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Economic Development and Environmental Degradation in ASEAN
M. Irsyad Ilham
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6024
The economic development in ASEAN still declines environmental quality, whereas the worst environmental quality became negative externality reduce output in many sectors of ASEAN’s economy. This paper aimed to analyze the two-way relationship among economic development and environmental degradation in ASEAN with the factors which influenced it. This article used a panel data from eight ASEAN countries with the period of 2004 – 2013. The analysis method used simultaneous equation model. The results showed the two-way relationship between economic development and environmental degradation in ASEAN existed. Moreover, Gross Domestic Product (GDP) per capita and energy consumption had a positive impact on environmental degradation. Meanwhile, carbon dioxide emission per capita and trade openness had a positive effect on economic development. Therefore, the economic development strategy for ASEAN countries should be directed to increase GDP per capita and reduce the energy consumption.DOI: 10.15408/sjie.v7i1.6024
Determinant of Human Development Index in ASEAN Countries
A. Arisman
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6756
Human development index is one indicator of development progress on aspects of human quality in a country. This study aims to determine the factors that affect the human development index in nations in ASEAN member countries. The analysis technique used is regression by using panel data regression with fixed effect model. The results of processing with fixed effect model show that population and per capita income growth rate affects the human development index in ASEAN member countries, while the variable rate of inflation and unemployment rate does not have an impact on the human development index. This study implies the importance of government to control the population and acceleration of economic growth.DOI: 10.15408/sjie.v7i1.6756
The Effect of Air Transportation on Regional Economic Development: Evidence from Indonesian Regencies
A. Aunurrofik
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6178
This study aims to examine the importance of air transportation on regional development in Indonesia as an archipelago and developing country. Using cross-section dataset in regencies level and multiple regression analysis, we found that the number of flight, air passenger, and air cargo give positive and significant impact on regional per capita income. The effect of air cargo is the strongest, which imply that airport will provide the more substantial impact on regional economic growth if the airport is intended to use for trade and business activities. The motivations of regency to have an airport are if Regency is an independent island, manufacturing industry with its high-skilled and mid-skilled workers, and tourism sector.DOI: 10.15408/sjie.v7i1.6178
Trade Openness Effect on Income Inequality: Empirical Evidence from Indonesia
Lestari Agusalim;
Fanny Suzuda Pohan
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.5527
This research analyzed the effect of international trade openness to income inequality in Indonesia using Vector Error Correction Model (VECM). The data used is the secondary data, which are the export-import value, gross domestic product (GDP), GDP per capita, open unemployment rate, and Gini index. The results of this study indicate that in the short term the trade openness has negative impact significantly on the income inequality. However, in the long-run, it does not show any significant effect in decreasing the income inequality rate. The impulse response function (IRF) concluded that income inequality gives a positive response, except on the third year. Based on the forecast error variance decomposition (FEDV), the trade openness does not provide any significant contribution in effecting the income inequality in Indonesia, but economic growth does. Nevertheless, in long-term, the economic growth makes the income inequality getting worse than in the short-term.DOI: 10.15408/sjie.v7i1.5527
Rules of Origin in ASEAN+1 Free Trade Agreements on Agriculture Commodity
Miranda Febriningtyas;
Rina Oktaviani;
Amzul Arifin
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6432
Rules of origin that indirectly serve as trade barriers, thus raising the potential for increased production costs. In agricultural commodities, the rules of origin are primarily determined by wholly-obtained, so the potential for more significant increases in the cost of agricultural products versus other commodities. The purpose of this paper is to compare the restrictiveness index rules of origin in ASEAN + 1 FTAs (ACFTA, AJCEP, and AKFTA) on agricultural commodities. This study uses the Regime Wide Harris Index by Kelleher to calculate the restrictiveness level rules of origin in ASEAN + 1 FTAs. Based on product-specific regulations, AJCEP has the most flexible rules of origin, followed by AKFTA and ACFTA as the most restrictive of origin in ASEAN + 1 FTAs. In the Regime Wide Harris Index, the results show that AJCEP has a flexible origin rule after AKFTA, and ACFTA is the most strict rules of origin in ASEAN + 1 FTAs. These results are influenced by the most substantial diagonal side cumulation in the ACFTA.DOI: 10.15408/sjie/v7i1.6432
The Asymmetric Effects of Oil Price Changes on the Economic Activities in Indonesia
Rina Juliet Artami;
Yonosuke Hara
