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Determinants of Governance Performance: The Effects of Intellectual, Social, and Natural Capital in Middle-Income Countries Thahira, Zia; Dawood, Taufiq C.; Zikra, Naswatun; Darmawati, Cut
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.v10i2.78311

Objective: This study investigates the effect of intellectual, social, and natural capital on governance performance in middle income countries, addressing how non-financial resources shape institutional quality. The research is empirical and contributes to development economics by linking capital endowments with governance outcomes, which are central to sustainable development and institutional resilience. Methods: The study uses panel data from the Global Sustainable Competitiveness Index (GSCI) for 20 middle income countries during 2020–2024. Governance scores serve as the dependent variable, while intellectual, social, and natural capital are the main explanatory variables, analyzed through a fixed effects regression with robust standard errors. Findings: The results indicate that natural capital has a statistically significant and positive impact on governance performance, with a coefficient value of approximately 0.51, significant at the five percent level. This suggests that countries with stronger capacities to manage environmental resources tend to develop more accountable and resilient institutions. In contrast, intellectual and social capital do not show significant effects within the observed period, which may imply that their influence on governance is more indirect, requires longer time horizons to materialize, or depends on the presence of supportive institutional frameworks. Originality/Value: The novelty of this study lies in testing the reverse relationship between non-financial capital and governance and incorporating interaction models that reveal how these resources jointly shape institutional outcomes. Unlike most prior studies that focus on how governance drives capital formation, this research centers on middle-income countries and employs recent data from 2020–2024 to offer fresh empirical evidence on institutional determinants of governance. Practical/Policy implication: The findings suggest that governance reforms should integrate natural capital management within Sustainable Development Goal frameworks while enhancing institutional capacity in education and social cohesion to enable intellectual and social capital to more effectively strengthen governance in the long term.

Identifying LPG Usage Inequality and Its Determinants in Eastern Indonesia Fajritia, Rahajeng; Kartiasih, Fitri; A’mal , Ikhlasul
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.v10i2.79636

Objective: This study aims to measure the extent of LPG usage inequality and to examine the factors influencing it across 13 provinces in Eastern Indonesia (KTI) over the period 2015–2023. Specifically, this study seeks to address two research questions: (1) To what extent does LPG usage inequality vary across provinces in Eastern Indonesia? and (2) What factors contribute to the occurrence of this inequality?Methods: This study uses panel data sourced from the National Socioeconomic Survey (Susenas) and official publications of BPS-Statistics Indonesia. LPG usage inequality is measured using the Gini Coefficient and the Lorenz Curve. The empirical model is analyzed using the Fixed Effect Model (FEM), which is then corrected with Feasible Generalized Least Squares–Seemingly Unrelated Regression (FGLS-SUR) to address heteroskedasticity and cross-sectional unit correlation issues.Findings: The research findings reveal that five provinces (East Nusa Tenggara, Maluku, North Maluku, Papua, and West Papua) experience very high disparities in LPG usage, primarily influenced by limited access and high LPG prices. Empirically, it was found that per capita income and education significantly reduce inequality, while an increase in LPG prices significantly increases inequality.Originality/Value: This research makes a novel contribution by focusing on LPG usage inequality across the provinces of Eastern Indonesia. The use of panel data analyzed through the FGLS-SUR method enables a more robust and precise identification of the determinants of inequality.Practical/Policy implication: The government should enhance the equity of energy distribution infrastructure, ensure price stability, and promote energy literacy as part of a just clean energy transition. Furthermore, improving educational attainment and strengthening micro, small, and medium enterprises (MSMEs) are essential to increasing public awareness, raising income levels, and stimulating regional economic development.

The Challenges of Islamic Fintech Growth in Indonesia: A Bibliometric Analysis M. Nur Ikhwan; Awaludin Taufiq; Aditya Darmawan; Inna Khoridatul Bahiya; Ikin
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.65124

