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Journal : JDE (Journal of Developing Economies)

Intention of Muslim Millennials to Invest in Islamic Peer-to-Peer Lending in Indonesia Ajija, Shochrul Rohmatul; Salama, Sri Cahyaning Umi
Journal of Developing Economies Vol. 9 No. 2 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i2.51449

Abstract

Fintech Peer-to-peer (P2P) lending sharia is an evolution of sharia financial institutions through the use of technology in its operational processes. The millennial generation who grew up with technology has a greater talent in utilizing technology and has deeper insights compared to the previous generation. The purpose of this study is to analyze the determinants that influence Muslim millennials to invest in the Islamic P2P lending sector and determine strategies to improve its effectiveness. Latent variables Attitude Towards Behavior (AT), Subjective Norm (SN), Perceived Behavioral Control (PBC), Financial Literacy (FL), and Behavioral Intention (BI) are selected and analyzed using Structural Equation Modeling (SEM) using SmartPLS. This study used an accidental sampling method which was carried out for 30 days of data collection, where 200 respondents were collected. The respondents were specifically the millennial Muslim generation who had invested in financial institutions at least once. The results showed that all latent variables had a significant influence and PBC had the largest contribution. There are three latent variables that have a significant positive effect on BI, namely AT, PBC, and FL. Meanwhile, only SN has a significant negative effect on BI. Therefore, it is necessary to increase literacy in the Indonesian community. Regulators and implementers must collaborate and synergize in improving Islamic financial literacy in Indonesia. For further research development, other variables or samples from different groups can be used to further enrich literacy in Islamic P2P lending.
Impact of Covid-19 Cases on Inflation in ASEAN Wulandari, Chindy Roifatin; Ajija, Shochrul Rohmatul
Journal of Developing Economies Vol. 8 No. 2 (2023)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v8i2.45863

Abstract

This study is aimed to examine the impact of the total cases of COVID-19, interest rates, and money supply on inflation in ASEAN-5. Using the Panel Vector Error Correction Model (PVECM), the study reveals that the number of COVID-19 cases has a negative impact on inflation in ASEAN-5 both in the short and long run. The higher the total cases, the lower the inflation in the region. This was caused by a shock from the demand aspect due to the large number of people who were not working, so that household income decreased. A decrease in income will certainly impact on a decrease in demand which will affect equilibrium inflation. In addition, some control variables such as interest rates have a negative effect on inflation in the long run. Meanwhile, the money supply has no significant effect on inflation during the pandemic.