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Determinants of Economic Growth in 8 ASEAN Countries 2008-2022 Padli Pawaid Yahya; Taosige Wau; Baiq El Badriati
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.v10i2.73069

Objective: This research aims to further examine the influence of investment, corruption, inflation, labor, and trade openness, and it can be seen that these are the determinants of economic growth through several of these variables in the ASEAN region countries for the 2008-2022 period. Methods: Panel data regression is analyzed using three approaches: the Common Effect Model (CEM), the Fixed Effect Model (FEM), and the Random Effect Model (REM). Model selection is determined through the Chow, Hausman, and Lagrange Multiplier tests. Classical assumption tests (normality, multicollinearity, heteroscedasticity, and autocorrelation) and significance tests (F-test, t-test, and R²) are conducted using EViews 10. Findings: Summarize the key results of your analysis. Highlight the main empirical relationships, theoretical outcomes, or trends identified in the study. Focus on the economic significance of these findings, how they contribute to understanding behaviors, mechanisms, or policy effects relevant to the research question. Originality/value: So that statistical results can be found by showing various variants, especially in the variables of corruption and inflation have no effect on economic growth, while the other three variables together, investment, labor and trade openness have a positive and significant effect on economic growth. Practical/Policy implication: Outline the practical implications of your findings for economic policy, regulation, or institutional decision-making. Suggest how policymakers, economists, or public institutions might apply your results. Where applicable, indicate how your research could guide future interventions, policy design, or economic reforms.

Financial Inclusion and Income Inequality in Asia: A Quantile Panel Analysis Linda Rosalina; Wisnu Wibowo
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.v10i2.73105

Objective: This empirical study investigates the heterogeneous impact of financial inclusion on income inequality across the economically and institutionally diverse Asian region. Specifically, it examines how the effect of financial inclusion varies across different segments (quantiles) of the inequality distribution, a dimension largely unexplored by prior research. Methods: Utilizing an annual panel dataset spanning 29 Asian countries from 2010 to 2022, the study employs the Panel Quantile Fixed Effect model. This robust econometric approach is selected to effectively control for unobserved country-specific heterogeneity and to address the non-normal, outlier-prone nature typical of income inequality data. Analysis is focused on the lower (Q10), median (Q50), and upper (Q90) quantiles. Findings: Estimation results consistently demonstrate that financial inclusion significantly reduces income inequality across all tested quantiles (Q10 ,Q50, Q90), with statistical significance maintained across the board (e.g., Q10: p=0.031, : Q90:p=0.059). The most substantial mitigating impact is identified at the median quantile (Q50), exhibiting a large negative coefficient of -4.9404 (p=0.000). This key finding suggests that FI is most effective in countries characterized by moderate levels of inequality. Among the control variables, trade openness significantly exacerbates inequality at the Q50 level, while other macroeconomic factors are generally insignificant. Originality: The primary novelty lies in the application of the Panel Quantile Fixed Effect method to a broad 29-country Asian sample to precisely capture FI’s differentiated impact. By providing nuanced, quantile-specific estimations, this research significantly advances beyond conventional mean-based studies (such as OLS and GMM), confirming that financial inclusion’s role in inequality reduction is heterogeneous and conditional on a country’s initial inequality level. Policy implication: These findings underscore the critical need for adaptive, non-uniform financial inclusion policies. Policymakers in Asia must tailor their financial inclusion strategies—including the types of services offered—based on the specific level of inequality they currently confront. This targeted approach is essential to maximizing the effectiveness of financial inclusion in promoting sustainable income equality.

Regional Inequality in Daerah Istimewa Yogyakarta Province 2014-2024: A William Index Analysis Khofifah Ghomzah; Faza Safira Mahardika Putri; Berliana Ranti Fara Fauziah
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.v10i2.73818

Objective: Economic growth is an important aspect that reflects the success of a country or region’s economic development. The economy of Yogyakarta Province tends to increase from 2014 to 2024 based on the increasing GRDP per capita data, but there is still a problem of inequality. Income inequality between regions can lead to development problems and economic instability. The purpose of this study is to determine the level of inequality between regencies/cities in Yogyakarta Province from 2014 to 2024. This study includes empirical studies that make important contributions by providing the latest empirical evidence on the condition of regional inequality in the Special Region of Yogyakarta and by analyzing the characteristics of economic growth in the region. Methods: The data used in this study is time series data from the Gross Regional Domestic Product per capita and Total Population of Regency/City in the Province of DIY for the period 2014-2024. To determine and analyze inequality, the Williamson Index is used. indings: The average inequality between regions in DIY Province is 0.8296, which, according to the criteria (WI > 0.5), indicates a high level of inequality between regencies/cities. This value indicates that inequality among the regencies/cities in Yogyakarta Province is high, or economic growth between regions is uneven. Originality/Value: This study provides updated evidence for Yogyakarta’s unique context. This study offers a novel approach by extending the analysis period to 11 years, from 2014 to 2024, including the latest data. Policy Implication: Recommendations include evaluating and reformulating strategic policies for economic development based on leading sectors, prioritizing equitable infrastructure development, improving access to education and healthcare, and fostering potential sector development in underdeveloped areas to reduce regional disparities.

