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Economics and Finance in Indonesia
Published by Universitas Indonesia
ISSN : 0126155X     EISSN : 24429260     DOI : 10.47291
Core Subject : Economy,
EFI mainly covers original idea related to the Economics and Finance in Indonesia. Published articles can be either theoretical, empirical, or in between of those two polar variants.
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Articles 6 Documents
Search results for , issue "Volume 66, Number 1, June 2020" : 6 Documents clear
The Impact of Entrepreneurship on Economic Performance in Indonesia Yohanes B. Kadarusman
Economics and Finance in Indonesia Volume 66, Number 1, June 2020
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (184.46 KB) | DOI: 10.47291/efi.v66i1.684

Abstract

Entrepreneurship is claimed to have a positive and significant effect on economic growth in developed countries, but less so in developing countries. Using the growth model, this study examines the impact of entrepreneurship on economic performance in Indonesia as indicated by economic growth and income per-capita from 1985 to 2017. The estimation result confirms the non-significant effect of the growth of entrepreneurial ventures on the growth of GDP per-capita. However, the accumulation of the ventures has a positive and significant effect on the level of GDP per capita. The different typology of entrepreneurial ventures in Indonesia provides some insight to explain the finding, namely: scale does matter. Indonesia already has abundant micro-scale entrepreneurs, but it has only a limited amount of small-scale entrepreneurs, and even fewer medium or large-scale entrepreneurs. This finding contributes to a better understanding of the statistically non-significant impact of entrepreneurship on economic growth in developing countries. This study also suggests that entrepreneurship policy in Indonesia should focus more on facilitating micro-scale ventures to continuously develop toward small, medium, and ultimately large-scale enterprises rather than on creating start-ups.
The Impact of Human Capital on Shadow Economy in Indonesia Saraswati Saraswati; Neli Agustina
Economics and Finance in Indonesia Volume 66, Number 1, June 2020
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (203.308 KB) | DOI: 10.47291/efi.v66i1.629

Abstract

Shadow economy is a market for legal and illegal goods and services that escape recording and estimation of GDP. It can cause inaccurate estimation of GDP, declining tax revenue, and less precise economic policies. Improving the quality of human capital, both in education and health dimensions, can reduce shadow economy. The research aims to estimate shadow economy and analyze the influence of the quality of human capital on shadow economy in Indonesia. Applying time series multiple linear regression analysis, the findings show that the average shadow economy in Indonesia is 28.97 percent, changes in life expectancy negatively affect changes in shadow economy, while changes in the gross participation rate of tertiary education have a positive effect.
Corporate Income Tax Rate and Foreign Direct Investment: A Cross-Country Empirical Study Amalia Indah Sujarwati; Riatu Mariatul Qibthiyyah
Economics and Finance in Indonesia Volume 66, Number 1, June 2020
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (424.195 KB) | DOI: 10.47291/efi.v66i1.679

Abstract

This study aims to explore the impact of Corporate Income Tax Rate (CITR) on Foreign Direct Investment (FDI), specified based on income levels of countries. Using an unbalanced fixed-effect method of 112 countries over the period of 2003–2017, our finding shows that CITR has no significant impact on FDI. Corporate Income Tax (CIT) is levied on all firms, and as CIT is generally more complex than other types of taxes, its influences on FDI are in question. Excluding tax havens from the sample, our findings show that CITR has a weak significance only in the lower-middle-income and low-income countries.
Book Review: Central Bank Policy: Theory and Practice Denny Irawan
Economics and Finance in Indonesia Volume 66, Number 1, June 2020
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (7.865 KB) | DOI: 10.47291/efi.v66i1.691

Abstract

Enhancing Resilience to Turbulent Global Financial Markets: An Indonesian Experience Sri Mulyani Indrawati; Ndiame Diop; Mohamad Ikhsan; Febrio Kacaribu
Economics and Finance in Indonesia Volume 66, Number 1, June 2020
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (625.499 KB) | DOI: 10.47291/efi.v66i1.683

Abstract

In the empirical literature, large and abrupt declines in capital inflows, or sudden stops, typically hit asset markets and generate output losses in the receiving countries. The significant decrease in capital flows to emerging markets in 2018 is a unique opportunity to test this premise. Using Indonesian data, we found that the sharp decline in capital inflows for over two consecutive quarters in 2018 had an adverse impact on the currency, equities, and bond markets, but no discernible output loss was recorded. Real GDP growth remained resilient throughout 2018 and held broadly steady at around 5 percent in the first quarter of 2019. Furthermore, asset markets rebounded quickly, regaining most of the losses incurred by March 2019. We attribute this resilience to Indonesia’s strong macroeconomic fundamentals and responsive fiscal and monetary policies. We argue that to sustain this resilience in the years to come, complementary structural reforms to boost export-oriented FDI would be needed. The 2020 COVID-19 global pandemic has put the emerging economies to the test again, with a possibly more significant impact. We will revisit our analysis in the future in the aftermath of the pandemic. 
Gender Differences in Children’s Non-Leisure Activities: A Decomposition Analysis Dayang Haszelinna Abang Ali; Rosita Hamdan; Audrey Liwan; Josephine Yau Tan Hwang
Economics and Finance in Indonesia Volume 66, Number 1, June 2020
Publisher : Institute for Economic and Social Research

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (226.533 KB) | DOI: 10.47291/efi.v66i1.630

Abstract

The prevalence of son preference indicates that girls will have less leisure time compared to boys. This study aims to examine gender differences in weekly hours in schooling, housework, and working among children in Indonesia using Tobit Model and decomposition model of Bauer & Sinning (2005), to test whether son preference explains the differences. The dataset was drawn from the fourth wave of Indonesia Family Life Survey (IFLS) in 2007. The results show significant gender differences in housework and working for children aged 5–14 years and insignificant gender gap in schooling for both age groups. These results confirm the existence of gender differences among younger children compared to older children in their time allocation.

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