Purna, Fitra Pasapawidya
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Analysis of financial inclusion and financial stability on economic development in APEC member countries Putri, Nadhia Hananti; Sukarniati, Lestari; Asmara, Gea Dwi; Purna, Fitra Pasapawidya
Optimum: Jurnal Ekonomi dan Pembangunan Vol. 14 No. 2 (2024)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/optimum.v14i2.9872

Abstract

Financial inclusion and financial system stability are important instruments in a country's economic development. Both financial systems are critical for developing countries to improve people's welfare, promote inclusive economic growth, and protect the financial system from shocks and crises. Financial inclusion is a measure of people's accessibility to financial products and services. Meanwhile, a stable financial system will accelerate the country's economy. Therefore, this research aims to determine the effect of financial inclusion and financial system stability on economic development in APEC member countries. The data used is in panel form using the Fixed Effect Model method. This paper takes 20 member countries of the Asia Pacific Economic Cooperation (APEC) as the research object, collect the data from 2008 to 2021. The research results show that financial inclusion has a significant effect on the economy on the penetration and usability y proxies, while the availability proxy is not significant. Furthermore, the Bank Z-score as an indicator of financial system stability also has a significant influence on the economy, followed by two additional variables, namely inflation and the Financial Development Index. The conclusion is that financial inclusion and financial system stability have a positive influence on a country's economic development. Implications of this study suggest that the bank has to expand the network in the financial sector that the community can reach, then make people believe and be confident to create accounts so that people can conduct financial transactions easily and efficiently that help to improve the economy.
The Role of Fiscal Decentralization on Inequality: Evidence from Papua Province Purna, Fitra Pasapawidya; Hardiningsih, Putri; Kurniawan, Mahrus Lutfi Adi; Sukarniati, Lestari; Flejterski, Stanislaw
JAMPE (Journal of Asset Management and Public Economy) Vol. 5 No. 1 (2026)
Publisher : Universitas Ahmad Dahlan, Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/jampe.v5i1.14475

Abstract

High income inequality is generally accompanied by unequal access to education, job training, and business opportunities, limitingemployment opportunities for the poor. One approach that can be applied to resolve this problem is by implementing a fiscal decentralization policy. Papua is one of the regions categorized as 3T (Underdeveloped, Frontier, and Outermost). This condition indicates serious challenges in development in Papua, especially in the aspects of basic infrastructure and fiscal independence. The main contribution of the study is to analyze the role of fiscal decentralization on development in Papua province. Fiscal decentralization plays an important role in promoting regional development, particularly in disadvantaged areas. The study used a panel data approach that combines time-series data (2019-2023) and cross-sectional data (29 regencies and cities) in Papua Province. The results of the study indicate that fiscal decentralization through the General Allocation Fund (DAU) and Special Allocation Fund (DAK) has no effect in reducing inequality rates in Papua Province. It isdue to geographical challenges and the unconditional transfer nature of DAU and DAK. In this case, DAU is mostly used for regional routine expenditures, while the DAK has a long-term effect on infrastructure development, which is the major obstacle in reducing inequality in Papua. This research implies that local governments need to improve the effectiveness of DAU and DAK utilization by prioritizing productive sectors.