M. Shabri Abd. Majid
Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh 23111, Indonesia

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The Impact of Economic Freedom on the Economic Complexity of Trade in Indonesia Cut Syazalisma; Suriani Suriani; M. Shabri Abd. Majid
Grimsa Journal of Business and Economics Studies Vol. 3 No. 2 (2026): July 2026
Publisher : Graha Primera Saintifika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61975/gjbes.v3i2.120

Abstract

This study investigates the impact of economic freedom on the economic complexity of trade in Indonesia, an issue that is increasingly relevant for understanding structural transformation in resource-dependent economies. While the existing literature has separately examined the role of economic freedom in promoting growth and the importance of economic complexity for development, limited attention has been given to how economic freedom influences the sophistication and diversification of exports, particularly in the Indonesian context. Using annual data from 1998 to 2024, this study employs the Economic Complexity Index as the dependent variable and the Economic Freedom Index as the main independent variable, with GDP per capita, FDI inflows, and trade openness included as control variables. The analysis applies Robust Least Squares method, incorporating M-estimation, S-estimation, and MM-estimation techniques to ensure the robustness of the results. The findings reveal that economic freedom has a negative and statistically significant effect on economic complexity, suggesting that liberalization may reinforce specialization in low-complexity, resource-based sectors rather than promote export diversification. In contrast, GDP per capita positively influences economic complexity, while FDI inflows and trade openness do not exhibit significant effects. These results indicate that external integration and market liberalization alone are insufficient to enhance export sophistication without supportive domestic structural conditions. This study highlights the need for policymakers to complement market-oriented reforms with targeted industrial and institutional policies that promote economic diversification, capability accumulation, and technological upgrading to enhance export sophistication.
Gender Inequality and Economic Growth in Aceh: Evidence from Panel Data Analysis M. Saleh; Suriani Suriani; M. Shabri Abd. Majid
Grimsa Journal of Business and Economics Studies Vol. 3 No. 2 (2026): July 2026
Publisher : Graha Primera Saintifika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61975/gjbes.v3i2.121

Abstract

This study examines the impact of gender inequality on economic growth in Aceh Province, Indonesia, where persistent gender disparities may hinder regional economic performance by limiting human capital development and economic participation. Despite increasing attention to gender issues in Indonesia, empirical evidence for Aceh remains limited. Using panel data from 23 districts/cities in Aceh Province during 2018-2025, this study employs a random effects model to analyze the effect of the Gender Inequality Index on economic growth. The analysis also incorporates control variables, including the open unemployment rate, labor force participation rate, and human development index. The empirical findings reveal that gender inequality has a negative and statistically significant effect on economic growth in Aceh, indicating that higher levels of gender inequality tend to reduce regional economic performance. These findings imply that reducing gender inequality is essential for achieving sustainable and inclusive economic growth. Therefore, policymakers should strengthen gender-inclusive development policies, expand women’s access to education and employment opportunities, and encourage greater female participation in economic activities to support long-term regional development.
Revisiting the Growth-Human Development-Poverty Nexus in Banda Aceh: Evidence from 2000 to 2024 Talbani Farlian; M. Shabri Abd. Majid; Suriani Suriani; Meutia Handayani; M. Fatahul Dzakwan
Grimsa Journal of Business and Economics Studies Vol. 3 No. 2 (2026): July 2026
Publisher : Graha Primera Saintifika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61975/gjbes.v3i2.123

Abstract

This study revisits the relationship among regional economic welfare, human development, and poverty in Banda Aceh City, Indonesia, over the period 2000-2024. Poverty is specified as the dependent variable, while Gross Regional Domestic Product (GRDP) per capita and the Human Development Index (HDI) are specified as the independent variables. The study is situated within the growth-poverty, human development, and inclusive growth literature and is motivated by the substantial structural transformation experienced by Banda Aceh following the 2004 tsunami, post-disaster reconstruction, service-sector expansion, and post-pandemic recovery. Using annual secondary data obtained from official statistical publications and multiple linear regression analysis, the findings indicate that GRDP per capita has a positive and statistically significant association with poverty, whereas HDI has a negative and statistically significant association with poverty. The positive GRDP-poverty relationship suggests that rising average regional income has not automatically translated into pro-poor outcomes, possibly because the benefits of economic growth have been unevenly distributed or concentrated in sectors with limited absorption of low-income labor. Conversely, the negative HDI-poverty relationship underscores the importance of human capital, health, education, and welfare-enhancing capabilities in reducing poverty. This study contributes city-level evidence from Aceh and highlights the need to shift the policy emphasis from aggregate output expansion toward inclusive, labor-absorbing, and human development-oriented growth.
Governance Quality and Innovation Capability: Insights from Indonesia Irsan Hardi; M. Shabri Abd. Majid; Talbani Farlian; M. Saleh; Andri Suriansyah; Cut Syazalisma; Naftaly Mose
Grimsa Journal of Business and Economics Studies Vol. 3 No. 1 (2026): January 2026
Publisher : Graha Primera Saintifika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61975/gjbes.v3i1.103

