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The Impact of the US-China Economy on the Economic Growth of OIC Member Countries Fakhrunnas, Faaza; Fadillah, Abi
Global Review of Islamic Economics and Business Vol. 11 No. 1 (2023)
Publisher : Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.14421/grieb.2023.111-09

Abstract

As countries having sizeable economic scale, the US and China have significant contributions as well as influence on the world economy. Hence, the economic activities performed by both countries have a higher possibility to affect other countries’ economic conditions due to the presence of economic integration among the countries. The study aims to investigate the US-China economy impact which is proxied by a balance of trade (BOT), net foreign direct investment (FDI), and exchange rate (ER) on the economic growth of OIC member countries (EG). The study utilizes data from 1979-2018 and adopts Autoregressive Distributed Lag (ARDL) then applies a bounds testing approach to measure the short and long-run relationship between independent and dependent variables. The finding of the study shows that there is a long-run cointegration between the US-China economy impact on the economic growth of OIC member countries. The short-run ARDL model also indicates that all the independent variables have a significant relationship with the economic growth of OIC member countries across the regions. Originality/Value: The study comprehends as well as provides a new insight on the influence of the US and China's economic activities on OIC member countries’ economies.
Manufacturing Village Development for Structural Transformation: A Policy Design Study for Indonesia Fadillah, Abi; Wibowo, Bintang Satrio
Journal of Business and Economics Research (JBE) Vol 7 No 1 (2026): February 2026
Publisher : Forum Kerjasama Pendidikan Tinggi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47065/jbe.v7i1.9359

Abstract

National development constitutes a constitutional mandate to achieve social welfare, as affirmed in the Preamble of the 1945 Constitution of the Republic of Indonesia. Nevertheless, Indonesia’s development trajectory has remained predominantly growth-oriented, resulting in persistent structural disparities between urban and rural areas. Although policy initiatives such as the Asta Cita framework and village fund allocation have been implemented, the economic contribution of rural areas to national Gross Domestic Product (GDP) remains limited. At the same time, the declining share of manufacturing at the national level signals emerging deindustrialization. This condition highlights the absence of an integrated rural-based industrialization model capable of driving structural transformation. This study adopts a policy design approach based on normative policy analysis and comparative institutional review. The analytical procedure involves synthesizing structural transformation theory, examining Indonesia’s regulatory framework on rural and industrial development, and reviewing selected international experiences to construct a contextually relevant policy design. The study does not employ primary or econometric data, but develops a structured policy design derived from theoretical and institutional analysis. The paper proposes the policy of a Manufacturing Village as a region-based development paradigm aimed at strengthening manufacturing activities in rural areas through the integration of bottom-up participation and top-down coordination. Contribution of this research lies in extending structural transformation discourse toward a village-level governance framework and providing an operational institutional architecture that connects national industrial policy with rural administrative systems. The proposed framework is expected to enhance rural value-added production, expand non-agricultural employment, reduce regional disparities, and support inclusive and sustainable structural transformation in Indonesia.