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JDE (Journal of Developing Economies)
Published by Universitas Airlangga
ISSN : 25411012     EISSN : 25282018     DOI : -
Core Subject :
The Journal of Developing Economies (JDE) is a journal published by the Department of Economics, Faculty of Economics and Business, Airlangga University with the ISSN 2541-1012 (print version) and 2528-2018 (online version). This journal is published every 6 months, June and December, through a review process from both internal (Airlangga University) and external reviewers.
Arjuna Subject : -
Articles 166 Documents
Tourism Development Towards International Competitive Tourism in Promoting The Economy of East Java Yustie, Renta; Ariska, Ricky Angga; Purwitasari, Fadilla
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.31429

Abstract

The tourism sector is one of the economic sectors that has a characteristic and contributes to the GRDP (Gross Regional Domestic Product) in East Java. East Java has a large tourism potential with a pattern of tourism development that can contribute to increasing East Java's economic growth. The role of the tourism sector in East Java can improve the national economy and contribute to the national GDP (Gross Domestic Product) of Indonesia. This study aims to determine the development of the tourism sector in East Java during 2016 to 2020 using the LQ (Location Quotient) method so as to produce the tourism sector in the basic or non-basic sector category. The data used is secondary data and this research is a quantitative research. The results of the calculation of LQ (Location Quotient) can help develop and build the tourism sector that is in the basic or non-basic category. Keywords: LQ, GDP, Tourism Sector, Development Economic, East Java
Determinants of Income Inequality Villages and Cities in Indonesia Juniati, Wike; Abdullah, Muhammad Latif; Wibowo, Muhammad Ghafur
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.33980

Abstract

The image of development in Indonesia is getting worse when development progress is felt by the upper class. The segmentation of the upper and lower levels of society is reflected in the gap between life in the village and the city. The purpose of this study is to analyze the determinants of income inequality based on the classification of villages, cities, and between villages and cities in Indonesia. The data analysis method used is panel data regression which is an analytical technique that is observed over a certain period. The data used is annual secondary data from 2016-2020 in 34 provinces of Indonesia. Inequality analysis is carried out by calculating the Gini index based on household expenditure data. Economic growth, population, human development index, domestic investment, technology development index, and employment opportunities are independent variables. The results of this study found that there was a significant negative relationship the technology development index and positive relationship population in city and between village and city areas. Then the variable employment opportunity have a significant negative relationship to income inequality in the village.
Crude Oil Price and Standard of Living Nexus: Evidence from Nigeria Musa, Kabiru Saidu; Mairiga, Tahir Hussaini; Yakubu, Yahaya
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.34575

Abstract

This article is carried out through an analysis of the influence of crude oil prices on the standard of living in Nigeria by using additional variables as supporters, such as crude oil income, inflation, and exchange rates. According to data availability, the utilization data used in this study is the annual time series data from 1981-2019. The main findings are: (1) there is a long-term equilibrium connection among the series. (2) crude oil price has a negative impact on the standard living. (3) crude oil revenue negatively affects the standard of living. (4) inflation has a negative impact on the standard of living. (5) exchange rate positively affects the standard of living. (6) convergence speed indicates that system movement to the equilibrium path is quick. Therefore, this implies that despite the abundance of oil in the country. The masses do not witness its impact. Diagnostic checks confirmed the perfectness of the model. DOLS, FMOLS and CCR as robustness checks revealed similar results with ARDL long-run results.
Measuring Corruption in Indonesia Using Fuzzy Logic Waluyo, Joko; Tri Haryanto; Bambang Eko Afiatno; Tri Achmadi
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.35137

Abstract

Corruption is a phenomenon not easy to observe. Corruption theory and existing definitions are ambivalent, both in size and level. Mathematical models, and econometrics are prone to statistical errors. Fuzzy logic facilitates more humane modeling and analysis. Fuzzy logic is not bound by strong assumptions, as a solution to solve complex problems, and not precise, including corruption analysis. The main objective of this study is to measure corruption in Indonesia. The research method used fuzzy logic by specifying the Mamdani fuzzy inference system (FIS) model. FIS Mamdani was chosen because it is more human manner. Sources of secondary data used in this research from various institutions. The results show that corruption time series data can be produced. During the research year (1995-2020), corruption that occurred in Indonesia was 36.14 percent of real GDP per capita.
Does Switching Cost Affect Dual Rural Banks Market Power? Fajri, Moh Najikhul; Purwono, Rudi
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.36547

Abstract

This study aims to review the effect of switching costs on rural bank market power. This study is using dynamic panel regression of the Generalized Method of Moments (GMM). This paper used panels of 1266 rural banks and 113 Sharia Rural banks from 2013 to 2019. To further analyze this study using Lerner Index as proxies of market power, Bertrand Competitions models as proxies of switching costs, and banking indicators covering bank size, equity, non-interest income, and the burden of allowance for productive assets (Lost Loans Provision). The results show that switching costs have a significant positive effect on the conventional rural bank and negatively affect sharia rural bank's market power. This condition is caused by various reasons, namely the limited choice of rural banks so that consumers survive the switching costs charged. Meanwhile, in sharia rural bank transparency is clearly seen on the side of mudharobah and musyarakah which makes it unable to increase financing margins freely.
Effect of Cigarette Prices on Cigarette Consumption in Indonesia: Myopic and Rational Addiction Studies Lesmana, Indra; Khoirunurrofik, Khoirunurrofik
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.37340

