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INDONESIA
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 178 Documents
THE EFFECT OF ASEAN-CHINA FREE TRADE AREA ON INDONESIA-CHINA TEXTILE PRODUCTS INTRA-INDUSTRY TRADE Sadat, Dea Nuriry
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.1

Abstract

Purpose This research investigates the relationship between the ASEAN-China Free Trade Area (ACFTA) and Indonesia-China Intra-industry Trade (IIT) and identifies other IIT determinants as controlled variables, such as the economic size gap, trade openness, trade imbalance, and COVID-19 conditions Design/methodology/approach This study uses the panel data method and applies the Grubel and Lloyd index to measure the IIT index Findings The main finding of this study demonstrates a different angle from most other studies, estimating that the agreement negatively and significantly affects the horizontal and lower sides of vertical IIT and the upper side of vertical IIT Research limitations/implications The primary challenge of this study is the availability of data on foreign direct investment (FDI), which is commonly used in previous literature Originality/value The contribution of this study to the extant empirical works is threefold. First, the focus is on textile products since most IIT studies are limited to manufactured goods. Second, the study decomposes IIT into HIIT, UVIIT, and LVIIT, while most studies only focus on HIIT and VIIT. Finally, this article provides another perspective on variable interest analysis and  attempts to shed deeper insight into the ACFTA-IIT relationship that other studies might not discuss
THE EFFECTS OF FINANCIAL INCLUSION, BANK-SPECIFIC FACTORS, AND MACROECONOMIC CONDITIONS ON NON-PERFORMING LOANS IN INDONESIA Muntashir, Muhammad Afif
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.2

Abstract

Purpose This study aims to determine the influence of financial inclusiveness, bank-specific factors, and macroeconomic conditions on the value of NPL in Indonesia. Design/methodology/approach The method used in this study is dynamic panel data, and the estimation parameter used is the Generalized Method of Moments (GMM) with data from 33 provinces in Indonesia for the period 2013-2023. Findings The results obtained indicate that there is no significant influence of inclusive finance on the NPL value. The LDR has an influence on the NPL but it is not significant. The amount of credit has a positive and significant effect on NPL. PDRB has a positive and significant effect on the value of NPL. Inflation has a negative effect, but it is not significant on NPL. In the long term, the amount of credit and PDRB have a significant effect on NPL in Indonesia Research limitations/implications Financial Services Authority and banks need to strengthen financial inclusion programs by expanding access to services to remote areas and increasing community financial literacy through education and partnerships with local institutions. Banks must also tighten credit risk analysis by implementing data-based technology, such as systems scoring which is effective for borrowers to screen high-risk borrowers Originality/value The novelty in this research is the use of financial inclusion variables Financial Inclusion Index in looking at the impact on non-performing loans in 33 provinces in Indonesia for the period 2013-2023.
THE EFFECTIVENESS OF INFLATION TARGETING POLICY IN MOROCCO: DOES MONETARY DOMINANCE MATTER? El Khattab, Younes
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.4

Abstract

Purpose This study examines how monetary-fiscal coordination affects the effectiveness of inflation targeting in Morocco, with particular attention to the role of monetary dominance. Drawing on the Sargent and Wallace framework, the study argues that inflation targeting is more effective when the central bank can focus on price stability without being constrained by fiscal financing pressures. Design/methodology/approach The study applies a Vector Error Correction Model (VECM) using Moroccan data from 1980 to 2021. The model is used to assess the relationship between monetary policy variables and inflation. Impulse response functions are also employed to examine how monetary authorities respond to fiscal policy shocks. Findings The results show that monetary policy plays an important role in influencing inflation in Morocco. In the long run, inflation is positively associated with both the interbank interest rate and money supply. However, in the short run, a restrictive monetary policy, reflected in a rise in interest rates, tends to reduce inflation. The findings also suggest that the interaction between monetary and fiscal policy matters for inflation control. In particular, the central bank appears to accommodate fiscal expansion more through adjustments in money supply than through interest rate changes. Research limitations/implications The empirical study focuses only on the Moroccan case, which represents a major limitation of the present research paper. As a suggestion for future research, it would be interesting to explore the nexus between coordination scheme and inflation targeting policy in a sample of countries with economic structure similar to that of Morocco. Originality/value The study proposes a framework for analyzing the effectiveness of inflation targeting policy that takes into account the potential effects linked to the coordination scheme choices.
FOOD SECURITY IN EAST JAVA DURING THE COVID-19 PANDEMIC: EVIDENCE FROM RICE PRODUCTION, RAINFALL, AND HUMAN DEVELOPMENT INDICATORS Muljaningsih, Sri; Ekawaty, Marlina
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.3