Objective: The aim of this study is to explore the dynamics and difficulties associated with Islamic fintech by integrating the emerging themes from the existing literature. Design/Methods/Approach: Using bibliometric analysis and VOSviewer, the research examines 686 publications from the CrossRef database (2018-2024) through keyword co-occurrence networks, overlay visualization, and density analysis. Findings: The intellectual structure reveals a dense collaboration network centered on core actors, with B. Koderi and Basyar Syaripudin as the most active nodes, while Gunarto A emerges as the most productive author. The co-word structure indicates that Islamic fintech scholarship is organized around a problem-solving logic with "challenge – innovation – development" framing most discussions, consistently linked to regulation, legal protection, Sharia principles, and technology adoption. The overlay visualization demonstrates a maturing trajectory where 2022 focused on conceptual framing, late 2022–2023 shifted to implementation bottlenecks, and 2023–2024 consolidated behavioral themes such as adoption, intention, and MSMEs. However, regulatory effectiveness and Sharia governance remain insufficiently developed as objects of systematic evaluation and are not yet firmly integrated with innovation-adoption debates. Originality/Value: The originality lies in its integrative bibliometric mapping approach specifically focused on a specific country context, combining keyword co-occurrence networks, overlay visualization, and density analysis to map the entire intellectual structure. It uniquely identifies the "challenge – innovation – development" framing as the dominant logic and highlights the core–periphery structure of author collaborations, offering novel understanding of knowledge production in this emerging field. Practical/Policy implication: The government and the Financial Services Authority (OJK) need to focus on strengthening regulations, governance, and technology-based innovation in the Sharia sector, including regulatory sandboxes, digital literacy, and research and technology collaboration to support a sustainable Sharia fintech ecosystem.

Bridging the Gap or Perpetuating Poverty? The Complex Effects of Non-Cash Food Assistance on Food Security Husnul Mubarok; Tri Haryanto
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.71206

Objective: This study aims to examine the impact of the Non-Cash Food Assistance Program on food consumption and food insecurity. The primary objective is to assess whether BPNT improves nutritional intake while also influencing households’ perceived food security, thereby contributing to the evaluation of social protection policies. Design/Methods/Approach: The study adopts a quantitative approach using Propensity Score Matching (PSM) to compare the beneficiaries and non-beneficiaries. The analysis focuses on key outcome variables, including calorie, protein, fat, and carbohydrate intake, as well as the Food Insecurity Experience Scale (FIES) score as a subjective measure of food insecurity. The PSM method is employed to reduce selection bias and generate more robust estimates of program impact. Findings: The results indicate that participation in the Non-Cash Food Assistance program significantly improves all measured nutritional intake indicators, including calories, protein, fat, and carbohydrates. However, FIES scores decline among beneficiaries, suggesting a lower perceived level of food security. This divergence between objective outcomes (nutritional intake) and subjective indicators (perceived food insecurity) points to potential psychological effects of assistance programs, particularly when they are not accompanied by empowerment-oriented interventions. Originality/Value: This study contributes to the literature by highlighting the gap between objective and subjective impacts of food assistance programs. By jointly analyzing nutritional indicators and FIES within a PSM framework, it offers a more nuanced understanding of social assistance effectiveness and program sustainability in developing-country contexts. Practical/Policy implication: The findings underscore the importance of policy design that goes beyond meeting short-term nutritional needs. Policymakers should integrate food assistance with empowerment measures that enhance long-term resilience, including improved economic independence, a stronger sense of security, and a fair and humane graduation system. Such an approach can help ensure that BPNT not only alleviates immediate food shortages but also supports sustainable food security outcomes.

Financial Inclusion and Carbon Emissions in ASEAN-6: Empirical Evidence from Panel Data M. Aulia Rachman; Shanty Oktvilia; Dwi Rahmayani
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.71264

Objective: This empirical research examines the impact of financial industry performance, through inclusive financial indicators, on carbon emissions in ASEAN-6 countries. It will examine the impact of financial inclusion on environmental damage with GDP per capita, Trade Openness, Inflation, and Interest Rate as control variables. Design/Methods/Approach: The financial inclusion index variable is calculated based on accessibility, availability, and usability. The analysis tool used is the Panel Regression with random effect models approach in ASEAN-6 countries from 2013 to 2019. The dependent variable is carbon emissions, and the independent variables are the financial inclusion index (including the three aspects of accessibility, availability, and usability), GDP per capita, trade openness, inflation, and interest rates. The research variable data is taken from the World Development Index (WDI) sourced from the World Bank. Findings: The estimation results show that financial inclusion, especially in the distribution of loans (usability), has a positive impact on environmental degradation. The higher the use of domestic credit, the higher the amount of carbon emissions. GDP and Trade Openness variables also have a similar effect; however, interest rates have a negative impact. Originality/Value: This research contributes to understanding the impact of financial inclusion on carbon emissions in ASEAN countries. Unlike previous research, this study attempts to analyze the three aspects of the financial inclusion index (accessibility, availability, and usability) that influence vulnerability to carbon emissions. This allows for a deeper understanding of these components to be justified in the context of more specific literature. Practical/Policy implication: Carbon emission mitigation efforts in ASEAN need to implement an integrated strategy through a regional integration framework that includes the Green Taxonomy, Sustainability-Based Credits, lower green loan interest rates, green tariff incentives, and the adoption of Climate Risk Reporting (TCFD) to direct capital allocation toward low-carbon development.

