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Journal : JDE (Journal of Developing Economies)

Debt and Economic Growth: The Case of Indonesia Sari, Vita Kartika
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.25722

Abstract

Debt is an intriguing state financing to be studied and analyzed because debt can have positive or negative impacts. Sources of debt can be from the issuance of domestically-sold bonds or foreign investment. Indonesia uses debt instruments to address the fiscal gap and increase capital for economic development. This study aims to analyze the impact of debt on Indonesia's economic growth and investment during the 1970-2018 period, using the Autoregressive Distributed Lag (ARDL) method. The study found that debt had a negative effect on GDP in the short and long run. Meanwhile, it did not affect investment in the short run but had a negative effect in the long run. The study model also had good stability as a result of Cusum and Cusum of Squares testing. Thus, appropriate debt management policies are needed to support economic growth.
The Role of Economic Development in Export Performance in Islamic Countries Sari, Vita Kartika; Yaumidin, Umi Karomah
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.50958

Abstract

The necessity for a reevaluation of international trade has become increasingly apparent, particularly in Islamic countries. This study aims to estimate the economic development of selected Islamic countries, namely Egypt, Indonesia, Malaysia, Pakistan, Turkey, the United Arab Emirates, Brunei Darussalam, and Kuwait, in terms of export performance. This study was conducted within the broader context of Islamic countries, with a specific focus on analyzing dynamic panel data from 2010 to 2019. The dependent variable included exports of goods and services, while the regressors included GDP growth, broad money, and inflation. An estimation based on the panel generalized method of moments revealed a significant effect of export (-1) on export, a significant and negative impact of broad money on export, and a significant and positive effect on inflation. In contrast, GDP growth was not found to be significant. These findings are consistent with the high number of global Muslim consumers and the growth of Islamic finance assets. Currently, Islamic countries are prioritizing product diversification for both the Muslim and global markets. These findings indicate the need for increased economic development to achieve the practical implications of sustainable economic growth in Islamic economies.