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Does Switching Cost Affect Dual Rural Banks Market Power? Fajri, Moh Najikhul; Purwono, Rudi
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.v7i2.36547

Abstract

This study aims to review the effect of switching costs on rural bank market power. This study is using dynamic panel regression of the Generalized Method of Moments (GMM). This paper used panels of 1266 rural banks and 113 Sharia Rural banks from 2013 to 2019. To further analyze this study using Lerner Index as proxies of market power, Bertrand Competitions models as proxies of switching costs, and banking indicators covering bank size, equity, non-interest income, and the burden of allowance for productive assets (Lost Loans Provision). The results show that switching costs have a significant positive effect on the conventional rural bank and negatively affect sharia rural bank's market power. This condition is caused by various reasons, namely the limited choice of rural banks so that consumers survive the switching costs charged. Meanwhile, in sharia rural bank transparency is clearly seen on the side of mudharobah and musyarakah which makes it unable to increase financing margins freely.
Analysis of the Effects of Macroeconomic Variables on Non-Performing Credit Risk in Emerging Market Asia 2010-2018 Dewi, Karina Puspa; Purwono, Rudi
Jurnal Ilmu Ekonomi Terapan Vol. 5 No. 2 (2020)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v5i2.23616

Abstract

The purpose of this study is to determine and analyze the influence of macroeconomic variables on the risk of non-performing loans with case studies in Emerging Markets Asia in the period 2010 to 2018. The risk of non-performing loans representing banking stability is measured using Non-Performing Loans (NPLs). Meanwhile, macroeconomic variables that represent economic stability consist of Gross Domestic Product (GDP), Exchange Rates, Loan Interest Rates, Inflation, and Domestic Credit to Private Sector. Data obtained online through the World Development Indicator Database is then estimated using dynamic panel regression or Generalized Method Of Moment (GMM). The results of this study indicate that the variable GDP, Exchange Rate, and Inflation negatively affect NPL. Meanwhile, variable interest rates on loans and the Domestic Credit to the Private Sector have a positive effect on NPLs. Keywords: Macroeconomic Variables, Non Perfoming Loan, GMM JEL: C30; F40
TECHNOLOGICAL GAP AND FOREIGN DIRECT INVESTMENT SPILLOVERS IN INDONESIA Purwono, Rudi; Nur Hamzah, Ibnu; Yasin, Mohammad Zeqi
Jurnal REP (Riset Ekonomi Pembangunan) Vol. 9 No. 1 (2024): April 2024
Publisher : Universitas Tidar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31002/rep.v9i1.1274

Abstract

This study investigates the relationship between the technology gap and Foreign Direct Investment (FDI) spillovers in Indonesia. This study employs Medium-Large Manufacturing Survey Data from Statistics Indonesia and employs the standard least-square method to estimate the correlation between the technological gap and industries’ productivity change between 2010 and 2015. This study groups industries based on their technological gap (i.e. the difference between domestic and foreign establishment productivity) into low-technology-gap, medium-technology-gap, and high-technology gap. This study reveals that the effect of the technological gap is higher in the moderate-technology-gap group of industries and that there is a statistically significant positive relationship in the low-technology-gap and high-technology-gap groups. This finding indicates that the technological gap matters for FDI spillovers in Indonesia’s manufacturing and it can explain why there is spillovers from FDI in several industries. This study also reveals that industries with higher level of technological gap tend to have higher variation in productivity change, thus it can explain the difference between industries absorptive capacity. Therefore, promoting FDI inflows in the country also fosters domestic firms’ productivity growth especially FDI with relatively higher technology than domestic firms. These findings also recommend that the government support domestic firms’ absorptive capacity after promoting FDI inflow into the country.
Debt And Happiness: A Generalized Order Logit Analysis Purwanto, Edy; Purwono, Rudi; Sukartini, Ni Made
Journal of Developing Economies Vol. 10 No. 2 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i2.70785

Abstract

Objective: Financial literacy can influence borrowing attitudes and behaviors. Low financial literacy among Indonesians may impair debt manageability and lead to psychological distress. This empirical research aimed to analyze the effects of debt on happiness in Indonesia. Methods: This study used cross-sectional data from the 2007 Indonesia Family Life Survey (IFLS). Happiness was measured on a four-point ordinal scale, namely very unhappy (1), unhappy (2), happy (3), and very happy (4). Given the nature of the dependent variable, a generalized ordered logit model was applied to estimate the relationship between debt and happiness. This approach is well-suited to address the study objective by capturing varying effects across different levels of happiness. Findings: Results showed a significant negative relationship between debt and happiness (coefficient = -0.145, p < 0.01). The marginal effect indicated that debt reduced the likelihood of being happy and very happy by -0.20% and -0.83%, respectively. Depression had the strongest negative impact (-5.67%), while marriage (4.03%), household economic adequacy (3.40%), health care (2.31%), and physical health (1.99%) were the positive contributors. Originality/Value: This study contributed to the limited research examining the link between debt and well-being in developing economies, focusing on Indonesia’s socioeconomic and cultural context. Practical/Policy implication: Financial literacy needs to be enhanced to improve borrowing decisions and debt management among Indonesians. Strengthening financial education programs and regulating non-formal lenders are essential to prevent exploitative lending practices. Moreover, integrating debt awareness into mental health programs and disseminating information through mass and social media can help mitigate the psychological impact of debt.
Sistem Pelindungan Indikasi Geografis dan Pengetahuan Tradisional Berbasis Komunitas di Indonesia: Telaah Kritis Biopiracy Basmati Perwira, Putri; Aisyah, Rr. Herini; Purwono, Rudi
Reflection Journal Vol. 5 No. 2 (2025): Desember
Publisher : Lembaga Penelitian dan Pemberdayaan Masyarakat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.36312/qz461b54

