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Determinants of Agricultural Productivity: Analysis of the Welfare of Agrarian Countries Basri; Ramadhani, Muhammad Akbar; Prasasti, Riska; Atkiyan, Fahrul Hudatil; Baihaqi, M. A Sahal; Wau, Taosige
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.66239

Objective: This study aims to analyze the determinants of agricultural productivity and their impact on the welfare of agricultural countries. Agricultural productivity plays a pivotal role in the economic development of agricultural economies, as their growth largely depends on the performance of the agricultural sub-sector. The research adopts an empirical and quantitative approach to identify the key drivers contributing to productivity enhancement in agriculture. Design/Methods/Approach: The study employs secondary data obtained from reputable sources, including Our World in Data, the World Bank, the Food and Agriculture Organization (FAO), ILOSTAT, and the Economic Research Service. The sample consists of seven countries with the highest agricultural productivity globally, covering the period 2012–2021 based on data availability. The analysis examines the effects of land area, fertilizer consumption, agricultural labor, carbon emissions, and financial development on agricultural productivity. Findings: The results show that land area has a significant negative effect on agricultural productivity, while fertilizer consumption and agricultural labor have significant positive effects. Carbon emissions and financial development exert positive but statistically insignificant effects. These findings suggest that physical inputs and labor remain the main drivers of productivity growth in agricultural economies, whereas environmental and financial factors have yet to exhibit substantial influence. Originality/Value: This study contributes to the literature by comparatively identifying the determinants of agricultural productivity among the world’s most productive agricultural countries. By utilizing cross-country and time-series data, it enriches empirical understanding of how both input and non-input factors shape global agricultural performance, offering insights relevant to food security and sustainable economic development. Practical/Policy implication: The findings provide valuable guidance for policymakers, agricultural practitioners, and stakeholders to promote more efficient agricultural practices through the adoption of modern technologies, improved access to productive inputs such as fertilizers, and capacity-building for agricultural labor. These efforts are crucial to strengthening food security, enhancing farmers’ welfare, and supporting inclusive economic growth in agricultural economies.

The Impact of Financial Reforms on FDI Inflow and Export Growth Widjanarko, Yeremia Nicolaus
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.67648

Objective: This study explores the interlinkages between financial reforms, FDI inflows, and export growth in China through the lens of the Neoclassical framework. It aims to understand how post-2000 banking deregulation and capital market liberalization contributed to expanding foreign investment and export performance—an issue highly relevant to policy evaluation in emerging economies. The research adopts a qualitative–empirical orientation grounded in established economic theory. Design/Methods/Approach: The analysis draws on secondary time-series data from 1992–2022 obtained from the World Bank and the Asian Development Bank, complemented by a thematic review of China's policy documents. The study examines the evolution of FDI, exports, and industrial value-added to assess the sequencing of reforms and their links to external performance. the qualitative-descriptive approach is deemed suitable for connecting institutional change with resource allocation dynamics and trade outcomes. Findings: The findings reveal that financial reforms—particularly banking deregulation and capital market opening—were associated with a thirty-fold rise in FDI inflows and a fifty-five-fold surge in exports. Thematic analysis also highlights that FDI-driven technology transfer enhanced manufacturing productivity, with industrial value-added increasing from roughly USD 625 billion (2004) to USD 4.98 trillion (2022). These results support the Neoclassical argument that reforms improving resource allocation efficiency are fundamental to sustaining export growth. Originality/Value: This research contributes by integrating macro-level quantitative evidence with an institutional qualitative perspective, offering a sequencing framework that emphasizes strengthening financial transparency before targeting FDI toward high-value-added sectors. Such an approach provides a transferable analytical lens for other developing economies. Practical/Policy implication: For policymakers, the study underscores the importance of prioritizing transparency and financial governance as prerequisites for attracting quality FDI. It also suggests designing selective incentives to channel investment into high-value-added industries that promote technology diffusion and export competitiveness. Details regarding institutional readiness indicators, policy instruments, and long-term evaluation mechanisms.

