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JDE (Journal of Developing Economies)
Published by Universitas Airlangga
ISSN : 25411012     EISSN : 25282018     DOI : -
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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.
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Articles 166 Documents
Impact Of Covid -19 Pandemic on Foreign Direct Investment in Nepal from South Asian Perspectives Chaudhary, Manoj Kumar; Ghimire, Rudra Prasad; Ghimire, Dinesh Mani
Journal of Developing Economies Vol. 5 No. 2 (2020)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v5i2.21409

Abstract

Foreign Direct Investment (FDI) is an essential source of economic development. It has a broad relationship with different dimensions of the mixed economies. Like other development assistance, FDI also needs the best economic environment. This investigation aims to find the impact of Covid -19 on FDI inflow and other barriers to receiving FDI commitment in Nepal. This study is descriptive and analytical. Secondary data are used in the study. Foreign direct investment can be obtained as the government prioritized agriculture, tourism, energy, IT, infrastructure, etc., considering rapid economic Development. The government of Nepal is accepting and implementing foreign investment proposals of donor commitments. However, the Covid -19 pandemic has reduced FDI commitments funds as envisioned. Pandemic is not the only barrier of investment commitment. Still, there are also investment barriers are like, Business environment, poor infrastructure, lack of human resource skills, political transitions, weak governance, natural calamities, diverse and complex geography, tax slab, red tape, and climate change are critical in Nepal. Though the FDI in Nepal till 2019 was an upward trajectory, the 2020 pandemic has reduced it as Nepal's primary economic development source. South Asian environment can create FDI friendly environment in Nepal. Finally, this paper is a new one and full authority for future researchers.  Keywords: Covid-19 pandemic, Foreign Direct Investment, Commitment, Business Environment, Nepal JEL: F23, I1, M0
The Relationship Between Gross Domestic Product with International Balance of Payment: Empirical Evidence from Indonesia Syukri, Adya Utami
Journal of Developing Economies Vol. 5 No. 2 (2020)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v5i2.18275

Abstract

This research aims to determine the relationship between gross domestic product, exports, imports, foreign exchange reserves, and foreign debt in Indonesia from 1978 – 2018. As a developed country, Indonesia must know the interrelatedness between the GDP and the variable in the international balance of payment to move the economy well. This research using the Vector Autoregression (VAR) method that includes ADF Test, Granger Causality, Johanssen Co-integration, Vector Error Correction Model (VECM), and forecasting with Impulse Response Function (IRF) and Variance Decomposition (VD). From the Granger causality test results that have been carried out among the five variables, it is concluded that there is no causality relationship, but there are six one-way relationships. Simultaneously, the cointegration test from the Johanssen Co-Integration test results in the five variables tested. Forecasting for the next ten years through the IRF and VD tests shows that GDP positively responds to foreign debt and exports. Exports provide a positive response to GDP and imports. Imports give a positive response to exports, GDP, and foreign exchange reserves. At the same time, foreign debt gives a positive reaction to GDP and imports. Then foreign exchange reserves provide a positive response to exports and foreign debt. The government needs to allocate funds from foreign debt to the export sectors to increase GDP.  Keywords: Causality, VECM, Gross Domestic Product, Exports, Foreign Debt Java Industry JEL: F14,  F41, C01
Applying Location Quotient and Shift-Share Analysis in Determining Leading Sectors in Teluk Bintuni Regency Maspaitella, Marcus; Parinussa, Sisilia M.; Ketysia Imelda tewernusa
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.22182

Abstract

Economic growth is an important aspect that reflects the success of a country or region's economic development. The changes of its driving sectors mainly influence the changes in economic growth. This study aims to identify the leading economic sectors and analyze the sectoral shifts of the Teluk Bintuni regency's economy. The data used in this study is the Gross Regional Domestic Product of both Teluk Bintuni Regency and Papua Barat province in the period from 2010 to 2018. In determining the leading sectors and analyzing the sector using Location Quotient and Shift-Share analysis. The results suggested that the manufacturing and mining, and quarrying sectors were the base sectors of Teluk Bintuni's economy. However, the result of Shift-Share analysis highlighted construction, education services, procurement of electricity and gas, and public administration, defense, and compulsory social security as competitive and progressive sectors during the same period. Policy implications of this study include evaluating and reformulating development strategies and programs and considering sectoral interconnection for further development planning. Keywords: Location Quotient, Shift-Share, Leading Sectors, Teluk Bintuni JEL: O11; R11; R58
Macroeconomic Factors That Affect Depositor Funds of Sharia Bank in Indonesia Sanjaya, Sigit
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.22279

