Journal of Applied Economics in Developing Countries
FOCUS This journal focused on economics, business, and management in developing countries studies and presents developments through the publication of articles and research reports. SCOPE The Journal of Applied Economics in Developing Countries (JAEDC) specializes on Economics, Business, and Management in developing countries, and is intended to communicate original research and current issues on the subject. This journal warmly welcomes contributions from scholars of related disciplines. The focus and scope of the Journal of Applied Economics in Developing Countries include: 1. Development Economics 2. Fiscal policy 3. Monetary economics 4. Public policy 5. Regional economics development 6. Institutional economics 7. Poverty and inequality 8. International economics 9. Financial economics 10. Digital economics 11. Circular and Environmental Economics 12. Health Economics 13. Industrial Economics 14. Labor Economics
Articles
110 Documents
THE EFFECT OF ECONOMIC OPENNESS, DEMOCRACY, AND INSTITUTIONAL QUALITY ON INDONESIA EXPORTS TO ASEAN PLUS THREE
Wikantioso Wikantioso
Journal of Applied Economics in Developing Countries Vol 5, No 1 (2020): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v5i1.53441
The ASEAN Charter Agreement and the cooperation of the East Asia Free Trade Area ASEAN+3 provide momentum for ASEAN countries to increase economic openness, strengthen the application of democratic principles, and improve institutional quality to enhance trade cooperation. This study aims to explore the role of economic openness, democracy, and institutional quality in increasing Indonesia's exports to ASEAN countries plus three during the 1996-2017 period using the augmented gravity model. The results showed that the openness of ASEAN+3 to trade (trade% of GDP), democracy, and institutional quality of Indonesia and ASEAN+3 as Indonesia's export destination had positive effects in increasing Indonesia's exports to ASEAN+3. However foreign direct investment in Indonesia and ASEAN+3 does not affect the export.Keywords: Indonesia Trade Gravity Model, Economic Openness, Democracy, Governance Institution, Indonesia's export, ASEAN+3
ANALYSIS OF THE EFFECT OF FOREIGN DIRECT INVESTMENT, GOVERNMENT SPENDING, AND EXPORTS ON ECONOMIC GROWTH ASEAN-5 COUNTRIES, 2005-2017
Ali Zainal Abidin
Journal of Applied Economics in Developing Countries Vol 6, No 2 (2021): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v6i2.79410
Foreign investment, exports, and government spending are some of the variables closely related to a country's development. This study aims to look at the relationship between foreign direct investment (FDI), export values, and government spending on economic growth in ASEAN-5 countries. These countries include Indonesia, Malaysia, the Philippines, Vietnam, and Singapore. The research method uses a quantitative approach with panel data analysis. The type of data is secondary data from the World Bank database from 2005 to 2017. The data is then tested through the Breusch and Pagan tests and the Hausman test. Finally, the data were analyzed using panel data regression analysis. The study result shows that FDI and exports have a positive but not significant effect on economic growth in ASEAN-5 countries. Meanwhile, the government expenditure variable has a positive and significant influence on the economic growth of ASEAN-5 countries. These results can also be used as a basis for policymakers on the volume of economic growth, especially in encouraging the quality of human resources to boost export value in ASEAN-5 countries.Keywords: ASEAN-5; Economic growth; Exports; FDI; Government spending
ANALYSIS OF THE INFLUENCE OF FINANCIAL DEVELOPMENT AND FINANCIAL INCLUSION ON ECONOMIC GROWTH
Luluis Zaqiyah;
Hery Sulistyo Jati Nugroho Sriwiyanto
Journal of Applied Economics in Developing Countries Vol 7, No 2 (2022): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v7i2.79433
The objective of this research is to analyze the influence of financial development, represented by credit/GRDP and MSME/GRDP credit, and financial inclusion, represented by the number of bank branches per 100,000 adult population and third-party funds per GRDP, on economic growth in 33 Indonesian provinces during the 2013-2017 period. The data in this study used 33 provinces in Indonesia. The method of analysis is the panel data method. The data panel is a combination of time series data and cross-sections. The cross-sectional data is processed by observing the same object in a different way and at different times. This study found that financial development had a significant positive effect based on credit / GRDP variables. meanwhile, the SMEs / GDP credit proceeds were found to be insignificant in economic growth. Financial inclusion has a negative and significant effect based on a variable number of offices. Bank branches per 100,000 adult population and DPK / GRDP at current prices. At the same time, the control variables collected were significant and positive capital, while the labor force was not significant.
