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Economic Journal of Emerging Markets
ISSN : 20863128     EISSN : 2502180x     DOI : -
Core Subject : Economy,
The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal is fully open access for scholarly readers.
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Articles 11 Documents
Search results for , issue "Volume 9 Issue 1, 2017" : 11 Documents clear
The relationship between macroeconomic variables and small-and-medium-enterprises in Indonesia Malik Cahyadin
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art5

Abstract

This study analyses the interaction between macroeconomic variables and indicators of small and medium enterprises (SME) in Indonesia. The analysed data include GDP, inflation, unemployment, poverty number, the number of SME business units, total SME employment, and SME investment. It uses Granger Causality Test and VECM. It suggests that macroeconomic variables and SME indicators have one causal direction. In addition, there are short term and long term relationships between macroeconomic variables and indicators of SME. The response of macroeconomic variables for indicators of SME takes 4.5-5 years to stabilize. Meanwhile, the contribution of SME to GDP indicator is likely to increase from quarter 1 to 64.
Government fiscal policy impact analysis in infrastructure sector and education sector to improve public welfare Mustafa Edwin Nasution; Imam Wahyudi
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art6

Abstract

This study aimed to conduct a study and analysis of government fiscal policies related to the components of revenue (taxes) and some components of spending (education/human resources and infrastructure sectors). Issues regarding the effectiveness of the allocation of government budgets, particularly for human resources and infrastructure sectors, is an important issue that is very interesting to discuss. Especially if associated with their impact on improving people's welfare. With a limited income, the government must make a choice to prioritize the education/human resources sector or infrastructure sector.
Social capital, parental expectation, and postsecondary education enrolment Wahyu Wisnu Utomo
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art2

Abstract

In this research paper, I attempt to investigate the correlation between parental expectation and postsecondary education enrolment in Indonesia. Not only parental expectation, I also aim to shed a light in higher educational attainment topic by examine the correlation between social capital and the enrolment decision because the studies that connecting parental expectation and social capital to postsecondary education enrolment were not many, especially in Indonesia. Using fourth and fifth wave of IFLS (Indonesia Family Life Survey) in 2007/2008 and 2014/2015, I find that parental expectation has a positive connection with the postsecondary education enrolment. In addition to that, two community participation variables from the dataset that I use to measure social capital also shows a significant relationship. Furthermore, the logistic regression also shows that age, marriage status, gender, ethnicity, religion, student’s academic capacity, parent’s education, wealth, and location are significant determinants. I also find interesting results that in Indonesia, girls are more likely to participate in postsecondary education compared to boys, and early marriage is the biggest obstacle to the higher education enrollment.
Infrastructure and inequality: An empirical evidence from Indonesia Amien Makmuri
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art4

Abstract

This research is an attempt to study the empirical relationship between infrastructure and income inequality in Indonesia. It uses regression analysis with panel data set covering 32 provinces in the period of 2007–2013 in order to estimate whether the infrastructure has positive or negative effects on income inequality. We use a conventional income inequality measure, Gini index. The model is estimated by simple pooled OLS, fixed-effect and random-effect models. To overcome the endogeneity problem, infrastructures quantity and quality indicators enter the regressions with one-year lag. We find that road and telecommunication quantities tend to boost income inequality, while electricity quantity, airport quantity, and airport quality have a favorable impact on the distribution of income and help to alleviate income inequality. Whereas, when these different categories of infrastructure are formed as synthetic indices, the relation between these indices and income inequality lends support to the idea that infrastructure increases income inequality.
Does the sustainable fiscal policy foster its credibility? Haryo Kuncoro
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art9

Abstract

This paper examines the credibility and sustainability of fiscal policy in the case of Indonesia. The standard model of fiscal sustainability is modified to accommodate the credibility aspect. The empirical estimates are done by employing several aspects of the time series econometric literature including unit roots, degree of integration, co-integration, and stability tests. Based on the deficit forecast error reaction function, we estimate the quarterly data over the period 2001-2013 relying on the autoregressive distributed lag model. The results present that the deficit rule policy is not credible while central government's debt is unsustainable. The coexistence of non-credibility and unsustainability of fiscal policy in Indonesia is also closely related to the world oil prices and trade openness fluctuations. Under these strong external circumstances instability, the fiscal authority credibility plays an important role in conducting fiscal rule policy which operates primarily through a signalling effect.
Comparative economic value added on Southeast Asian banking industry Lintang Dewanti; Rofikoh Rokhim
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art8

Abstract

This study analyses the bank's performance comparison across countries in some ASEAN members which are listed in the stock exchange, as well as to analyse the influence of Economic Value Added (EVA) and some financial ratios on the company stock return. Analysis suggests some results. In Indonesia, Thailand and the Philippines, the movement of EVA follows the movement of Gross Domestic Product (GDP). This study also finds that Earning per Share (EPS), only in Singapore, and Return on Equity (ROE) and Return on Assets (ROA), only in the Philippines, have an influence on stock return. Only in the Philippines where EVA together with ROA has an effect on stock return.
Provincial corruption and local development bank performance Murharsito Murharsito; Fitri Ella Fauziah; Emanuel Kristijadi; Rr. Iramani
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art7

Abstract

This paper investigates the effect of provincial corruption on the performance of local development bank, specifically to the profitability and credit quality. We use the data of 26 local development banks in 2012 and 2013. For the provincial corruption measurement we use “Public Institution Openness Index”. Results of this study are first, corruption significantly has a negative effect on the profitability of local development bank. Second, corruption doesn’t affect the credit quality of local development bank. These results are expected to enrich the within country corruption effect to the economic studies, particularly to the local development bank which is infrequently investigated.
Rethinking the exchange rate disconnect puzzle theory in ASEAN-6 Adhitya Wardhono; Badara Shofi Dana; M. Abd. Nasir
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art10

Abstract

The theory of the exchange rate disconnect puzzle provides evidence of the instability of exchange rate relationship with macroeconomic fundamentals. This study will analyse the enactment of the theory of the exchange rate disconnect puzzle with the macroeconomic fundamental phenomenon in affecting the exchange rate movements in the ASEAN-6. The method of analysis Generalized Method of Moment (GMM) with panel data is used to provide an explanation for the existence of the theory of the exchange rate puzzle disconnect. Results the analysis showed the relationship between macroeconomic fundamentals through proxies of the monetary approach affect to exchange rate movements in the ASEAN-6.
The impact of commercial bank’s characteristics on micro, small, and medium enterprises in India Motiniva Nayak
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art1

Abstract

The paper discusses the changes in the credit distribution to the micro, small and medium enterprises (MSME) sector. It analyses the relationship between commercial banking characteristics and its credit to the sector. It builds an econometric analysis on the relationship between share of credit to MSE and banking characteristics, namely the size, performance of bank, non-performing asset (NPA) out of MSME lending, and capital to risk weighted ratio (CRAR). It finds a negative relationship between the size of the bank and proportion of credit flows to the sector. It also finds that better performing banks are not interested in lending to the sector.
Predicting unemployment rates in Indonesia Umi Mahmudah
Economic Journal of Emerging Markets Volume 9 Issue 1, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss1.art3

Abstract

The main purpose of this study is to predict the unemployment rate in Indonesia by using time series data from 1986 to 2015 using autoregressive integrated moving average (ARIMA). A differencing process is required due to the actual time series of the unemployment rates in Indonesia is non-stationary. The results show that the best model for forecasting the unemployment rate in Indonesia by using the ARIMA (0,2,1) model. The forecasting results reveal that the unemployment rate in Indonesia tends to decrease continuously. The average of the residuals is close to zero which informs a good result of the forecasting analysis.

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