Abstract

Purpose This study aims to examine the determinants of food security in East Java Province during the COVID-19 pandemic, focusing on climate-related and socioeconomic factors. Design/methodology/approach This study employs a quantitative approach using multiple linear regression estimated through the Ordinary Least Squares (OLS) method. The dependent variable is the food security index in East Java Province. The independent variables include climate-related indicators, namely rainfall and rice production, and socioeconomic indicators associated with the pandemic context, including life expectancy, expected years of schooling, and real per capita expenditure. East Java was selected because it was Indonesia’s leading rice-producing province in 2020, a year marked by major socioeconomic disruption caused by COVID-19. Findings The findings show that rice production, life expectancy, and real per capita expenditure positively affect food security in East Java. These results indicate that agricultural productivity, health conditions, and household purchasing power play important roles in strengthening regional food security. Meanwhile, rainfall and expected years of schooling have no significant effect on the food security index, suggesting that these variables may not directly influence food security in the short-term context of 2020. Research limitations/implications This study is limited to East Java Province and focuses only on 2020. Future research may use panel data across several years or compare multiple provinces to capture broader food security dynamics. Originality/value This study provides context-specific evidence on how climate-related and socioeconomic factors shaped food security in East Java during the COVID-19 pandemic.
INVESTIGATING INPUT COST OPTIMIZATION VIS-A -VIS TOTAL FACTOR PRODUCTIVITY OF LEADING ORGANIZED MANUFACTURING INDUSTRIES OF INDIA Devi, Poonam; Pruthi, Somnath; Goyat, Deepti
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.5

Abstract

Purpose This study examines productivity and cost efficiency among leading industries in India’s organized manufacturing sector and identifies policy directions for improving input utilization and total factor productivity. Design/methodology/approach The study analyzes food products, textiles, wearing apparel, coke and refined petroleum products, pharmaceuticals, basic metals, and automobiles using Annual Survey of Industries data from 2009–10 to 2021–22. Output oriented Data Envelopment Analysis with variable returns to scale and the Malmquist Productivity Index are applied to measure technical efficiency, allocative efficiency, efficiency change, technological change, and total factor productivity. Findings The selected industries recorded an average total factor productivity increase of 23%. Textiles and basic metals performed strongly due to technological progress. Wearing apparel and automobiles showed moderate gains through efficiency improvement, while petroleum products and pharmaceuticals improved through both efficiency and technological change. Food processing and basic metals showed high allocative efficiency, whereas petroleum products performed well in both technical and allocative efficiency. Wearing apparel had high technical efficiency but low allocative efficiency, while automobiles showed unstable efficiency performance. Research limitations/implications The analysis is limited to selected industries and the 2009–10 to 2021–22 period. Originality/value This study provides industry specific evidence on the relationship between input cost optimization, efficiency, and productivity in Indian organized manufacturing.    
THE IMPACT OF FINANCIAL DEVELOPMENT AND HUMAN CAPITAL ON ENTREPRENEURSHIP IN MOROCCO: AN ANALYSIS USING THE ARDL METHOD AND BOUNDARY COINTEGRATION Amahzoune, Issam; Eddine, Salhi Salah; Elmousadik, Mouna
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.6