THE INFLUENCE OF CAR, ROA, FDR ON MURABAHAH FINANCING WITH NPF AS MODERATING VARIABLE
Alwi Zaenudin;
Nila Saadati
Journal of Applied Economics in Developing Countries Vol 8, No 2 (2023): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v8i2.80472
This study aims to determine the effect of Capital Adequacy Ratio (CAR), Third Party Funding (TPF), Return on Assets (ROA), and Financing Deposit Ratio (FDR) on murabahah financing with Non Performing Financing (NPF) as a moderating variable. This study uses quantitative types using purposive sampling techniques by setting several criteria so that 50 observations and 10 Full-Fledged Islamic Banks are the research sample. This research uses secondary data from panel data at Full-Fledged Islamic Banks for 2018-2022. The results of this study show that: 1) The Capital Adequacy Ratio (CAR) has no effect and negatively impacts murabahah financing; 2) Third Party Funding (TPF) has a positive and significant effect on murabahah financing; 3) Return On Assets (ROA) has a positive and significant effect on murabahah financing; 4) Financing To Deposit Ratio (FDR) has no effect and negatively impacts murabahah financing; 5) Non-performing financing (NPF) cannot moderate the influence of the Capital Adequacy Ratio on murabahah financing; 6) Non-performing financing (NPF) can moderate the influence of Third party funding on murabahah financing; 7) Non-performing financing (NPF) can moderate the influence of Return On Assets on murabahah financing; and 8) Non-performing financing cannot moderate the influence of the Financing To Deposit Ratio on murabahah financing.
INDONESIA’S OPPORTUNITY TO DEVELOP MARITIME POTENCY: UTILIZING CHAIRMANSHIP IN IORA 2015
Septyanto Galan Prakoso;
Aditya Very Cleverina
Journal of Applied Economics in Developing Countries Vol 2, No 1 (2016): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v2i1.90000
Indonesia is one of country located near Indian Ocean, it means that Indonesia is a maritime nation. Hence, Indonesia is a very big potential maritme to develope its economy. The aim of this paper is to determine how Indonesia used its opportunity to develop its maritime potency by utilizing IORA chairmanship during 2015-2017. The emphasis of this paper was placed on the examination of the perspectives and experiences of Indonesia as the largest archipelagic country and biggest economic growth in IORA. Indonesia could play a role, helping to strengthen the IORA and turn it into a respected and matured regional forum. By actuating this condition, Indonesia has a chance to get two advantages: in the domestic level, a significant progress in maritime sector of economic development can be achieved. Meanwhile, at the international level, this condition can be taken as a shortcut to propose the idea of Indonesia’s vision to international community in order to boost Indonesia's bargaining position in the international maritime issues.Keywords: IORA, maritime
FOOD SECURITY OF TENANT FARMER HOUSEHOLD IN DRAWNDOWN AREA OF WONOGIRI MULTIFUNCTION DAM
Emi Widiyanti;
Marcelinus Molo;
Bekti Wahyu Utami
Journal of Applied Economics in Developing Countries Vol 1, No 1 (2014): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v1i1.89995
This research aimed to study the food security status of tenant farmer household in drawndown area surrounding Wonogiri multifunction dam. This study was a survey research with explanatory research taken place in five subdistricts existing surrounding Wonogiri multifunction dam with the greatest number of tenant farmer and the broadest subsiding land, including Nguntoronadi, Baturetno, Giriwoyo, Wuryantoro, and Eromoko. The data of research was collected from the result of interview with 75 tenant farmer households in five subdistricts analyzed using a descriptive analysis method. The result of research showed that (1) the food expense of farmer household was higher than non-food expense; (2) the mean energy consumption for every member of household was not even and still below Recommended Dietary Allowances (RDA) of 2000 kcal per day; (3) the mean of protein consumption per capita had surpassed the Recommended Dietary Allowances (RDA) of 50 grams per day; and (4) most farmer households were in poor food security condition.Keywords: Food security, farmer households, drawndown area.
CORRUPTION AND ECONOMIC GROWTH IN NIGERIA: DOES DATA SUPPORT “GREASE THE WHEELS” OR “SAND THE WHEELS”?
