Asia-Pacific Management and Business Application
Vol 5, No 2 (2016)

Bankıng Funds and the Industrıal Sector in Indonesıa

Henny Medyawati (Faculty of Economics, Gunadarma University, Jakarta, Indonesia)
Muhamad Yunanto (Faculty of Economics, Gunadarma University, Jakarta, Indonesia)



Article Info

Publish Date
03 Apr 2017

Abstract

Banking, the blood of any economy, recorded strong growth over the last 5 years in Indonesia, particularly in terms of the volumes of funds collected. The purpose of this research is to examine the indicators of banking, banking technology indicators namely Bank Indonesia-Real Time Gross Settlement (BI-RTGS), industrial sector and services in the Indonesian economy as measured by the nation’s Gross Domestic Product (GDP). This study uses time series data covering 2000 (fourth quarter) to 2014. Testing of time series data using the unit root test and co-integration test, indicated that variables were not stationary at the current level and that the Vector Error Correction Model (VECM) can be applied provided that there is co-integration. The results showed that the GDP responded positivelyto shocksarising from third party funds, assets and BI-RTGS. Negative response was indicated by the loan variables, industry and services. An analysis of variance decomposition indicated that the third party fundshad the largest percentage contribution compared with those attributable to five other variables.

Copyrights © 2016






Journal Info

Abbrev

apmba

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Social Sciences

Description

Asia-Pacific Management and Business Application journal (APMBA) is a scholarly journal, publishing internationally leading research across all areas of management. APMBA continuously seeking articles that challenge the affect of globalization through business world through critically informed ...