Abstract

Purpose This research aims to analyze the impact of financial development and human capital on entrepreneurship in Morocco over the period 1990–2022. Design/methodology/approach The study employs a time series analysis using the Autoregressive Distributed Lag (ARDL) approach to assess both short-term and long-term effects. Findings The results indicate that private credit granted by deposit banks positively influences new business creation in the short term. However, financial development, measured by private credit to deposit banks and long-term savings, does not significantly impact entrepreneurship in the long run. Conversely, human capital, measured through tertiary education enrollment and total labor force, plays a crucial role in fostering long-term entrepreneurial activity in Morocco. Research limitations/implications This study contributes to the literature on entrepreneurship by highlighting the differential impacts of financial development and human capital over time. The findings suggest that policymakers should prioritize human capital development alongside financial reforms to promote sustainable entrepreneurial growth. Originality/value Unlike previous studies that focus primarily on the role of financial development, this research provides a comprehensive analysis by integrating both financial and human capital dimensions in the Moroccan context. The use of the ARDL model also allows for a nuanced understanding of short-term and long-term effects.
The Effect of Sharia Financial Inclusion on Poverty in Aceh Risa, Hanna; Manzilati, Asfi; Trapsila, Aji Purba
Journal of Indonesian Applied Economics Vol. 13 No. 2 (2025): August - December 2025
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.2025.013.02.7

Abstract

Purpose This study aims to analyze the effect of sharia financial inclusion on poverty in Aceh, the only province in Indonesia that mandates all financial institutions to operate based on Islamic principles yet has the highest poverty rate in Sumatra. Design/methodology/approach The study employs microdata from the 2023 National Socioeconomic Survey (Susenas), using a sample of 13,398 households across Aceh Province. A binary logistic regression model is applied to examine the relationship between access to sharia financial products and services including bank accounts, sharia financing, and digital financial services on household poverty status. Findings The findings reveal that households utilizing sharia financial products and services have lower odds of experiencing poverty than those without such access. However, the usage rate remains relatively low, particularly among rural households and those engaged in the agricultural sector, which serves as the primary livelihood for the majority of households in Aceh. Research limitations/implications This study is limited to formal financial inclusion indicators available in the Susenas dataset. Consequently, other dimensions of Islamic financial inclusion, including ZISWAF, are not captured. Future studies should incorporate these dimensions to provide a more comprehensive analysis. Originality/value This study contributes to the limited literature on the relationship between sharia financial inclusion and poverty, particularly studies employing household-level microdata.
FROM BUDGET TO GROWTH: THE EFFECT OF EDUCATION SPENDING ON ECONOMIC GROWTH OF REGENCIES AND CITIES IN ACEH PROVINCE Hidayat, Syarif; Susilo; Fazaalloh, Al Muizzuddin
Journal of Indonesian Applied Economics Vol. 14 No. 1 (2026): February - June 2026
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.2026.014.01.1

Abstract

Purpose This research aims to analyze the effect of education spending toward economic growth across 23 regencies and cities in Aceh Province.. Design/methodology/approach This research uses exploratory research and quantitative methods. The population and sample are 23 regencies and cities in Aceh province consisting of 18 regencies and 5 cities. The type of data used is secondary data and the data source is from the Ministry of National Development Planning, Ministry of Finance and the Central Statistics Agency. The analysis model used is panel data regression by StataMP for districts/cities in Aceh province from 2010-2023. Findings The findings in this research are that education spending, per capita income, and GRDP significantly effect to economic growth, meanwhile Fixed Capital Formation and Population Growth show no effect to economic growth in regencies and cities across Aceh Province 2010-2023, despite accounting for only 20% of government expenditureor 2% of total GRDP. These results indicate that regional education spending plays a critical role in fostering economic growth in Aceh. Research limitations/implications This study is limited to regencies and cities within Aceh Province, which may restrict the generalizability of the findings to regions with different administrative and fiscal frameworks. Future research could integrate qualitative educational quality indicators alongside budgetary data. Originality/value This paper offers empirical insights into subnational fiscal policy effectiveness by assessing the longterm relationship between local education allocations and regional economic performance across Aceh Province.