Felix Odunayo Ajayi;
Aduralere Opeyemi Oyelade;
Gideon Olugbenga Olanrewaju
Journal of Applied Economics in Developing Countries Vol 9, No 2 (2024): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v9i2.92595
The study investigated the relationship between corruption and economic growth in Nigeria using data from 1996 to 2020. The research employed the Fully Modified Ordinary Least Squares (FMOLS) method and Granger causality tests. The FMOLS results indicated that both gross fixed capital formation and urbanization significantly and positively influence economic growth in Nigeria, whereas the corruption index has a negative and significant effect, aligning with the "sand the wheels" theory. The Granger causality analysis showed a unidirectional relationship, where gross fixed capital formation Granger-causes GDP growth rate, and GDP growth rate Granger-causes both the corruption index and the relative corruption ranking in Nigeria. Based on these results, the study recommends that policymakers prioritise transparency and good governance by implementing e-governance initiatives to reduce bureaucratic hurdles and opportunities for corruption. Furthermore, there should be consistent monitoring and thorough evaluation of the impact of anti-corruption strategies on economic growth and development to ensure their effectiveness.
ANALYSIS OF FACTORS INFLUENCING THE PROFITABILITY OF ISLAMIC BANKING
Dhita A'ulia Syamsi;
Anton Bawono
Journal of Applied Economics in Developing Countries Vol 9, No 1 (2024): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v9i1.81527
This study uses a quantitative approach to analyze the influence of operational costs and income, non-performing financing (NPF), and the Islamicity Performance Index on the profitability of Islamic banking, with intellectual capital as a moderating variable. The population includes Sharia Commercial Banks located in Indonesia and registered with the Financial Services Authority from 2015 to 2022. The sample was determined using purposive sampling, resulting in 56 data points. Hypotheses were tested using Moderated Regression Analysis (MRA) with Eviews 12 software.The results indicate that operational costs and income (BOPO) significantly influence the Return on Assets (ROA), while NPF does not. The profit-sharing ratio (PSR) and the Islamic Income vs Non-Islamic Income Ratio (IsIR) significantly influence ROA. Intellectual capital (IC) has a direct influence on ROA but does not moderate the relationship between BOPO and ROA, nor between NPF and ROA. However, IC can moderate the relationship between the profit-sharing ratio and ROA. It does not moderate the relationship between IsIR and ROA. These findings suggest that operational efficiency, profit-sharing mechanisms, and the proportion of Islamic income are crucial for enhancing profitability in Sharia Commercial Banks, with intellectual capital playing a significant but selective moderating role.
IMPACT OF COMMERCIAL BANK’S CREDIT ON MANUFACTURING SECTOR OUTPUT IN NIGERIA
Ibrahim Musa;
El-Yaqub Ahmad. B.;
Sule Magaji
Journal of Applied Economics in Developing Countries Vol 9, No 1 (2024): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v9i1.82632
This study examines the impact of commercial banks' credit (CBC) on manufacturing sector output (MSO) in Nigeria from 1992 to 2021 using Ex-Post Factor Research Design Approach. The study’s findings indicate that commercial banks credit (CBC) has a beneficial and substantial impact on manufacturing sector output (MSO). The long-term value of CBC has a positive and substantial impact on MSO. A 1% rise in Credit to Small and Medium Businesses (CSM) led to a 0.1866% increase in MSO. Conversely, a unit increase in deposit interest rate (DINR) resulted in a 0.0081% fall in MSO. In the long run, a unit increase in Government Capital Expenditure (GOV) caused a 0.1482% increase in MSO. Therefore, the study recommends that using its monetary policies, federal government can make an efficient policy that allows the manufacturing sector and small and medium enterprises to access bank credit at low interest rates.
ECONOMIC VALUE OF CRITICAL LAND IN SEMPAYANG VILLAGE, NORTH KALIMANTAN
Sulistya Rini Pratiwi;
Yohanna Thresia Nainggola;
Meylin Rahmawati
Journal of Applied Economics in Developing Countries Vol 9, No 2 (2024): Journal of Applied Economics in Developing Countries
Publisher : MESP–FEB UNS
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DOI: 10.20961/jaedc.v9i2.90199
This research aims to identify the locations of vulnerable critical land areas and assess the economic value of mitigating agricultural land in critical conditions within Sempayang Village, North Kalimantan, Indonesia. The study employs Geographic Information Systems (GIS) to analyze land distribution and the Contingent Valuation Method (CVM) to estimate the economic value. A purposive sampling method was used to select 51 respondents from local farmers, with a focus on their willingness to pay for land rehabilitation. The results of this research are the largest critical land area was found in Malinau District, covering 54,108 hectares. Farmers showed a willingness to pay between Rp. 26,000 and Rp. 30,000 for land rehabilitation efforts, with a total economic value of Rp. 45,360,000 annually for non-critical land. The study underscores the importance of community and government collaboration for effective land restoration programs.