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THE LONG-TERM EFFECT OF FOREIGN DEBT AND FOREIGN DIRECT INVESTMENT (FDI) ON ECONOMIC GROWTH IN INDONESIA Meilisa Meilisa; Hefrizal Handra; Efa Yonnedi
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 3 No. 2 (2024): MARCH
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v3i1.1004

Abstract

In light of Indonesia's status as a developing nation with constrained financial resources, the imperative for strategic decision-making by the government to foster sustained economic growth becomes evident. This research delves into an analysis of the enduring repercussions of foreign debt and foreign direct investment (FDI) on Indonesia's economic landscape. The study employs a comprehensive examination of time series data spanning from 1990 to 2022, employing both the Bounds test cointegration approach and the ARDL model to scrutinize the dynamics at play. The empirical findings underscore the multifaceted influence of foreign debt and FDI on Indonesia's economic growth, illustrating that these factors exert both short- and long-term impacts. Moreover, the research identifies the export control variable as a pivotal factor, indicating an immediate effect on Indonesia's economic development albeit without a lasting impact. Consequently, this unveils a nuanced interplay of variables that contribute to the nation's economic trajectory. In light of these insights, the study posits that the Indonesian government must adopt a judicious and discerning approach in formulating and executing policies related to exports, foreign debt, and FDI. Recognizing the dual temporal impact of foreign debt and FDI, policymakers are urged to balance short-term economic imperatives with a commitment to long-term sustainable growth. The immediate influence of the export control variable further underscores the need for agile and adaptive policy management to navigate the intricacies of Indonesia's economic landscape.
An Analysis of the Impact of Regional Taxes, Social Assistance Expenditures, and Income Inequality on Economic Growth in Regencies/Cities in Aceh Province Yunidar Purnama Sari; Hefrizal Handra; Efa Yonnedi
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 4 No. 1 (2024): DECEMBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v4i1.1532

Abstract

This study aims to analyze the impact of regional taxes, social assistance expenditures, and income inequality on the economic growth of regencies/cities in Aceh Province for the 2020-2023 period using a panel regression model. The analysis results indicate that regional taxes have a positive and significant impact on economic growth, where increased regional taxes contribute to the development of critical infrastructure and public services. Furthermore, social assistance expenditures also enhance household purchasing power, which directly boosts local economic growth. However, income inequality has a negative and significant impact on growth, as rising inequality hinders public access to education and healthcare and creates social instability. These findings underscore the importance of effective management of regional taxes and social assistance programs, as well as the need for policies to reduce income inequality as a strategy to promote inclusive and sustainable economic growth in Aceh. This study provides recommendations for local governments to formulate more progressive policies in managing economic resources for the welfare of society.
The Impact of the Non-Cash Food Assistance (BPNT) Program on Household Welfare in Indonesia Meriska Suwatri; Hefrizal Handra; Efa Yonnedi
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 4 No. 1 (2024): DECEMBER
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v4i1.1537

Abstract

One of the government’s steps to address poverty through food security is the launch of the Non-Cash Food Assistance (BPNT) program. This study evaluates the impact of the Non-Cash Food Assistance (BPNT) program on household welfare in Indonesia. Utilizing logistic regression analysis and data from the 2017 National Socio-Economic Survey, the research reveals that participation in the BPNT program has a significant negative effect on household welfare. Recipients of BPNT are 8.366% less likely to achieve prosperity compared to non-recipients. This outcome underscores the need to address additional factors influencing welfare, such as education, employment opportunities, and access to social services. While the BPNT program effectively provides food assistance, its design and implementation require improvements to better support recipients in overcoming economic challenges. Enhancing the program's scope and efficiency is essential for achieving its objective of sustainable poverty alleviation and improving welfare outcomes for vulnerable households in Indonesia.