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Journal of Indonesian Applied Economics
Published by Universitas Brawijaya
ISSN : 19077947     EISSN : 25415395     DOI : -
Core Subject : Economy,
Journal of Indonesian Applied Economics (JIAE) is an online journal sponsored by the Faculty of Economics and Bussiness, Universitas Brawijaya. The purpose of this journal is to enhance the study of economic issues on all aspects of applied economics and finance.
Arjuna Subject : -
Articles 169 Documents
Modelling the Okun’s Law in the midst of Structural Breaks: Evidence from Nigeria Iyoboyi, Martins; Sabitu , Abubakar; Felix Okereke, Samuel
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.01.6

Abstract

Purpose This study aims to examine the relationship between economic growth and unemployment in Nigeria, specifically investigating the validity of Okun's law. Design/methodology/approach The study employs both linear and non-linear specifications using quarterly data from 1991Q1 to 2019Q1. Cointegration techniques that account for structural breaks are applied. Findings Unemployment and economic growth are found to be cointegrated. Both linear and non-linear specifications show a positive relationship between growth and unemployment, but the impact of unemployment on growth is not statistically significant. The study concludes that the growth experienced in Nigeria during the study period did not lead to reduced unemployment, thus invalidating Okun's law. Research limitations/implications The study's findings are based on data up to 2019Q1 and may not reflect more recent trends.  The analysis relies on the accuracy and reliability of the data sources used. Originality/value This study contributes to the understanding of the relationship between economic growth and unemployment in Nigeria, highlighting the need for policies targeting sectors with high employment potential.
Foreign Aid and Economic Growth: An Econometric Study of Afghanistan Fazlly, Sayed Kifayatullah
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.01.4

Abstract

Purpose This study aims to investigate the impact of foreign aid on economic growth in Afghanistan. Design/methodology/approach The study employs various econometric techniques, including time series analysis. Data for the study are sourced from the country economy and world development indicators of the World Bank, covering the period from 1980 to 2021. The analysis includes Augmented Dicky Fuller and Phillips Perron unit root tests, the ARDL model, the Breusch-Godfrey Serial Correlation LM Test, and the ARDL bounds test. Findings The economic growth series is found to be level stationary, while the net official development assistance series is first difference stationary. Net official development assistance exhibits a significant positive short-run relationship with economic growth. No serial correlation is observed between net official development assistance and economic growth. Net official development assistance demonstrates a significant positive long-run relationship with economic growth. Research limitations/implications The study is based on data up to 2021, which may not capture recent developments or changes in the relationship between foreign aid and economic growth. The analysis relies on the accuracy and reliability of the data provided by the World Bank and other sources. Originality/value This study contributes empirical evidence on foreign aid's impact on economic growth in Afghanistan, using a range of econometric techniques. The findings highlight the importance of donor-friendly policies to increase development assistance to Afghanistan.
Livelihood Vulnerability Resilience Capacity of the Rural Economy in Nigeria’s Bauchi State Sadiq, Sanusi Mohammed; Singh, Invinder Paul; Ahmad, Muhammad Makarfi; Umar, Mahmood Bala
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.01.10

Abstract

Purpose This research explores the livelihood vulnerability resilience capacity of the rural economy in Nigeria's Bauchi state, aiming to inform sustainable livelihood policies in the region. Design/methodology/approach Data from 322 households in Bauchi state was collected using a structured questionnaire and interview schedule, employing a multi-stage random sampling technique. Descriptive and inferential statistics were used to analyze the data. Findings Households with more livelihood assets tend to use adaptive strategies like diversification and intensification, reducing vulnerability. However, food insecurity can mask this adaptive capacity, impacting household resilience and rural economy sustainability. Research limitations/implications The findings are specific to Bauchi state and may not be generalizable to other regions or countries. Originality/value This study sheds light on the resilience capacity of households in Bauchi state, emphasizing the importance of enhancing factors that buffer vulnerability and resilience capacity. The findings suggest that resilience capacity significantly influences food security and sustainable livelihoods in the region, highlighting the need for targeted policy interventions.
From Budget to Prosperity: Analyzing the Village Fund's Contribution to Rural Advancement in Indonesia Rizaldi, Muhammad; Suman, Agus; Ekawaty, Marlina
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.02.2

