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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
The Role of Economic Development in Export Performance in Islamic Countries Sari, Vita Kartika; Yaumidin, Umi Karomah
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.50958

Abstract

The necessity for a reevaluation of international trade has become increasingly apparent, particularly in Islamic countries. This study aims to estimate the economic development of selected Islamic countries, namely Egypt, Indonesia, Malaysia, Pakistan, Turkey, the United Arab Emirates, Brunei Darussalam, and Kuwait, in terms of export performance. This study was conducted within the broader context of Islamic countries, with a specific focus on analyzing dynamic panel data from 2010 to 2019. The dependent variable included exports of goods and services, while the regressors included GDP growth, broad money, and inflation. An estimation based on the panel generalized method of moments revealed a significant effect of export (-1) on export, a significant and negative impact of broad money on export, and a significant and positive effect on inflation. In contrast, GDP growth was not found to be significant. These findings are consistent with the high number of global Muslim consumers and the growth of Islamic finance assets. Currently, Islamic countries are prioritizing product diversification for both the Muslim and global markets. These findings indicate the need for increased economic development to achieve the practical implications of sustainable economic growth in Islamic economies.
Socioeconomic Dynamics and Poverty Rate in East Java: A Panel Regression Investigation Sa'diyah, Nabilah; Pimada, Laila M.
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.51515

Abstract

Economic development can be described as a process of system or non-social system in order to achieve a better condition. It is often related to public welfare as evidenced by the poverty phenomenon experienced by the population. The population growth in a country must be controlled in order to prevent a threat to the country's welfare, since an increase in the population will lead to an increase in the need for fulfillment. This condition should be balanced with a proper income alignment. East Java Province has the second highest population in Indonesia. In fact, this condition has had an impact on the economic development process, particularly in East Java, where there has been an increase in the poverty rate. Over the past decade, the poverty rate in East Java has fluctuated. It showed an increase in a few years, namely 2015, 2020, and 2021, with an average increase of 0.88%. This study aims to identify the effects of several factors on the poverty rate in East Java between 2017 and 2022. Furthermore, this study used a quantitative method with a panel regression analysis. The independent variables included open unemployment rate, labor force participation rate, minimum wage, and education level. This study found that open unemployment rate and minimum wage affected poverty rate. In contrast, labor force participation rate and education level did not affect poverty rate.
Women's Participation in Governance: A Quick Fix to Development Constraints in Sub-Saharan Africa? Isayomi, Abiodun Samuel; Omodunbi, Olumide Olumuyiwa; Ogunleye, Akin George; Olabiyi, Kehinde Ajike; Olaniyan, Samson Olajide
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.51659

Abstract

The inhuman socioeconomic repercussions of corruption and bad governance inherent in successive male-dominated governments have generated agitation for increased women's participation in governance. Primarily, this agitation is based on the premise that women are less inclined to corruption, which is a major impediment to good governance. Given the notoriety of these two impediments to development, this study aims to investigate the relationship between women's participation in governance, corruption, and quality of governance in sub-Saharan Africa from 1996 to 2021. This study analyzed annual panel data of four sub-Saharan African countries using the autoregressive distributed lag model and the Granger causality test. Governance quality was proxied by government effectiveness, while women's participation in governance and corruption were proxied by the number of women in government positions and control of corruption, respectively. Economic development and institutional quality were used as control variables. The findings revealed negative main and interaction effects of women's participation in governance and corruption on governance quality, unidirectional causality from corruption to women's participation in governance and from governance quality to women's participation in governance, and bidirectional causality between corruption and governance quality. Quantitative increases in women's participation in governance and corruption exacerbates governance quality. Women's ability to participate in governance is determined by the prevalence of corruption in previous years. Anticorruption campaigns that focused on women's participation in governance often result in reductions in corruption insufficient for improvement of governance quality. Corruption and bad governance are mutually reinforcing. Governance quality determines women's participation in governance. To minimize corruption and bad governance, sub-Saharan African countries should shift their focus away from merely increasing the number of women in government positions to building strong institutions capable of creating a meritocratic political and socioeconomic environment in which selfless women and men have equal chances of being elected or appointed to public offices.
The Impact of Korean Wave on South Korea's Export of Consumer Goods to ASEAN-5 Country Tandy, Alyssa Chiara Handini; Handoyo, Rossanto Dwi
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.53284