Impacts of Capital Formation, Labor, Human Development, and Tourism on Economic Growth in Yogyakarta Province Zulaekha Setiyani; Jihad Lukis Panjawa; Jalu Aji Prakoso; Yustirania Septiani
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.v10i2.74812

Objective: This study investigates the determinants of regional economic growth in the Special Region of Yogyakarta, focusing on five districts and cities during the period 2011–2024. The research addresses the problem of persistent interdistrict disparities despite Yogyakarta’s consistently higher economic growth than the national average. The main objective is to identify the key factors influencing regional growth and to assess their relative contributions within a tourism-driven economy. This empirical research is relevant to the broader macroeconomic context of regional development and income distribution. Methods: An empirical analysis using static panel data regression with a Fixed Effect Model (FEM) is employed. The dataset covers annual observations from 2011 to 2024 for five administrative areas. Variables include Gross Fixed Capital Formation (GFCF), the Human Development Index (HDI), labor force participation, and tourism income. The FEM method effectively controls for regional and temporal heterogeneity, yielding robust estimates of growth determinants. Findings: Empirical results reveal that GFCF, HDI, and tourism income have significant, positive effects on regional economic growth, underscoring the importance of investment, human capital, and tourism as primary drivers of growth. Conversely, the labor force variable shows no statistically significant impact. These findings underscore the distinct structure of Yogyakarta’s economy, where capital formation and tourism-based income play a more dominant role than labor quantity in driving growth. Originality/Value: This study enriches existing literature by reassessing growth determinants using updated data and emphasizing Yogyakarta’s tourism-based regional economy. It fills gaps in prior studies marked by mixed findings and limited tourism-focused analyses, offering new empirical insights into the tourism growth nexus at the subnational level. Policy Implication: Findings suggest that local governments should strengthen investment, human capital, and tourism development to achieve inclusive and sustainable growth. Policy efforts focusing on infrastructure, education, and tourism promotion are essential to reducing interdistrict disparities and fostering balanced regional development.

Rising Food Inflation in Nigeria: Do Monetary Policy Interventions Matter? Innocent Chile Nzeh
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.v10i2.75884

Objective: The rising cost of food in Nigeria, especially in recent times, has increased the level of hunger and frustration among Nigerians. Consequently, several policies have been put in place to increase food productivity on the one hand and reduce the high level of food inflation on the other. This study examined the response of food inflation to the CBN’s manipulation of monetary policy tools. The novelty introduced in this study is the use of the vector autoregressive (VAR) model in the analysis of the response of food inflation to the manipulation of monetary policy tools in Nigeria. Methods: The study used monthly data that spanned the period from 2007M12-2024M5, while the VAR framework was adopted for analysis. Findings: The study found that food inflation responded positively to shocks in the broad money supply (M2) across all periods, except period one. It was also found that, while food inflation responded negatively to the monetary policy rate (MPR), the Treasury bill rate (TBR), and bank reserves in the majority of periods, its response to the exchange rate was positive in all periods. In another respect, the findings indicate that the monetary authorities responded positively to shocks in food inflation by manipulating the MPR, TBR, and the exchange rate. In particular, the MPR, TBR, and exchange rate responded positively to shocks in food inflation during the study period. Originality/Value: This study contributes to extant literature through methodology. It applies the vector autoregressive (VAR) model in the analysis to take care of the possible feedback arising from the implementation of monetary policy. This approach departs from previous studies in Nigeria which adopted frameworks such as the autoregressive distributed lag (ARDL) model and the non-linear ARDL. Practical/Policy implication: Address food inflation using monetary policy tools and complementing them with fiscal policies. In addition, the exchange rate policy should be adjusted to favour food imports in the short run, while the long-run target should be to increase domestic food production through various measures.