Abstract

This study aims to determine the effect of macroeconomic factors on Islamic bank savings funds in Indonesia. Macroeconomic variables used; economic growth, government debt, exchange rates, trade balance, money supply (M2), and foreign direct investment. Macroeconomic data is obtained from the publication of the Central Statistics Agency (BPS). Depositors' fund data is obtained from the Financial Services Authority (OJK). The population consists of all Islamic commercial banks and Islamic business units. The sampling technique used total sampling, and data analysis was performed using multiple linear regression. Observation data from January 2005 to December 2019 used quarterly data. The results show that government debt and money supply (M2) positively and significantly affect depositors of Islamic banks in Indonesia. In contrast, economic growth, exchange rates, trade balance, and foreign investment do not significantly affect Islamic bank deposit funds in Indonesia. Keywords: Macroeconomic Factors, Depositor Funds, Sharia Bank JEL: C3, E00, Z00
Intertemporal Efficiency and Productivity Changing on Telecommunication Industry (TI) in ASEAN-5 Wulan Sari, Dyah; Sulistyaningsih, Lusi
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.21665

Abstract

The study aims to measure the technical and intertemporal efficiency and find the primary source of productivity change on top three telecommunication firms in each country of ASEAN-5 (Indonesia, Malaysia, Thailand, Philippines, and Singapore) from 2010 to 2016. Data Envelopment Analysis (DEA) bootstrapping with 2000 iterations, DEA window, and Malmquist index are applied to calculate technical efficiency, intertemporal efficiency, and productivity change. The estimation results elucidate that, on average, the technical efficiency of firms is relatively low. On the opposite, the intertemporal efficiency results indicate that the mean efficiency score of each window is high. However, the LDW and LDP tend to be high, showing that the efficiency scores fluctuate. The Malmquist index calculation yields that technological progress possesses a significant contribution to productivity change. Keywords: Technical Efficiency, Intertemporal Efficiency, Productivity Change, Telecommunication Industry, ASEAN-5 JEL: L8, F6, O5, O1, O3
Financial Market Development and CO2 Emissions Nexus in Nigeria: An Application of ARDL Approach Musa, Kabiru Saidu; Chindo, Sulaiman; Maijama'a, Rabiu
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.22448

Abstract

The paper investigated the impact of financial development on CO2 emissions in Nigeria from 1981 to 2019. In the process of investigating the impact, Augmented Dickey-Fuller and Philip Perron, as well as the Zivot-Andrew structural breaks, unit root tests were applied. Their results indicated that financial development, level of income, and CO2 emissions were stationary at the first difference and that of Zivot-Andrew structural breaks indicated a mixture of integration. Cointegration relationship among the variables was established through autoregressive distributed lag model bounds test. The autoregressive distributed lag model long-and-short run models results indicated that financial development and income level significantly negatively impact the CO2 emissions. The suggestion based on these results is that financial development and income level help in financing clean projects in the long-and-short runs. The Granger causality result revealed bidirectional causality from financial development to CO2 emissions, income level to CO2 emissions, and financial development to income level. The variance decomposition analysis indicates that financial development and income level have contributed less to CO2 emissions, and impulse response function results revealed that CO2 emissions respond negatively to shocks in financial development and income level. Therefore, we recommend expanding the Nigerian financial market in financing clean projects for a clean environment alongside checking income generation activities that bring about emissions of CO2, such as burning trees for charcoal production in the forest, among others. Keywords: Financial Market Development, CO2 Emissions, ARDL Approach JEL: G20, Q53, C32
The Determinants of Indonesia's Coal Exports Demand to Six Asian Countries Susanto, Deni Aditya; Admi, Randy
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.18916

