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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 173 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.