Efficiency of Indonesian Government Education Spending: A Stochastic Frontier Analysis Approach I Made Jyotisa Adi Dwipatna
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.v10i2.77487

Objective: Education serves as a foundation of human development and a key driver of national competitiveness, with community outcomes significantly shaped by the allocation and efficiency of government education expenditure. Design/Methods/Approach: This study evaluates the effectiveness and efficiency of government education spending in relation to educational outcomes. Using panel data from 34 provinces in Indonesia for the period 2016–2023, sourced from the Indonesian Central Bureau of Statistics and the Ministry of Finance, the analysis applied the Stochastic Frontier Analysis framework with the Maximum Likelihood Estimation approach. Findings: Government spending on education positively and significantly affects educational outcomes, with an average technical efficiency score of 0.8365. Furthermore, per capita GRDP, poverty levels, and the population growth rate are also found to positively influence educational outcomes in Indonesia. Originality/Value: This study uniquely applies Stochastic Frontier Analysis to provincial-level data, filling gaps left by previous correlation-based research. Using SFA provides a deeper understanding of efficiency variations across provinces, offering insights that extend beyond simple correlations. Practical/Policy implication: The findings of this study have significant implications for Indonesian education policy. Government spending on education demonstrates a positive impact on educational outcomes, emphasizing the need for more efficient and equitable budget allocation across regions. With a technical efficiency level of 83.65 percent, there remains a 16.35 percent margin for improvement to achieve optimal resource utilization. Policymakers should strengthen fiscal governance by enhancing transparency, accountability, and adopting performance-based allocation mechanisms. Stronger coordination between central and local governments, supported by the integration of technology in planning and monitoring processes, can further improve efficiency and reduce regional disparities. Overall, education expenditure should be directed not only toward achieving technical efficiency but also toward ensuring equitable educational outcomes that strengthen human capital development and national competitiveness.

The Influence of Health Spending and Political Affiliation on Stunting Prevalence In Indonesia: A Dynamic Panel Analysis (2015-2022) Lestari Lestari; Heni Wahyuni; Wisnu Setiadi Nugroho
Journal of Developing Economies Vol. 11 No. 1 (2026)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v11i1.63547

Objective: This study evaluates the impact of health function spending and political affiliation on stunting reduction in Indonesia from 2015 to 2022. Design/Methods: Using the Grossman health production function model to examine how socioeconomic, demographic, environmental, and food adequacy factors influence stunting prevalence among children under five. A dynamic panel analysis via the Generalized Method of Moments (GMM) is employed to address potential endogeneity. Findings: The results show that quantifying health function spending as the ratio of spending realization to total regional budget (APBD) does not significantly impact the reduction of stunting prevalence across all provinces, but becomes impactful when measured per capita. In this case, health function spending significantly reduces the prevalence of stunting. Additionally, political affiliation plays a crucial role. Regions governed by leaders affiliated with the central government tend to demonstrate greater success in reducing stunting. Originality/Value: This study introduces a political dimension to examining the health production function by interpreting political affiliation as a factor mediating the relationship between health function spending and stunting prevalence. Practical/Policy implication: These findings suggest that to enhance the effectiveness of health spending, policymakers should prioritize per capita allocations and ensure that funds are directed toward regions and populations most in need. Additionally, efforts should be made to mitigate the influence of political competition on health budget allocation, ensuring that resources are distributed based on need rather than political affiliation

Economic Reforms and Health Indicators in Nigeria Saheed O. Olayiwola; Francis O. Adeyemi; Musibau O. Ogundeji
Journal of Developing Economies Vol. 11 No. 1 (2026)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v11i1.65039

Objective: The economic reform programmes have failed to yield the anticipated improvements in health outcomes in Nigeria, due to deteriorating health outcomes. This study empirically examines the effect of economic reforms on health indicators in Nigeria. Design/Methods/Approach: The study employed descriptive analysis and Autoregressive Distributed Lag estimation technique (ARDL) with time series data extracted from the World development reports. Findings: The trend analysis reflects unimpressive impacts of economic reforms on the health indicators. The ARDL results show a mix of improvement and deterioration in the health indicators. A 10% increase in domestic health expenditure increases Immunization and life expectancy by 6.3%, and 0.1% in the long run, and 3.8%, and 0.1% in the short run. It decreases undernourishment by 3.2%, reduces stunting by 0.4% and infant mortality by 0.03% in the short run. A 10% increase in Out-of-pocket expenditure increased undernourishment by 5.9%, reduced prenatal care by 9.6%, stunting by 3.3%, and life expectancy by 0.4% in the long run. A 10% change due to social sector reform increased immunization by 1.9%, prenatal care by 0.9%, increased HIV/AIDS infections by 0.1%. A 10% change due to trade reform increased the immunization by 3.9%, HIV/AIDS infection by 0.5%, in the short run. A 10% change in domestic financial reform increased Immunization by 4.6%, HIV/AIDS infection by 1.9%, reduced prenatal care by 1.5%, and undernourishment by 2.3%. These results implied that economic reform alone cannot provide the expected improved outcomes in health indicators. Originality/Value: This study extends empirical investigation to cover social sector reform, domestic financial sector reform, trade reform and SAP, NEEDS, and transformation agenda. Practical/Policy implication: Actions on economic transformation and health indices must address distortions that inhibit the realization of the economic reform agenda. Government should be more intentional in curtailing the distortions that impede the growth process and carefully choose policy variables for economic reform and health outcomes.