Abstract

Coal is one of the most needed commodities globally because of its power plants and industrial machinery. According to World Coal Institute (2018), the world coal trade is dominated by several producing countries, Indonesia (ranked 2nd with 28.21 percent). Indonesia's coal exports are influenced by determinants of demand from export destination countries. This study will test at least four demand determinants in destination countries for their effects on Indonesian exports: exchange rate, foreign exchange reserves, population, and coal production. The study used six Asian countries (Japan, South Korea, India, Thailand, Philippines, and Malaysia) over 2008-2018. The methodology used is multiple linear regression with a series of chow and Hausman tests. Each variable has been tested by t-test (partial) and f test (simultaneous), and R2 test to analyze the percentage of the influence of the model on the dependent variable. This study revealed that the variable foreign exchange reserves and population growth of six Asian countries have a significant positive effect on Indonesia's coal export. Simultaneously, the exchange rate and coal production of the destination countries were not proven to have a negative impact but positively affected coal export. All variables have a significant and partially significant effect so that the model can explain the coal export variable at 93.08 percent (Adjust R-squared). Keywords: Coal Export, Demand Determinants JEL: C2, F1, Q31
Covid-19 Impact on The Marine Community Economy (Study of Sales at Mopah Market) Kaok, Maria
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.21352

Abstract

This paper aims to analyze the Impact of Covid-19 on the Marine Community's Economic (Study of Sales at Mopah Market). The population in this study was 33 respondents, using a saturated sample technique. This writing uses a quantitative approach with simple regression analysis techniques using SPSS 22. The results obtained are that there is a positive and significant influence on the Marine community's economy. Judging from the effects of data analysis, it shows that during the Covid-19 pandemic, the organization experienced a decrease in income. It is indicated by the results of the value of t-count = 5.068 and t-table = 1.695, sig = 0.000. From the result, we know that there is an impact of Covid-19 on the Marine people's economy in their sales in the Merauke regency Mopah market. The total revenue for sales before Covid-19 was 56% and 44% after Covid-19 was a negative impact that affected the Marine community's economy by a difference of 12%. This difference shows that Covid-19 has an impact on the economy in terms of income from daily sales. This impact caused the community to experience a decrease in their income during the Covid-19 pandemic. Keywords: Covid-19, Community Economy JEL Classifications: C10, Q0, A10
Economic Determinants of Growth Acceleration During Covid-19 Pandemic: A Comparative Study Between Indonesia, Thailand and Vietnam Wicaksono, Raden Mas Try Ananto Djoko; Rinaldi, Rina Putri
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.20834

Abstract

This paper analyzes the determinants of economic growth acceleration in Indonesia, Thailand, and Vietnam. It aims to reveal Thailand's plausible explanations and Vietnam's development success compared to Indonesia during the COVID-19 pandemic. This research provides an in-depth study parallel to a case study by using comparable variables. It examines six determinants: natural resources, investment, population growth, social-culture, human resources, and political. The evidence exhibits Vietnam has better conditions in all determinants compare to Indonesia and Thailand. Lessons learned from its development experiences could improve Vietnam's successful strategy with previous outbreaks to impact the current economic development. Keywords: COVID-19 Pandemic, Economic Growth, International Political Economic JEL : A10, A11, B27, F13, F21, F5, F52
Unemployment Hysteresis in Middle-Income Countries Boukraine, Wissem
Journal of Developing Economies Vol. 6 No. 1 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i1.22617

Abstract

Business cycles pave the way for asymmetry in the unemployment rate behavior with rapid increases during recessions and slight decreases in expansions. It, in turn, may raise the non-accelerating inflation rate of unemployment and the cost in terms of inflation of any demand stimulus policy. The recent jump in unemployment worldwide due to the COVID-19 pandemic and the government's stimulus package following it raises questions about the cost of such a decision. We use the smooth transition model (STR) to analyze unemployment dynamics on quarterly data over the last two decades for fifteen middle-income countries. Our results suggest the absence of hysteresis except for Bulgaria, Mexico, and Ukraine. Our policy recommendation for these countries is the necessity of labor market reforms, as hysteresis will considerably reduce any economic stimulus on unemployment. Keywords: Unemployment, Hysteresis, STR JEL: C10, J60

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