Effectiveness of Reserve Requirement Policy in the Dual Banking System During COVID-19 Al Banna, Hasan; Munandar, Aris; Mutmainah, Lu'liyatul
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.70986

Objective: This study assesses the effectiveness of the reserve requirement (RRR) as part of a quantitative easing (QE) package within the dual banking system during the COVID-19 shock. The core question is whether changes in the RRR stimulate lending/financing, with a specific focus on differential responses between Islamic and conventional commercial banks. Design/Methods/Approach: Using macro-level industry data covering conventional and Islamic commercial banks from 2015 to March 2020, the analysis applies an Autoregressive Distributed Lag (ARDL) bounds testing framework to identify short- and long-run relationships between monetary policy and lending/financing. ARDL is used for this study because of its ability to capture adjustment dynamics that may differ across the two banking pillars under a QE regime. Findings: The results indicate that Islamic banks are more sensitive to the RRR policy than their conventional counterparts; lowering the RRR effectively promotes financing in Islamic commercial banks. Conventional bank lending appears less responsive to monetary transmission via interest rates, whereas Islamic bank financing is more reactive to policy changes. These patterns support the case for unconventional monetary tools to reinforce transmission, given the dominance of conventional banks in the financial system. Originality/Value: The study contributes by jointly identifying the impact of the RRR across both pillars of a dual banking system within a COVID-era QE context, offering ARDL-based evidence of asymmetric sensitivity between Islamic and conventional banks. Practical/Policy implication: The study contributes by jointly identifying the impact of the RRR across both pillars of a dual banking system within a COVID-era QE context, offering ARDL-based evidence of asymmetric sensitivity between Islamic and conventional banks.

Sectoral Vulnerabilities and Labor Transitions in Urban Areas During the COVID-19 Pandemic and Recovery Anggara, Rizki Tri; Alfahma, Elsya Gumayanti
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.71772

Objective: This study analyzes employment transitions in Indonesia's urban labor markets during the COVID-19 pandemic and recovery period (2020–2022). It empirically examines shifts between formal employment, informal employment, and unemployment, focusing on resilience and inclusivity in the labor market. Design/Methods/Approach: Using multinomial logistic regression on data from Indonesia's National Labor Force Survey (SAKERNAS) from 2020–2022, the study examines socio-demographic and sectoral factors associated with employment transitions. Findings: The results show significant socio-demographic and sectoral disparities in employment transitions. Workers in the manufacturing sector face the highest risks of transitioning to informal employment or unemployment, while the services sector demonstrates greater resilience. Digital access and higher education serve as protective factors, though skill mismatches may persist among tertiary-educated workers. Women and younger workers remain disproportionately vulnerable to unemployment. Originality/Value: This study fills a gap by centering urban labor markets in Indonesia during the COVID-19 shock and early recovery (2020–2022)—a context underexplored in prior work. It jointly models transition among formal employment, informal employment, and unemployment. The analysis integrates digital access alongside socio-demographic and sectoral affiliations, revealing urban-specific mechanisms—heightened job competition and dependence on volatile services/manufacturing—that existing literature often overlooks. Practical/Policy implication: The findings highlight the need for targeted policy interventions to strengthen labor market resilience and inclusivity during economic disruptions. Recommendations include expanding digital infrastructure and literacy, aligning vocational training with market demands, and implementing sector-specific measures such as enhancing labor protections in manufacturing and extending social protections for informal workers in the primary sector.

Poverty Analysis in Indonesia’s Ten Poorest Provinces: Socio-economic and Fiscal Determinants Mailyn, Frisilia Dameria; Kartika, Metasari
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.73258

Objective: As a developing country, Indonesia is still economically vulnerable. This study analyzes the influence of health complaints, school participation rate, per capita expenditure, General Allocation Fund, Special Allocation Fund, and open unemployment rate on poverty. Grounded in the Human Capital, Keynesian, Fiscal Federalism, and Malthusian Theory, the empirical study explains the socioeconomic and fiscal dimensions of poverty to evaluate the policy effectiveness in Indonesia. Design/Methods/Approach: This study employs panel data (2014-2023) from Statistics Indonesia and the Ministry of Finance, covering the ten poorest provinces. Multiple linear regression is the method employed by EViews 12 under a Random Effects model, because provincial differences are assumed to be random and uncorrelated with the independent variables. Findings: The results reveal that health complaints have a negative but insignificant effect on poverty. School participation rate and per capita expenditure significantly reduce poverty depth, reflecting the roles of human capital accumulation and household purchasing power in improving welfare. The General Allocation Fund exhibits a positive but insignificant effect, whereas the Special Allocation Fund significantly increases poverty, indicating misallocation and inefficiencies in fiscal implementation. The open unemployment rate has a positive and significant effect, as loss of income pushes households further below the poverty line. Originality/Value: This study offers novel value by focusing specifically on the ten provinces with the highest poverty depth, which is rarely examined in prior research. The study provides evidence that the determinants of poverty are not universal but vary across regional contexts. The findings extend existing literature by highlighting the role of fiscal governance quality, particularly the divergent effects of transfer funds. Practical/Policy implication: These findings provide strategies for poverty alleviation in the poorest regions, such as expanding equitable access to health and education services, strengthening employment programs, and improving the transparency and targeting of fiscal transfers.