Abstract

This study aims to assess the impact of the Korean Wave on the export of consumer goods from South Korea to the ASEAN-5 countries (Indonesia, Malaysia, Thailand, Singapore, and the Philippines) from 2010 to 2020. This study took into account various factors to analyze the export dynamics, such as gross domestic product (GDP) per capita, interest rates, Google search trends, and the geographical distance between countries. Cultural goods exported from South Korea were used as a measure of the Korean Wave, employing the gravity model and the fixed effects model (FEM) for analysis. The results of this study indicated a positive impact of the Korean Wave variable on the export of South Korean consumer goods. Additionally, the findings revealed that variables such as South Korea's GDP per capita, distance, and exchange rates had a negative impact on the export of such goods. Furthermore, this study highlights the positive impacts of the ASEAN-5 countries' GDP per capita and Google search trends on the export of South Korean consumer goods.
The Role of Socioeconomic and Female Indicators on Infant Mortality in West Nusa Tenggara: A Panel VECM Analysis Arini, Rechtiana Putri; Mumtazah, Soraya Afkarina; Siahaan, Rio Manuppak; Kartiasih, Fitri
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.53416

Abstract

West Nusa Tenggara Province has an infant mortality rate that surpasses the national average. Additionally, it is also characterized as having a high Gini ratio and gender inequality index. Therefore, this study aims to examine the differences in classification among different regions, the long-term and short-term impact, and the causal relationship between socio-economic factors and female indicators in relation to infant mortality. This study used the co-integration method of the panel VECM and applied the natural breaks (Jenks) classification method based on panel data from 10 regencies/cities in West Nusa Tenggara Province between 2012 and 2022. This study discovered two instances of co-integration where the life expectancy of women was found to have a negative impact, while the percentage of women working full-time was found to have a positive impact on the long-term infant mortality rate. Infant mortality rates in the short term showed a significant relationship with the cointegration coefficient, mean years of schooling of women, life expectancy of women, and percentage of women working full-time. There is a direct causal relationship between the mean years of schooling of women and the percentage of people living in poverty and the infant mortality rate. This study is expected to serve as a basis to guide the Government of West Nusa Tenggara Province in promoting equity in education, equal job opportunities, adequate healthcare facilities, and increased investment to decrease infant mortality.
Micro and Small Enterprises' Export Competencies and Cooperation in Indonesia Tambunan, Tulus Tahi Hamonangan
Journal of Developing Economies Vol. 9 No. 1 (2024)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v9i1.53667

Abstract

Micro, small, and medium enterprises (MSMEs) have an important role in Indonesia to play not only as a source of employment but also growth of gross domestic product (GDP) and exports, specially manufactured goods such as garments, food, footwear, electronics, and crafts. To support MSME exports, the Indonesian government hopes to build stronger collaboration with them. Many journal articles regarding exports of MSMEs have been executed in developing countries. However, no research has been conducted concerning the cooperative role of MSMEs in supporting their exports. Therefore, this descriptive study filled the gap by analyzing the cooperation of MSMEs in supporting their exports in Indonesia by analyzing secondary data from the 2019 Profile of Micro and Small Industries (MSIs) in the Manufacturing Industry from the Indonesian Statistics (BPS) and online database from the Indonesian Minister of Cooperative and Small and Medium Enterprise. Although the data does not provide further information regarding how many MSEs are members of cooperatives who export, the scatter plot in this study shows that there is a positive relationship between the number of MSEs who export and the number of MSEs who are members of cooperatives. Even though other factors had a stronger influence on export competencies, cooperatives still supported MSEs to export their goods. This study contributes to more substantial empirical evidence on the relationship between cooperatives and MSMEs in Indonesia and developing countries.
Digitalization’s Impact on Micro-Firm Performance and Worker Welfare in Sumatra Anggara, Rizki Tri; Alfahma, Elsya Gumayanti
Journal of Developing Economies Vol. 10 No. 2 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i2.64187

Abstract

Objective: This study aims to analyze digitalization’s impact on micro-firm performance and workers’ welfare in Sumatra’s manufacturing sector.Methods: Employing a Propensity Score Matching (PSM) method, this research compares firms and workers who have adopted digital technologies with a control group.Findings: The findings reveal that digitalization significantly enhances firm income and provides workers with opportunities for higher earnings and extended working hours. However, the findings also show that digitalization did not enhance business stability during the COVID-19 pandemic. These insights highlight the transformative potential of digital technologies in driving economic growth and improving livelihoods while also uncovering critical gaps that must be addressed.Value: This study underscores the need for targeted policies to promote equitable digital adoption, expand digital infrastructure, and provide workforce training programs. By addressing these challenges, digitalization can bridge regional and socio-economic divides, ensuring its benefits reach smaller firms and marginalized workers. Policy implication: The findings contribute valuable insights for policymakers to develop strategies that strengthen the resilience, competitiveness, and inclusivity of Sumatra’s micro-manufacturing sector, fostering a more sustainable and equitable economic landscape in the region.
Impact of Asian Financial Stress on Indonesian Bank Credit Growth Saputra, Sahdan; Ihyani, Layali
Journal of Developing Economies Vol. 10 No. 2 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i2.65458

