Mangasa Augustinus Sipahutar
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Effects of Credit on Economic Growth, Unemployment and Poverty Mangasa Augustinus Sipahutar
Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan Vol 17, No 1 (2016): JEP June 2016
Publisher : Muhammadiyah University Press

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23917/jep.v17i1.1651

Abstract

Abstract             Effect of credit on economic growth, unemployment and poverty provides evidence from Indonesia on the role of banks credit for promoting economic growth and reducing both unemployment and poverty.  To document the link between banks credit and economic growth, we estimate a VAR model and variance decompositions of annual GDP per capita growth rates to examine what proxy measures of banks credit are most important in accounting for economic growth over time and how much they contribute to explaining economic growth.  We also estimate an ECM to document the relationship between banks credit to both unemployment and poverty. This paper revealed bi-direction causality between banks credit and economic growth.  Banks credit promotes economic growth and economic growth affects credit depth and financial development.  Furthermore, banks credit is a growth accelerating factor on Indonesian economic growth.  Banks credit is an endogenous growth and a good predictor on Indonesian economy.Our estimation model explained that credit allocated by banks increases business escalation to the real sectors then promotes economic growth, decreases unemployment rate through increasing in labor demanded, increases income and then decrease poverty.  This overall transmission mechanism just occurred through presence of banks credit by increasing money supply to the real sectors, promotes growth and social welfare. Keywords :  banks credit, economic growth, growth accelerating factor, poverty, unemployment JEL Classification : E51, E52, E58
The Effect of Government Capital Expenditure on Banking Credit in KDT Regency (Lake Toba Region) Amelira Haris Nasution; Mangasa Augustinus Sipahutar; Aldon MHP Sinaga
Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences Vol 5, No 1 (2022): Budapest International Research and Critics Institute February
Publisher : Budapest International Research and Critics University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33258/birci.v5i1.4226

Abstract

The beauty of Lake Toba in North Sumatera makes Lake Toba one of the five Super Priority Destinations (DSP) promoted by the government in tourism development. This stipulation is expected to be able to improve the economy of the Lake Toba (KDT) region which is geographically inhabited by 7 (seven) sub-districts, which are directly adjacent to North Tapanuli Regency, Toba Regency, Simalungun Regency, Dairi Regency, Karo Regency, Humbang. Hasundutan Regency and Samosir Regency. The purpose of this study was to find out and analyze the answers related to the effect of government capital expenditure on bank credit around KDT Regency. The data used is secondary data in the form of time series data in KDT for the period 2000–2019 regarding the economic sector GRDP, bank credit and government capital expenditures. Data processing uses the E-Views 10 application through panel data analysis using data on the ratio of government capital expenditure and bank credit to nominal GRDP in all KDT areas. Based on the results of the analysis, the results of the variable ratio of government capital expenditure to nominal GRDP have a positive and significant effect of 0.161587 on banking credit to nominal GRDP from 2005 to 2019 in the KDT area. This shows that there is a relationship and influence of capital expenditure on banking credit in the KDT area during 2005-2019, which means that capital expenditure and the banking sector will be able to become a driver of economic growth, including in the development of the KDT area.