The Gen Z Response to Islamic Mobile Banking Adoption: A Technology Acceptance Model with Cybersecurity Perspective Mufidah, Diana; Nasrulloh, Nasrulloh
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.73564

Objective: This study analyzes Generation Z’s behavioral response toward Islamic mobile banking adoption by extending the Technology Acceptance Model (TAM) with a cybersecurity perspective. The main research question addresses how perceived ease of use, perceived usefulness, and cybersecurity influence the adoption of Islamic digital financial technologies. This study is empirical and examines the interaction between user behavior and ethical dimensions in sharia-based digital financial services. Design/Methods/Approach: A quantitative approach was employed, utilizing primary data gathered from 100 respondents through an online survey. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM–PLS) to examine the relationships among perceived ease of use (PEOU), perceived usefulness (PU), cybersecurity, and community response (CR). This method effectively identifies both direct and indirect effects among behavioral and trust-related variables within the TAM framework. Findings: The results show that PEOU and cybersecurity have a positive and significant effect on CR, while PU is insignificant. Both PEOU and PU positively affect cybersecurity, confirming the mediating roles of cybersecurity in shaping user trust and behavioral responses. This finding indicates that for Generation Z, usability and digital trust are more decisive than functional benefits alone. Originality/Value: This study contributes to digital finance literature by integrating cybersecurity into the TAM framework as a behavioral trust construct in Islamic financial systems. It provides new empirical evidence regarding young consumers’ responses to ethical and technological dimensions of Islamic digital banking. Practical/Policy implication: The findings emphasize the need for Islamic financial institutions to design mobile banking systems that are both user-friendly and secure. Enhancing transparency, interface simplicity, and cybersecurity literacy will strengthen user trust. Policymakers should develop cybersecurity standards aligned with Sharia principles to ensure ethical and inclusive digital transformation.

The Impact of Natural Disasters on Poverty in Rural Area Muhammad, Fahmi; Qibthiyyah, Riatu Mariatul
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.74908

Objective: This study aims to analyze the impact of natural disasters on household consumption and poverty in rural area, focusing on three major types of disasters: volcanic eruptions, earthquakes, and tsunamis. It addresses the vulnerability of rural communities caused by limited access to insurance, emergency savings, and infrastructure, highlighting the importance of understanding the disaster–poverty nexus to design more effective protection and recovery strategies. Design/Methods/Approach: The analysis employs panel data from the Indonesian Family Life Survey (IFLS) for 2007 and 2014, validated using the Emergency Events Database (EM-DAT). Fixed-effect and logit models are used to estimate the effects of disasters on per capita household consumption and poverty likelihood. This empirical approach allows for identifying both the direct and indirect economic impacts of disasters on rural household welfare. Findings: The results indicate that natural disasters reduce rural households’ per capita consumption by 2.29%. However, this reduction does not always translate directly into poverty; instead, it reflects underlying economic stress that may evolve into long-term poverty if unaddressed. The findings also highlight that savings play a crucial role in mitigating the negative impact of disasters on consumption, underscoring the importance of access to basic financial instruments in enhancing household resilience. Originality/Value: This study contributes by integrating household-level microdata and disaster event data to explore the relationship between natural shocks and rural poverty dynamics. The combined use of fixed-effect and logit models offers a comprehensive understanding of heterogeneity across households and affected regions. Practical/Policy implication: The findings emphasize the need to strengthen simple financial instruments such as savings and community-based microinsurance as part of adaptive and social protection strategies. Policies promoting financial inclusion and localized risk protection systems can enhance household resilience to disasters and reduce the likelihood of long-term poverty traps.

