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Journal : Economic Development Analysis Journal

Socio-Economic and Property Crime Rate in Indonesia Dwi Tiva Anozi; Besti Novianda
Economics Development Analysis Journal Vol 12 No 3 (2023): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v12i3.68829

Abstract

This study aims to analyze the effects of socio-economic factors (inequality in income distribution, poverty, unemployment, and population) on crime rates in 31 provinces in Indonesia. The article utilizes yearly data published by the Central Bureau of Statistics (BPS-Indonesia) from 2013 to 2022. This study examines the socio-economic effects on crime rates using the two-step System Generalized Method of Moments (SYS GMM). The estimation shows that the lag in the number of property crimes positively and significantly affects property crime in Indonesia. This result indicates a dynamic relationship with the property crime rate. Moreover, poverty, unemployment, and total population positively and significantly affect short- and long-run property crime rates. However, the Gini index shows a positive correlation but lacks significance in both short- and long-term effects. These estimation results recommend that efforts be made to alleviate poverty and ensure equitable income distribution. Poverty and inequality reduction need to be pursued by all parties, especially the government, through initiatives aimed at expanding employment opportunities and sustainably empowering the community's economy.
Household Consumption and Electronic Money Transactions in Indonesia: VECM Approach Azilla, Widya; Novianda, Besti
Economics Development Analysis Journal Vol 13 No 1 (2024): Economics Development Analysis Journal
Publisher : Economics Development Department, Universitas Negeri Semarang, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.15294/edaj.v13i1.78819

Abstract

The high contribution of household consumption to GDP reflects the significant level of public consumption in Indonesia. This is evident from the annual increase in transactions through digital payment system, which facilitate easier for people to consume goods and services. Previous studies have offered various perspectives on the impact of electronic money transactions on household consumption, in both the short and long run. Therefore, this study aims to analyze the relationship between electronic money transactions and household consumption in Indonesia. By employing the Vector Error Correction Model (VECM) and examining data from 2009Q1 to 2022Q4, the study aims to provide insights into the dynamics of short-term and long-term relationships among electronic money transactions, household consumption expenditure, real income, and interest rates. Based on the results in the short term, it was found that electronic money and real income are positively related to household consumption expenditure in Indonesia. With the increase in electronic money transactions and people's income levels rising, households tend to spend more money, contributing to increased societal consumption. However, this positive relationship does not persist in the long term, suggesting that electronic money does not significantly impact household spending patterns over extended periods. Real income, on the other hand, continues to have a consistent effect in the long term. Furthermore, interest rates do not significantly influence consumption expenditure in either the short or long term. This implies that changes in interest rates do not notably affect consumer behaviour regarding spending habits in Indonesia.