Abstract

This study analyzes the effect of cigarette prices on cigarette consumption in Indonesia. By using aggregate macro data on cigarette consumption (administrative data) for 2015-2020, estimated using OLS, 2SLS, GMM, and System-GMM, we found that cigarette prices have a negative and significant effect on cigarette consumption based on myopic and rational addiction models. The estimation results also confirm that cigarettes are inelastic products where price changes do not significantly impact cigarette consumption. It implies that the Government needs to significantly increase excise rates and minimum selling prices regularly to control cigarette consumption more effectively.
Does Good Financial Development Attract Tourists? Evidence From ASEAN Countries Panjaitan, Makmur Tradesman Hasudungan
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.37433

Abstract

This study aims to examine the effect of financial development on tourism demand in member countries of Association of Southeast Asian Nations (ASEAN). The indicators are financial development index; financial institution depth index; financial institutional access index; and financial institutions efficiency index. Several control variables employed in this study are consumer price index, health expenditure, poor air quality, and trade openness. This study uses panel data between 2010 and 2018 from 10 ASEAN countries. Data are sourced from international institutions such as the World Bank, United Nation of World Tourism Organization (UNWTO), International Monetary Fund (IMF), and World Health Organization (WHO). The method used in the analysis is the static panel data regression. The results show that financial development has a positive effect on tourism demand. In terms of control variables' impact, consumer price index, health expenditure and trade openness have a positive impact, whereas poor air quality has a negative impact. The current study's implication on policy making is to develop the financial sector by increasing the number of ATMs and improving the mobile banking facilities
The Demand Creation Effect on the Indonesian Manufacturing Industry Sulistyaningsih, Lusi; Machmud, T.M. Zakir S.
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.37591

Abstract

This study analyzes the impact of Foreign Direct Investment that creates a demand creation effect on domestic companies in the Indonesian manufacturing industry in 2010-2015. This study uses Input and Output data for 2010 and Industri Besar Sedang data in 2010-2015, both of which come from the Badan Pusat Statistik. The Fixed Effects model came out as the best model because it reflected different firm characteristics. The study concludes that the larger the foreign presence and the firm's size in an industry, the more demand-creating effect it will create. However, FDI enters highly concentrated industries and industries with high levels of imports, which will negatively affect the demand creation effect.
African Continental Free Trade Area Agreement and the Agricultural Performance in Nigeria in the Post Covid-19 Era: A Simulation Focus on Agricultural Output, Trade, and Employment Akighir, David Terfa; Kpoghul, Emmanuel Tordue
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.38261

Abstract

The COVID-19 pandemic has unleashed negative economic consequences on the global economies and Nigeria inclusive. In response, Nigeria has launched the Economic Sustainability Plan (ESP) to leverage the potential gains of the African Continental Free Trade Area Agreement (AfCFTA) to accelerate agricultural performance in the post-COVID-19 era. Thus, this paper investigated the potential impact of AfCFTA on the performance of the agricultural sector in Nigeria in the post-COVID-19 era focusing on Agricultural output, trade and employment within the framework of a small macro-econometric model. The study used secondary data from 1970 to 2018 for a within-sample forecast and a twelve-year out-of-sample forecast spanning from 2019 to 2030. Two simulation experiments based on AfCFTA tariff reduction lines were conducted. Findings revealed that with tariff reduction under the AfCFTA, there is an increase in agricultural output, exports, employment, and the share of agriculture to GDP growth, as well as actual private consumption in Nigeria. The study concludes that if the AfCFTA is implemented, it will boost agricultural sector performance in Nigeria during the post-COVID-19 era. Based on these findings, the study recommended that the country implement mechanisms to overcome the challenges militating against agricultural production and exports in the economy to maximize the potential gains that AfCFTA provides. The government should also streamline its expenditures and invest hugely in infrastructural facilities such as roads, electricity, and expansion of sea-port facilities, communication networks and earth-dams to encourage dry-season farming activities.
Relationship between Outward FDI and Home Country Exports: An Empirical Study of Bangladesh Ravinder; Poonam; Saini, Vijender Pal
Journal of Developing Economies Vol. 7 No. 2 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i2.38898

Abstract

The present paper investigates the association between outward FDI, exports and growth using data from 1990-2021. The novel estimation procedure of ARDL is used in the study to examine the long and short-run dynamics. Further, the causal relationship between outward FDI, exports and growth is also examined. The results imply that exports, OFDI, and economic growth in Bangladesh have a long-term cointegrating relationship. Additionally, FDI from abroad helps to increase the nation's exports. The study's conclusions are supported by the negative coefficient of the error-correcting term. The study provides useful insights for the policymakers of the country.