Abstract

Purpose This research aims to assess the influence of Village Funds on rural development, as proxied by the Village Development Index, across 33 provinces in Indonesia from 2018 to 2022. Design/methodology/approach This research uses the Panel Data Regression Model to analyze the data. Findings This finding implies a positive impact of the Village Fund in driving rural development. In addition, other endogenous variables, such as the Human Development Index (HDI) and population size, also show a significant influence on rural development outcomes. These results highlight the multifaceted nature of rural development, not only financial resources but also human development and demographic factors play crucial roles. Research limitations/implications This study uses the Village Development Index to describe the condition of village development, Village Fund as an interest variable, Human development index, rural poor population, and total provincial population as control variables. Originality/value While there are studies that use Village Development Index (VDI) as a dependent variable to measure the influence of the Village Funds, they still have limitations in terms of their research scope, typically confined to a single district or city. This study will complement previous research by examining villages in all provinces of Indonesia.
Refugee Integration Policies in Europe: Examining the Impact of Racial, Religious, and Cultural Differences Söylemez, Adnan; Şahin, Ali
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.02.6

Abstract

Purpose: This research aims to critically examine the complexities and multidimensionality inherent in migration, emphasizing its significance beyond mere spatial relocation. The study addresses the persistent nature of migration as a global concern, particularly focusing on the lack of a unified and comprehensive migration policy. Design/Methodology/Approach: The methodology employed in this research provides a basis for evaluating the overall validity and reliability. It offers insights into the data collection and analysis processes, as well as the rationale behind conducting the study. The author utilizes a critical approach to assess the framing of migration and refugee issues, acknowledging the absence of standardization in this regard. Findings: The analysis reveals variations in the acceptance and integration of migrants and refugees into host societies, particularly in Europe. The study highlights the emergence of political identities associated with factors such as color, language, religion, culture, ethnic identity, and race, contributing to xenophobia, othering, and Islamophobia. Additionally, the research delves into the double standards exhibited by European states toward Muslim and Christian immigrants and refugees, exploring key axes influencing these disparities. Research Limitations/Implications: The study recognizes the limitations in its scope, particularly regarding the specific focus on European policies. The implications extend to the broader discourse on migration, emphasizing the need for a more comprehensive and standardized approach in framing and addressing migration and refugee issues globally. Originality/Value: This research contributes to the existing literature by shedding light on the double standards rooted in racial and religious discrimination within European policies on migrants and refugees. It addresses a crucial research gap in understanding the political identities associated with migration, especially in the context of events like the Ukraine crisis.
Impact of Stock Market Indicators on Nigeria’s Economic Growth: 1991-2021 MUSA, IBRAHIM; A. B., El-Yaqub; MAGAJI, SULE
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.02.7

Abstract

Purpose The study examined the impact of stock market indicators on Nigeria’s economy between 1991 and 2021. Design/Methodology/Approach It employed Johansen co-integration to check the long-run relationship among the secondary data: Real Gross Domestic Product (RGDP) as the dependent variable; Market Capitalization (MCAP), All Share Index (ASI), and Gross Capital Formation (GCF) represented the independent variables which were source from CBN Statistical Bulletin and World Bank Development Indicators. Pre-estimation test showed that all the variables were integrated of order one, I (1) through the Augmented Dickey-Fuller unit root test. Findings The co-integration test revealed the existence of a long-run relationship among the variables. An Error Correction Model (ECM) technique was adopted to analyze the short-run dynamics in the dataset. The ECM results showed that market capitalization and all share indexes had a positive impact on the RGDP in the short run. However, the gross capital formation was found to be negative but significant at a 5 per cent significance level. Moreover, the error correction term showed that equilibrium, in the long run, is reconciled at a speed of approximately 51 per cent aftershock. Further, the diagnostic test showed that the residuals are homoscedastic and efficiently distributed. Results are therefore appropriate for policy analysis.   Research Limitations/Implications This research offers valuable insights but the findings have some constraints of limitations particularly with regard to available relevant materials and papers. Originality/Value This study is clearly original for it has filled some gaps by examining the impact of stock market indicators on Nigeria’s economy between 1991 and 2021. Giving limited existing research, this study contributes to knowledge by exploring impacts stock markets indicators have on Nigeria’s economic growth within the period under study. Recommendations The study recommended that there is a need for the Federal Government of Nigeria through the Nigeria Stock Exchange (NSE) to encourage private sector investment in the capital market. This can be done through educating and enlightening the public using experts who are competent in stock market dealings.
The Moderating Influence of External Environment on the Link Between Strategy Implementation Determinants and Public Health Facilities Service Delivery Leonard, Momos
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.01.8