Abstract

Kasus biopiracy beras Basmati oleh RiceTec Inc. menunjukkan bahwa rezim HAKI internasional, khususnya TRIPS, masih memberikan ruang bagi perusahaan multinasional untuk mengeksploitasi sumber daya hayati dan pengetahuan tradisional negara berkembang. Indonesia sebagai negara megabiodiversitas menghadapi kerentanan serupa akibat lemahnya dokumentasi, pelindungan hukum, dan diplomasi indikasi geografis. Penelitian ini bertujuan menganalisis perkembangan dan implikasi kasus biopiracy Basmati terhadap tata hukum HAKI internasional serta merumuskan strategi reformasi untuk memperkuat pelindungan indikasi geografis dan pengetahuan tradisional di Indonesia. Metode penelitian menggunakan pendekatan sosio-legal melalui analisis normatif terhadap peraturan perundang-undangan, dokumen internasional, serta literatur akademik mengenai pelindungan pengetahuan tradisional dan indikasi geografis. Hasil penelitian menunjukkan bahwa kasus Basmati mengungkap kelemahan struktural TRIPS dalam melindungi pengetahuan tradisional dan varietas tanaman lokal. Kerangka hukum Indonesia juga masih terfragmentasi dan belum menyediakan pelindungan yang terintegrasi antara indikasi geografis, varietas tanaman, dan kekayaan intelektual komunal. Ketiadaan basis data nasional yang setara dengan Traditional Knowledge Digital Library melemahkan posisi Indonesia dalam menghadapi klaim pihak asing. Penelitian ini berkontribusi terhadap reformasi hukum berbasis komunitas, penguatan kelembagaan, dan diplomasi HAKI yang lebih proaktif untuk mencegah biopiracy serta memperkuat pelindungan atas kekayaan hayati dan budaya Indonesia. Rekomendasi penelitian yaitu pembangunan basis data pengetahuan tradisional, penguatan mekanisme indikasi geografis, peningkatan kapasitas komunitas produsen, dan optimalisasi diplomasi internasional guna mencegah praktik biopiracy dan memastikan pelindungan yang adil terhadap kekayaan hayati dan budaya Indonesia. Community-Based Geographical Indication and Traditional Knowledge Protection System in Indonesia: A Reflection on Basmati Biopiracy The biopiracy case involving Basmati rice by RiceTec Inc. demonstrates that the international intellectual property regime, particularly TRIPS, still provides space for multinational corporations to exploit the biological resources and traditional knowledge of developing countries. Indonesia, as a megabiodiversity country, faces similar vulnerabilities due to weak documentation, legal protection, and geographical indication diplomacy. This study aims to analyze the development and implications of the Basmati biopiracy case for the international IP law framework and to formulate reform strategies to strengthen the protection of geographical indications and traditional knowledge in Indonesia. The research employs a socio-legal approach through normative analysis of national legislation, international legal documents, and academic literature on traditional knowledge and geographical indications. The findings reveal that the Basmati case exposes structural weaknesses within TRIPS in protecting traditional knowledge and local plant varieties. Indonesia’s legal framework is also fragmented and has yet to provide integrated protection linking geographical indications, plant varieties, and communal intellectual property. The absence of a national database equivalent to the Traditional Knowledge Digital Library further weakens Indonesia’s position in responding to foreign claims. This study contributes to community-based legal reform, institutional strengthening, and more proactive IP diplomacy to prevent biopiracy and enhance the protection of Indonesia’s biological and cultural resources. The recommended strategies include developing a national traditional-knowledge database, strengthening geographical indication mechanisms, increasing the capacity of producer communities, and optimizing international diplomacy to prevent biopiracy and ensure equitable protection of Indonesia’s biodiversity and cultural heritage.
Health Policies: Bolstering Human Resources & Healthcare Systems to Reduce Crude Death Rates in 2⁶ Countries Mohamed Sesay; Rudi Purwono; Ni Made Sukartini
Jurnal Ekonomi Kuantitatif Terapan Vol. 18 No. 02 (2025): Agustus 2025
Publisher : Universitas Udayana

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24843/JEKT.2025.v18.i02.p01

Abstract

This study examines the key determinants of crude death rates (CDR) in selected Countries within Africa, Asia, Europe, and Latin America, emphasising statistical correlations, policy implications, and regional disparities. Using econometric analysis, the study finds that increased life expectancy, higher government healthcare expenditure, and GDP per capita growth significantly reduce mortality rates. Labour force participation and access to potable water further influence mortality trends. However, African and some Asian nations experience higher CDRs due to weak healthcare infrastructure and economic constraints. The findings underscore the need for sustained investment in healthcare systems, human capital development, and policy-driven interventions to mitigate mortality risks and improve public health. This study provides empirical evidence to guide policymakers in designing targeted health policies that enhance healthcare equity and long-term health outcomes.