311 and technology acceptance has a substantial effect towards growing sales through the use of marketplace applications with a P-Value of 0.000.

The Influence of Original Local Government Revenue and Capital Expenditures on Economic Growth and Community Welfare

Nurharibnu Wibisono, Suprayitno Eko , Asnawi Nur — Mon, 17 Jun 2024 00:00:00 +0700

This study examined how capital expenditures and Original Local Government Revenue (PAD) affected community well-being in Bakorwil 1 Madiun, East Java districts and cities between 2015 and 2022. The analysis was mediated by economic growth. This study's saturation sample comprised ten Bakorwil 1 Madiun districts/cities. The Directorate General of Fiscal Balance (DJPK) website of the Ministry of Finance of the Republic of Indonesia provided secondary statistics on the realization of capital expenditures (CE) and PAD. On the Central Statistics Agency (BPS) website, secondary statistics on community welfare (HDI) and economic growth (GRDP) are available for download in different district/city editions for Bakorwil 1 Madiun. Path analysis is used in data analysis. The study's findings indicate that PAD has a significant positive relationship with HDI and GRDP. CE has a significant negative effect on HDI and GRDP partially. GRDP has a considerable positive impact on HDI. GRDP mediates a significant positive effect of PAD on HDI. GRDP does not mediate the impact of CE on HDI.

Analysis of Economic Freedom, Foreign Direct Investment, and Economic Growth

Muhammad Lucky, Endraswati Hikmah — Mon, 08 Jul 2024 00:00:00 +0700

This research analyzes the relationship between economic freedom, foreign direct investment (FDI), and economic growth using the Vector Error Correction (VECM) model and the Granger causality test. Panel data from several free trade agreement countries in the Regional Comprehensive Economic Partnership (RPEC) for 1997 – 2022. VECM captures cointegration relationships and models short-term adjustments toward long-term balance. Meanwhile, the Granger causality test helps identify the direction of the causal relationship between economic freedom, FDI, and economic growth. Empirical results show a long-term but weak cointegration relationship between these variables in the short term. In addition, it was found that there is a two-way causality between economic freedom and economic growth, as well as between FDI and economic growth. These findings imply that policies encouraging economic freedom and attracting foreign investment can increase a country's economic growth. This research provides empirical insights into the important role of economic freedom and FDI in driving economic growth and related policy implications for creating an environment conducive to investment and sustainable economic growth.

Impact of Foreign Direct Investment, Productivity, and Growth on Indonesian Youth Unemployment

Fri, 21 Jun 2024 00:00:00 +0700

Unemployment is a consistent economic challenge faced by all countries. Indonesia, as a developing country, grapples with unemployment issues predominantly affecting young individuals. This research aims to examine the impact of Foreign Direct Investment (FDI), economic growth, and labor productivity on youth unemployment in Indonesia. Annual time series data from 1991 to 2022 were analyzed using Autoregressive Distributed Lag (ARDL) technique. The study reveals a significant negative relationship between economic growth and labor productivity with youth unemployment in the long term. Meanwhile, in the short term, FDI and labor productivity have a significant positive impact on youth unemployment. It is hoped that the Indonesia government will prioritize the creation of job opportunities for young domestic workers and provide training to enhance the quality of youth workforce in Indonesia

The Influence of Financial Behavior on Financial Well-Being Through Financial Satisfaction

Ida Subaida — Fri, 21 Jun 2024 00:00:00 +0700

Good financial behavior will encourage the creation of financial satisfaction and can be a factor that will increase financial well-being. Financial satisfaction can include one's life satisfaction with financial amounts. Financial well-being is the possession of sufficient resources for a comfortable life. This study aims to examine financial behavior that influences financial well-being, both directly and indirectly. The selected population is stock investors. Investors are selected using quota sampling. The data analysis used is path analysis. The results of the study report that financial behavior has a significant effect on financial satisfaction and well-being, but financial behavior does not affect financial well-being. Financial satisfaction mediates the impact of Financial behavior on Financial well-being.

The Influence of Macroeconomic Variables on Foreign Direct Investment in the Manufacturing Industry Sector in Indonesia

Nidya Ayu Setya Ningrum, Inayati Nuraini Dwiputri — Sat, 06 Jul 2024 00:00:00 +0700

The purpose of this research is to examine the effect of macroeconomic variables in the form of economic growth, inflation, exchange rates, interest rates, and the money supply on Foreign Direct Investment in the manufacturing industry sector in Indonesia and see whether the presence of the Covid -19 pandemic has affected FDI in the manufacturing sector in Indonesia. Indonesia in the short and long terms. This research was conducted for 13 years every quarter, starting in 2010-2022, because, since 2010 until now, the manufacturing sector has made the most significant contribution to Indonesia's GDP. This study was analyzed using Autoregressive Distributed Lag (ARDL) with a dummy variable. The research results show that short-term economic growth increases FDI in Indonesia's manufacturing sector. The variables of inflation, interest rates, total money in circulation, and the COVID-19 pandemic have implications for reducing FDI flows in the manufacturing sector in Indonesia. Meanwhile, the exchange rate does not significantly affect FDI in Indonesia's manufacturing sector. In the long term, economic growth and inflation variables increase the flow of FDI in the manufacturing sector. Interest rates have had the effect of reducing FDI flows in Indonesia's processing industry sector. Meanwhile, the exchange rate, total money in circulation, and the COVID-19 pandemic have no long-term impact on FDI in Indonesia's manufacturing industry sector in the long term.