Abstract

Purpose This study aims to investigate the moderating influence of the external environment on the relationship between strategy implementation determinants and service delivery in public health facilities in the Western Region of Kenya. Design/methodology/approach The study adopts a positivist approach and is anchored on the McKinsey 7-S Model Framework. It utilizes descriptive survey and explanatory research designs, targeting 966 respondents including top management leaders, medical personnel, and patients. Data is collected through structured questionnaires and interview schedules, and analyzed using SPSS. Findings The external environment moderates the relationship between strategy implementation determinants and public health facilities service delivery in the Western Region of Kenya. Human resource capacity and organizational culture are key factors moderated by the external environment in affecting public health facilities service delivery. Research limitations/implications The study's findings are specific to the Western Region of Kenya and may not be generalizable to other regions or countries. The study relies on self-reported data, which may be subject to response bias. Originality/value This study contributes to the understanding of how the external environment influences the relationship between strategy implementation determinants and service delivery in public health facilities. The findings suggest the importance of creating an enabling environment for effective strategy implementation in the public sector to improve service delivery.
The impact of domestic debt on inflation rate: Empirical evidence from Nigeria samuel, olufemi; Olugbamiye, Olorunleke Dominic
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.02.4

Abstract

Using annual time series data this study examines the relationship between Nigeria's domestic debt and the country's inflation rate between 1981 and 2022 using ARDL estimation technique. The study employed Augment Dickey Fuller unit root test to determine the stationarity of each variable and the result revealed that inflation and GDP growth rates were stationary at integration level I(0), whereas all other variables were integrated at I(1). The bound test revealed that there is a long run relationship between the variables which implies that all the variable cointegrate. The study revealed that that domestic debt and interest rate had negative impact on inflation rate while external debt, economic growth and money supply had positive impact on inflation rate. Since the study found that domestic debt helps to reduce inflation, therefore government should often consider borrow from within the country as it reduces inflation as against external borrowings that increases inflation
The Impact of Food Insecurity on Domestic Child Violence Dwi Hadya Jayani; Dwini Handayani
Journal of Indonesian Applied Economics Vol. 12 No. 2 (2024): August 2024 (IN PRESS)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.02.5

Abstract

Purpose This research aims to examine the impact of food insecurity on the probability of child violence within households. Design/methodology/approach The study uses logistic regression analysis to establish the association between the dependent variable (child violence) and the independent variable (food insecurity) while controlling for several variables. The variables related to food insecurity are found in the National Socioeconomic Survey (Susenas) KOR 2020, while the variables associated with child violence are present in the Social Resilience Module of the September 2020 Susenas. The unit of analysis in this research is children aged 0-17 years, with the scope of the study focusing on households included in both Susenas KOR 2020 and the Social Assistance Module 2020 conducted by the Central Statistics Agency (Badan Pusat Statistik). After data merging, the sample used in this analysis comprises 40,231 households considered representative.   Findings Descriptive analysis indicates that food insecurity still frequently occurs in households with the highest expenditures, although the percentage is not as high as in the lowest quintile group (the poor). Based on logistic regression analysis, there is a significant association between food insecurity and child violence within households. However, there is a different pattern in the "Severe" food insecurity level, where the probability of child violence is lower compared to other levels of food insecurity.   Research limitations/implications Child violence in this study is based on the admission of adult household members (aged 17 and above) who perpetrate violence against children (aged under 17) and does not specify the type of violence that occurs.   Originality/value The research gap in this study is the occurrence of child violence based on expenditure groups and food insecurity. Additionally, the unit of analysis in this study is children aged 0-17 years within the scope of household research included in the 2020 National Socio-Economic Survey (Susenas KOR) and the 2020 Social Assistance Module (Modul Hansos) conducted by the Central Statistics Agency (Badan Pusat Statistik).
Analyzing the Effects of Interest Rates, Inflation, and Exchange Rates on Stock Market Performance: A Comparative Study Of Indonesia and Japan Majok, Alith Jacob; Kaluge, David; Satria, Dias
Journal of Indonesian Applied Economics Vol. 12 No. 1 (2024): February 2024
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jiae.2024.012.01.2

Abstract

Purpose This study examines the influence of macroeconomic variables on stock market performance in Indonesia and Japan from 2013 to 2023. Drawing upon the Efficient Market Hypothesis (EMH), we investigate how key factors such as interest rates, inflation, exchange rates, and economic events impact stock returns. Design/methodology/approach We examine the connections between these characteristics and stock market performance in two different markets using regression analysis and EMH as the theoretical framework. In order to find patterns and trends, we analyze data spanning a decade. Findings Interest rates strongly affect Indonesian stocks due to their influence on investor sentiment. In Japan, trade agreements have a significant positive impact on stock returns. However, stock returns in both countries are weakly connected to inflation, currency rates, and other economic and political factors. The global economy remains a key external factor for both markets. Research limitations/implications This study has some restrictions, such as data limitations and EMH framework-related presumptions. In the future, research may focus on longer-term effects, behavioral aspects, and sector-specific analysis to further our comprehension of these intricate interactions. Originality/value This research advances our understanding of market behavior under various economic conditions by analyzing the interaction of macroeconomic variables and stock market dynamics in two distinct economies.