The Impact of Public-Private Partnerships on Infrastructure Investment and Economic Growth: A Comparative Study Tryson Yangailo
Journal of Developing Economies Vol. 11 No. 1 (2026)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v11i1.65493

Objective: This study examines public-private partnership (PPP) investments in the infrastructure sectors of Brazil and China and their impact on economic growth. The study analyzes sector-specific investment behavior in water, energy, and transportation to determine its alignment with national development priorities and stages. The empirical analysis provides comparative insights into the influence of infrastructure investment strategies on macroeconomic outcomes. Design/Methods/Approach: This study uses a comparative empirical framework, drawing on panel data from the World Bank from 1994 to 2023. Jamovi software is used to statistically analyze the relationship between sectoral purchasing power parity (PPP) investments and gross domestic product (GDP) growth. The analysis focuses on the water, energy, and transportation sectors, examining the magnitude and consistency of investments to evaluate their economic impact. This methodological approach is ideal for identifying sector-specific effects and comparing different national investment strategies. Findings: The study finds that Brazil’s PPP investments are heavily concentrated in energy infrastructure. These investments are large but irregular, which introduces economic volatility and undermines long-term stability. In contrast, China implements a more balanced and consistent investment strategy across the water, energy, and transportation sectors. Transportation investments in China show the strongest positive correlation with GDP growth. However, energy investments exhibit a negative correlation, indicating inefficiencies and resource misallocation. These results underscore the importance of prioritizing infrastructure sectors with higher economic returns while addressing inefficiencies in others. Originality/Value: This research contributes to the existing literature by offering a cross-country, three-decade comparative analysis of sector-specific PPP investments, emphasizing the differential economic outcomes of investment strategies. Unlike previous studies, this research integrates sectoral investment patterns with macroeconomic performance, highlighting the nuanced relationship between investment consistency, sector selection, and economic stability. Practical/Policy implication: The findings inform policymakers and development planners about how to optimize PPP investment strategies. The findings suggest prioritizing transportation infrastructure for higher economic returns, balancing large-scale projects with steady, incremental investments, and strengthening governance and regulatory frameworks to mitigate inefficiencies. The study provides actionable guidance for sustainable infrastructure planning to ensure that PPP investments maximize short- and long-term economic growth.

Economic Crises and Inequality: The Case of Bolivia Antonio N Bojanic
Journal of Developing Economies Vol. 11 No. 1 (2026)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v11i1.65719

Objective: This paper examines the impact of three types of economic crises – banking, inflation, and foreign exchange reserves crises – on various indicators of economic inequality in Bolivia. Design/Methods/Approach: The study utilizes a GMM framework and quarterly data spanning from 1960 to 2023. GMM methodology is utilized for several reasons: (i) possible endogeneity of the regressors is overcome using instruments to produce consistent and unbiased estimates; (ii) it does not require the specification of the full distribution of the errors, making GMM estimates more robust; and (iii) it accounts for heteroskedasticity and autocorrelation, common issues in time-series analysis like the one conducted here. Findings: The findings highlight the nuanced effects of these crises: banking and inflation crises generally reduce income inequality, while foreign exchange reserves crises exacerbate it. Specifically, an increased likelihood of a banking crisis is associated with reductions in the Palma ratio, the poverty gap, the Gini coefficient, and the Atkinson and Theil indices, and with improved income shares for the bottom 40 percent. Similar patterns are observed during inflation crises. In contrast, foreign exchange reserve crises lead to higher Palma ratios and poverty gaps, indicating worsening income inequality and rising poverty levels. The study underscores the importance of maintaining robust safety nets to protect vulnerable populations during periods of economic distress. Originality/Value: A key contribution is to highlight the varying impacts of different types of economic crises on income inequality in a developing economy. Practical/Policy implication: From a policy perspective, since all types of crises – banking, inflation, and foreign exchange reserves – are likely to harm long-term growth and stability, the Bolivian government should maintain effective safety nets that support the poor during periods of economic distress.

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Contact Name
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Contact Email
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Phone
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Journal Mail Official
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Location
Kota surabaya,

Jawa timur

INDONESIA