The Role of the Manufacturing Industry in the Economy: Basic Sectors and Input-Output Analysis Anggara Pratama Putra; Rumayya; Isdiana Fitriyani
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.72592

Objective: This study aims to evaluate the role of the manufacturing sector in the economy of East Java by applying a base sector approach and input–output analysis. The main objective is to assess the extent to which the manufacturing sector acts as a key driver of regional economic growth and generates intersectoral linkages and multiplier effects on output, income, and employment. Design/Methods/Approach: The study adopts a quantitative approach by combining location quotient (LQ) analysis and input–output analysis. The LQ method is used to identify whether manufacturing functions as a base sector in East Java’s economy, while input–output analysis examines the sector’s forward and backward linkages with other sectors. The analytical results are further interpreted in relation to Industry 4.0 and sustainability policy frameworks in East Java. Findings: The findings indicate that the manufacturing sector has an LQ value of 1.40 (>1), confirming its role as a base sector with a substantial contribution to East Java’s gross regional domestic product (GRDP). Input–output analysis reveals strong forward and backward linkages between manufacturing and other sectors. An increase in manufacturing output is shown to stimulate the growth of related sectors and generate significant multiplier effects in terms of output expansion, income generation, and employment creation. Originality/Value: This study contributes to the economic literature by integrating base-sector analysis with input–output analysis while explicitly linking multiplier effects to Industry 4.0 and sustainability policies. This combined approach offers new insights into sectoral interdependencies and illustrates how technological transformation and sustainability initiatives can enhance the competitiveness of the manufacturing sector at the regional level. Practical/Policy implication: The results highlight the importance of policies that prioritize infrastructure development, improved logistics connectivity, and human capital development through vocational education and training aligned with Industry 4.0 technologies. In addition, incentives for green industries, export promotion, and strengthened international cooperation are essential to expand markets and enhance competitiveness. These policy recommendations can be applied to reinforce the manufacturing sector as a strategic pillar for sustainable economic growth in East Java.

Chinese & Japanese Infrastructure Diplomacy in Africa: A Comparative Study and Two-Sided Analysis Yeremia Nicolaus Widjanarko; Miguel Angel Esquivias
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.76191

Objective: This research investigates the infrastructure diplomacy strategies of China and Japan in Africa, addressing a critical gap in understanding how these different approaches influence regional stability and economic development. The study contextualizes the pressing infrastructure deficits in Africa, which significantly hinder its economic growth and social progress. Design/Methods/Approach: The primary objective of this qualitative research is to explore the strategic objectives that lie behind Chinese and Japanese infrastructure investments in Africa, examining their implications for both regional and African economies along with their geopolitical dynamics. Employing a qualitative case study approach, this research utilizes document analysis, including project reports and secondary sources, to gather nuanced contextual information. Comparative analysis is conducted to identify common themes and divergent patterns in the infrastructure strategies of both economic giants, with triangulation enhancing the validity of the findings. Findings: This research reveals that China's infrastructure investments, characterized by significant loans tied to resource extraction, often lead to dependency and potential instability in recipient economies. In contrast, Japan's approach emphasizes quality infrastructure and local capacity building, fostering sustainable development and long-term partnerships. These two differing strategies reflect the evolving power dynamics within the region, highlighting implications for both international and regional relations. Originality/Value: This research contributes to the broader discourse on international relations and development studies, offering insights into how infrastructure diplomacy shapes the geopolitical landscape in Africa. Future research directions are suggested to further explore the long-term impacts of these strategies on local communities and regional cooperation. Practical/Policy implication: The findings underscore the importance of a balanced, multipolar international system in which infrastructure options contribute to regional stability and economic resilience.