Abstract

Objective: This study aims to analyze the influence of the Financial Stress Index from Asian countries with high economic connectivity on the growth of bank credit in Indonesia, such as Singapore, China, Hong Kong, Japan, and Malaysia.Methods: Using time series data from the growth of general bank credit in Indonesia and the Financial Stress Index (FSI) from each country from January 2011 to August 2023, the total number of observations (N) in this study is 152. Therefore, this study uses the multiple linear regression method with the Ordinary Least Squares (OLS) approach. Findings: The findings reveal that the Financial Stress Index (FSI) from economically connected Asian countries does not significantly influence Indonesia’s bank credit growth. In contrast, domestic FSI shows a negative and significant effect, indicating that internal financial stress directly slows credit expansion and increases overall credit risk. The results also show that banks with larger asset sizes experience a greater reduction in credit growth, consistent with the negative impact of the SIZE variable. Additionally, higher operational costs (BOPO) further hinder credit growth, while increases in third-party funds (TPF) significantly enhance credit expansion and support lending capacity.Originality/Value: This study offers new evidence by showing that external financial stress from major Asian partners does not affect Indonesia’s credit growth, while domestic stress plays a decisive role. These findings expand the literature on financial spillovers by revealing Indonesia’s unique resilience compared to other emerging markets.Practical/Policy implication: These findings suggest that bank management should anticipate the Financial Stress Index (FSI) stemming from domestic sources by diversifying their credit portfolios. Meanwhile, regulators can formulate policies to mitigate the impact of external financial stress, such as macroprudential policies and regulations that encourage banks to increase their capital adequacy ratio during periods of economic stress.
Can Public Health Spending Mitigate the Impact of CO2 Emissions on Child Mortality in Sub-Saharan Africa SSA? Iliyasu, Ibrahim; Lawal Gambo, Suleman; Sabitu, Abubakar
Journal of Developing Economies Vol. 10 No. 2 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i2.68955

Abstract

Objective: This study aligns with the actualisation of SDGs targets 3.2, 11.6, 13.3 and 17.1 in Sub-Saharan Africa and contributes to the contemporary discourse on health-environment-public policy dynamics. Specifically, it examines the individual and interactive effect of carbon dioxide emission and per capita public health spending on child mortality.Methods:  Data on 44 SSA countries over the years 2000-2020 was analysed using a set of Panel estimation techniques (pool OLS, FE and 2-step difference GMM)Findings: The findings suggested that CO2 emissions have significant increasing impact on “infant and under-five mortality rates”; while, higher per capita public health spending decrease the level of infant and under-five mortality rates. The interaction term indicates that per capita public health spending can dampen the adverse impact of C02 emissions on infant and under-five mortality rates.Originality/Value: evidence suggested that increase in per capita public health spending amid rising CO2emissions works to neutralise the adverse impact of CO2 emissions on “infant and under-five mortality rates. Thus, the study contributes to integrating health-environment-public policy literaturePractical/Policy implication: The study provides insight for the imperative of achieving global CO2 emissions reduction target and increasing average per capita public health spending in SSA.
Debt And Happiness: A Generalized Order Logit Analysis Purwanto, Edy; Purwono, Rudi; Sukartini, Ni Made
Journal of Developing Economies Vol. 10 No. 2 (2025)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v10i2.70785

Abstract

Objective: Financial literacy can influence borrowing attitudes and behaviors. Low financial literacy among Indonesians may impair debt manageability and lead to psychological distress. This empirical research aimed to analyze the effects of debt on happiness in Indonesia.Methods: This study used cross-sectional data from the 2007 Indonesia Family Life Survey (IFLS). Happiness was measured on a four-point ordinal scale, namely very unhappy (1), unhappy (2), happy (3), and very happy (4). Given the nature of the dependent variable, a generalized ordered logit model was applied to estimate the relationship between debt and happiness. This approach is well-suited to address the study objective by capturing varying effects across different levels of happiness. Findings: Results showed a significant negative relationship between debt and happiness (coefficient = -0.145, p < 0.01). The marginal effect indicated that debt reduced the likelihood of being happy and very happy by -0.20% and -0.83%, respectively. Depression had the strongest negative impact (-5.67%), while marriage (4.03%), household economic adequacy (3.40%), health care (2.31%), and physical health (1.99%) were the positive contributors. Originality/Value: This study contributed to the limited research examining the link between debt and well-being in developing economies, focusing on Indonesia’s socioeconomic and cultural context. Practical/Policy implication: Financial literacy needs to be enhanced to improve borrowing decisions and debt management among Indonesians. Strengthening financial education programs and regulating non-formal lenders are essential to prevent exploitative lending practices. Moreover, integrating debt awareness into mental health programs and disseminating information through mass and social media can help mitigate the psychological impact of debt.