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6052
This paper analyzes the asymmetric impact of oil price changes on the economic growth of and inflation in Indonesia by using the vector autoregression (VAR) model for the period from 1990Q1 to 2016Q4. The results show that the impact of oil price changes on the gross domestic product (GDP) is asymmetric, as a drop in oil prices decreases the GDP, whereas an increase in oil prices does not significantly affect GDP. It is crucial for Indonesia to reduce its dependency on oil, mainly as its primary source of revenue, and also consider utilizing more sources of renewable energy. At the same time, the effects of both the positive and negative changes in oil prices are found to be not statistically significant to inflation. The lack of impact of oil price changes on inflation can explain by the implementation of the fuel price subsidy in Indonesia.DOI: 10.15408/sjie.v7i1.6052
An Econometric Validation of Malthusian Theory: Evidence in Nigeria
Musa Abdullahi Sakanko;
Joseph David
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6461
Rising population is an asset, provided, the skills of the workforce are used to the maximum extent. If not appropriately channelized, it can be a liability for a nation. A skilled and hardworking population can emerge as a foundation for a country’s development. This study examines the validity of Malthusian Theory in Nigeria using time series data from 1960 to 2016, employs the ARDL bound test techniques. The result shows that in the long-run, population growth and food production move proportionately, while population growth poses a depleting effect on food production in the short-run, thus validating the incidence of Malthusian impact in Nigerian economy in the short-run. The researcher recommended the government should strategize plans, which will further intensify family planning and birth control measure, compulsory western education and revitalization of the agricultural sector.DOI: 10.150408/sjie.v7i1.6461
Wage Inequality and Return to Education in Indonesia: Quantile Regression Analysis
Restuning Dyah Widyanti
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6071
It is essential to the government to recognize the factors causing the increasing trend of income inequality in Indonesia since the Gini coefficient increased between 1996 and 2016. Moreover, wage inequality, which represented by high percentile and low percentile of income, also shows widening gap since 2003. This study focuses on the factors of wage inequality acceleration through the supply side approach that follows the Mincerian wage equation model. Specifically, this paper aims to investigate the association between the return to education and wage inequality in Indonesia. The quantile regression method is applied to compute the return on the investment at different points of the wage distribution. The main finding is that education contributes to an increasing wage inequality due to the significant variation in the rate of return to education in different quantile and as increasing wage dispersion within the same education.DOI: 10.15408/sjie.v7i1.6071
Micro-Loans and Household Economies: Evidence in Indonesia
S. Suratini
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.5954
Micro-loans intended to improve household economies are a fascinating subject for research because a comparative analysis of before and after taking micro-loans would result in a bias selection. Households have different prior conditions from one another, so the difference found during the study is not entirely due to receiving micro-loans. There is a risk of moral hazard risk due to asymmetric information. This research adopts the double difference (DD) fixed effects method to estimate the extent of micro-loans’ impact. Results indicate that micro-loans are significantly influencing the household economies. The impact size was relatively small that it was not apparent during regression. As an implication, micro-loans intended for productive purposes can help improve household economic conditions. Effective and sustainable monitoring and counsel can minimize the risk of moral hazard.DOI: 10.15408/sjie.v7i1.5954
Mergers and Acquisitions in Selected Frontier Markets of Asia
Farhan Ahmed;
Afzal Ahmed;
Sahabia Kanwal
Signifikan: Jurnal Ilmu Ekonomi Vol 7, No 1 (2018)
Publisher : Faculty of Economic and Business Syarif Hidayatullah State Islamic University of Jakarta
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DOI: 10.15408/sjie.v7i1.6074
This paper aims to provide contemporary and comparative information on mergers and acquisition activities. The findings have shown that Vietnam is very active in mergers and acquisitions activities, for instance in Vietnam 2946 transactions were announced, and 2114 completed in the last decade. Furthermore, Vietnam has a distinctive element of merging local firms; Out of top 20 deals, in 18 transactions target firms and acquirer both were from Vietnam. On the other hand, Sri Lanka has the highest percentage of completed M&A transactions in the last decade compared to Pakistan and Vietnam. In case of Pakistan, the findings suggest that Pakistan has had the highest number of value-based Mergers and Acquisitions deals in comparison to Sri Lanka and Vietnam. Interestingly, even though the number of transactions is higher compared to Sri Lanka and Vietnam; however, mergers and acquisition have had no significant impact on the profitability of Pakistan companies.DOI: 10.15408/sjie.v7i1.6074