The Role of Economic Digitalization on Portfolio Investment Firmansyah, Muhammad; Boedirochminarni, Arfida; Yuli, Sri Budi Cantika; Flejterski, Stanislaw
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.75537

Objective: Portfolio investment plays an important role in supporting economic growth, especially with the advancement of technology that facilitates access to information and financial transactions. This study analyzes the impact of internet users, fintech, cashless transactions, and e-commerce on portfolio investment in Indonesia. Design/Methods/Approach: This type of research is quantitative research using secondary data sourced from the Central Bureau of Statistics, Financial Services Authority (OJK), Bank Indonesia, and the Indonesian Economic and Financial Statistics. The research objects used in this study include 34 provinces in Indonesia. The data analysis method in this study uses Vector Autoregression (VAR). This analysis method consists of several tests, including the stationary test, optimum lag test, Granger causality test, Impulse Response Function (IRF), and Forecast Error Variance Decomposition (FEVD). Findings: The study results show that the four variables affect portfolio investment with varying significance levels. Internet users increase access to financial markets and investment opportunities. Fintech provides efficient digital financial services, cashless transactions offer convenience in financial management, and e-commerce creates profitable investment opportunities. Originality/Value: Unlike prior research that examined these factors in isolation, our approach provides a comprehensive understanding by integrating four variables of digitalization into a single framework for analyzing how digital transformation shapes investment behavior. Using a Vector Autoregression (VAR) method with provincial-level data from Indonesia, the study offers novel empirical evidence on the dynamic interplay between digitalization and financial markets in an emerging economy. Practical/Policy implication: The findings highlight the importance of expanding digital infrastructure, enhancing financial literacy, and strengthening regulatory frameworks to foster inclusive and secure digital investment ecosystems. Policymakers and monetary authorities can apply these insights to design policies that promote fintech innovation, ensure transaction security, and improve investor protection.

Tourism-Led Economic Growth in Coastal Areas: A Qualitative Study of Marine Economies Santoso, Rudi
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.76620

Objective: This research aims to explore the strategic role of the marine tourism sector in encouraging economic growth in coastal areas, with case studies on several coastal areas. Design/Methods/Approach: Departing from the tourism-led growth paradigm, this study uses a descriptive qualitative approach through in-depth interviews, participatory observations, and documentation studies of key actors in the marine economic ecosystem, including business actors, local governments, and local communities Findings: The findings of the study show that marine tourism has become a catalyst for economic diversification, the creation of new jobs, and the increase of economic participation of local communities, especially in the informal sector, such as culinary, lodging, and tourism services. The study also identified good practices from community-based tourism models that successfully integrate economic and conservation aspects through active community participation. Originality/Value: This research contributes to the development of inclusive marine tourism theory and enriches the literature on economic growth based on local potential. The results of the research are expected to be a policy reference for inclusive, competitive, and sustainable coastal economic development. Practical/Policy implication: Strategic recommendations are provided to stakeholders to strengthen governance, community empowerment, investment partnerships, and cross-sectoral policy integration.

Tourism and Sustainable Development: Its Impact on Energy, Economy, and CO₂ Emissions Aplugi, Belantika; Kusumawardani, Deni
Jurnal Ilmu Ekonomi Terapan Vol. 10 No. 2 (2025)
Publisher : Department of Economics, Faculty of Economics and Business, Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jiet.v10i2.77484

Objective: This study investigates the effects of tourism on energy consumption, economic growth, and CO₂ emissions using annual data from 2002 to 2022. The main objective is to understand both the short- and long-term relationships between tourism and key economic–environmental dimensions, providing an empirical foundation for sustainable development strategies. Design/Methods/Approach: Secondary data were obtained from the World Development Indicators (WDI). The Autoregressive Distributed Lag (ARDL) model was employed to examine both short- and long-run dynamics among tourism, energy use, economic growth, and CO₂ emissions. The ARDL framework was chosen for its ability to capture temporal adjustment processes and interdependencies across the variables of interest. Findings:The results indicate that, in the short term, tourism significantly increases energy consumption and stimulates economic growth, while its effect on CO₂ emissions is statistically insignificant. In the long run, higher tourist expenditures are associated with lower energy use, reflecting improved energy efficiency within the tourism sector. Conversely, tourism receipts negatively influence economic growth over time, suggesting the presence of economic leakage. Moreover, no significant long-term linkage is found between tourism and CO₂ emissions. Originality/Value: This study contributes by quantifying the multidimensional impacts of tourism on both economic and environmental outcomes within a developing-country context. By employing the ARDL model, it advances the literature on tourism sustainability, offering empirically grounded insights relevant to policy formulation for green growth. Practical/Policy implication: The findings emphasize the need for sustainable tourism policies to mitigate environmental impacts while maintaining economic benefits. Policymakers should prioritize improving energy efficiency within the tourism sector, investing in renewable energy initiatives, and promoting eco-friendly tourism practices. These actions can help balance growth and sustainability, supporting long-term green development goals.

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Abstract

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Contact Name
-

Contact Email
-

Phone
-

Journal Mail Official
-

Editorial Address
-

Location
Kota surabaya,

Jawa timur

INDONESIA