Analysis of Socioeconomic Determinants of Stunting Among Children Under Five Veronika Yuniati Efendi; Lilik Sugiharti
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.78571

Objective: This study addresses the persistently high stunting rates despite ongoing government interventions. It analyzes how key socio-economic factors like poverty, protein intake, women’s education, improved sanitation, and complete basic immunization affect stunting among children under five. The main question is how these determinants explain differences in stunting across districts/municipalities. More broadly, the study assesses the effectiveness of regional development policies in strengthening human capital for long-term economic growth. Design/Methods/Approach: The study employs panel data from 22 districts/municipalities for the period 2018–2023, obtained from official publications of the Provincial Health Office and Statistics Indonesia (BPS). The analysis uses a fixed effect model (FEM) to control for unobserved heterogeneity across regions, accompanied by clustered standard errors as a robustness check to ensure the stability and reliability of the estimates. Findings: Results show that poverty significantly increases stunting, while women’s education and improved sanitation significantly reduce it. Protein intake and immunization coverage are not statistically significant. Robustness tests confirm consistent coefficient patterns, indicating reliable findings. Economically, the results highlight the importance of socio-economic conditions and basic infrastructure in shaping child nutrition. Originality/Value: This study enriches the literature on economic development and child health by highlighting the unique context of NTT a region with high poverty levels and stunting rates exceeding the national average and by emphasizing the importance of women’s education and adequate sanitation. Practical/Policy implication: The findings call for integrated strategies focused on poverty reduction, women’s education, nutrition improvement, expanded sanitation, and stronger immunization programs. These insights offer a foundation for more targeted and sustainable policies to enhance human capital in NTT.

Foreign Direct Investment as a Catalyst for Growth in ECOWAS: Revisiting the Role of Financial Development Mohamed Lamin Conteh; Linda Rosalina; Unggul Heriqbaldi
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.78647

Objective: This study examines the impact of foreign direct investment (FDI) and financial development on economic growth across ten ECOWAS nations from 2000 to 2023. It aims to answer two main questions: whether FDI plays a significant role in boosting economic growth in ECOWAS countries, and whether the level of financial development influences this relationship. Approach: Using dynamic panel econometric techniques, the vector error correction model (VECM) and fully modified ordinary least squares (FMOLS), the study investigates the short- and long-run effects of FDI and financial development on growth. Control variables include gross capital formation, population growth, and trade openness, with data from the World Bank and IMF databases. Findings: FDI has a positive and significant impact on economic growth in both the short and long term, whereas financial development is statistically insignificant. This implies that the region’s underdeveloped financial systems limit the advantages of FDI. FMOLS results verify the stability of FDI’s long-term effects and highlight the vital role of trade openness. Originality/Value: This study contributes to the literature by employing dynamic panel techniques (VECM and FMOLS) on updated data from 2000 to 2023 for the ECOWAS region. It reevaluates the relationship between FDI and growth in the context of regional integration and post-pandemic recovery. Unlike earlier static models, it examines how financial development can serve as a channel for enhancing the impact of FDI. Policy Implications: The findings emphasize the importance of reforming the financial sector, enhancing access to credit, and bolstering institutional frameworks to utilize FDI inflows better. Enhancing financial intermediation and governance is crucial to transforming FDI-driven growth into sustainable, inclusive development aligned with the Sustainable Development Goals (SDGs).

Does University Type Affect Wage Returns? Instrumental Variable Evidence Rahayu Nurhidayah Haris; Muhammad Furqan; Sugiarti Yusuf
Jurnal Ilmu Ekonomi Terapan Vol. 11 No. 1 (2026)
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.v11i1.79161

Objective: This study examines whether university type—public versus private—influences graduates’ wage outcomes. It addresses a central policy question on how institutional differences shape labor market returns and inequality in higher education. Design/Methods/Approach: Using pooled cross-sectional data from the Indonesian Family Life Survey (IFLS) waves 4 (2007) and 5 (2014), the analysis focuses on bachelor’s degree holders in wage employment. To mitigate endogeneity, both Ordinary Least Squares (OLS) and Instrumental Variable (IV) estimation are employed, with public university admission system reforms across cohorts serving as instruments. Findings: OLS results indicate that public university graduates earn 12.6%–25.2% more than their private counterparts, while IV estimates reveal larger premiums—89.5% in 2007, narrowing to 26.9% in 2014. Age-cohort analysis shows substantial advantages for younger graduates, particularly those aged 21–35, while differences become statistically insignificant among individuals aged 36 and above. Originality/Value: This study contributes new causal evidence on institutional heterogeneity in educational returns, an underexplored context in the global literature. By applying robust econometric techniques, it advances understanding of how institutional background interacts with labor market outcomes. Practical/Policy implication: The findings highlight the importance of institutional quality in higher education. Policymakers should prioritize reducing disparities between public universities and private universities to promote equitable access, improve labor market integration, and strengthen the efficiency of public investment in education.

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Journal Mail Official
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Kota surabaya,

Jawa timur

INDONESIA