Abstract

Innovation is a key driver of national competitiveness, and its advancement increasingly relies on the strength of governance quality. However, empirical evidence linking governance performance to national innovation outcomes in the Indonesian literature remains limited. This study addresses this gap by assessing how the Worldwide Governance Indicators (WGI), used as a proxy for governance quality, affect Indonesia’s innovation capability as measured by the Global Innovation Index (GII). The analysis also incorporates additional factors that commonly influence innovation capabilities, including economic growth, foreign direct investment, and the labor force. By adopting a decomposition model to evaluate the individual contributions of each WGI dimension, and employing Gaussian Identity-link GLMs and robust least squares methods, the results show that governance quality overall has a positive and significant effect on Indonesia’s GII. When each component of the WGI is assessed individually, most dimensions display positive effects, with voice and accountability, political stability, and rule of law showing notably significant impacts. These findings imply that strengthening governance structures, particularly in transparency, stability, and legal certainty, is essential for advancing Indonesia’s innovation capability.
Sectoral Economic Mapping and Structural Transformation in the BASAJAN Corridor: A Spatial Policy Matrix Approach Andri Suriansyah; Suriani Suriani; M. Shabri Abd. Majid
Grimsa Journal of Business and Economics Studies Vol. 3 No. 2 (2026): July 2026
Publisher : Graha Primera Saintifika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61975/gjbes.v3i2.122

Abstract

Post-pandemic fiscal constraints within the BASAJAN (Banda Aceh, Sabang, and Jantho, Aceh Besar) economic corridor require precise, evidence-based policies to prevent inefficient public investment. This study maps sectoral economic structures and structural transformation to develop a spatial policy matrix for identifying priority sectors. Using constant-price Gross Regional Domestic Product (GRDP) data for the period 2019–2024 across 17 economic sectors, the study integrates the Location Quotient (LQ) and Sectoral Klassen Typology analyses. This approach produces a four-quadrant policy matrix comprising Prime Mainstay, Sustaining Mainstay, Potential, and Lagging Sectors. The empirical findings reveal a highly complementary spatial division of labor across the corridor. Banda Aceh functions as the primary tertiary agglomeration center for services and finance, Sabang exhibits strong specialization in maritime tourism, and Aceh Besar serves as the principal hinterland supporting food security and manufacturing. The findings indicate that a uniform development strategy across the BASAJAN corridor is unlikely to be effective. Therefore, local planning agencies (Bappeda) should prioritize fiscal allocations toward their respective Prime Mainstay Sectors. Furthermore, greater integration of Regional Spatial Planning (RTRW) across jurisdictions is essential to strengthen interconnected regional supply chains within the BASAJAN corridor.
Energy Dependence, Trade Balance, and Current Account Sustainability: Evidence From ASEAN-5 Maulidar Agustina; M. Shabri Abd. Majid; Zia Thahira; Lidyana Dinda; Aulia Khairullah; Dwita Sakuntala
Ekonomikalia Journal of Economics Vol. 3 No. 2 (2025): October 2025
Publisher : Heca Sentra Analitika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.60084/eje.v3i2.341

Abstract

This study investigates how energy dependence and trade structure influence current-account sustainability in the ASEAN-5 (Indonesia, Malaysia, Thailand, the Philippines, and Vietnam) over 2014–2023. Focusing on the region’s vulnerability to energy price volatility and evolving trade patterns, the analysis evaluates long- and short-run relationships between the current account, energy trade balance, overall trade balance, real GDP per capita, and exchange rate movements. A panel Autoregressive Distributed Lag (ARDL) model with a Pooled Mean Group (PMG) estimator is applied, and long-run robustness is verified using panel Fully Modified Ordinary Least Squares (FMOLS). The results confirm a stable long-run equilibrium in which both energy and non-energy trade balances significantly and positively contribute to current-account positions. Higher real income and a depreciated exchange rate are also associated with sustained current-account improvements, reflecting capacity expansion and expenditure-switching effects. Short-run adjustments differ across countries, shaped by their import dependence, energy mix, and external balance-sheet conditions. Robustness checks affirm the stability of the estimated long-run relationships. These findings highlight the importance of strengthening energy trade resilience, enhancing non-energy tradable sectors, and maintaining prudent exchange-rate flexibility to support external sustainability in the ASEAN-5.