Scholarly Works - Economics

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https://hdl.handle.net/20.500.14576/30

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Open Access
The effect of halal brand awareness on purchase intention in Indonesia : the mediating role of attitude
(Cogent OA, 2023-02-02) Abdul Aziz Nugraha Pratama; Hamidi, M. Luthfi; Edi Cahyono
This research investigated the relationships between the awareness of halal-based products and services and people’s intention to purchase. Also, it explored behavioral attitude as a mediating variable in influencing purchase intention. Data was collected through an online survey with 162 validated respondents. The PLS-SEM method was applied to test four hypotheses connecting the relationship between brand, attitude, and intention variables. The research findings showed that all hypotheses were confirmed, including the mediating role of attitude. This means that halal industry players should respond to consumers shifting from conventional to halal lifestyle orientation, while the regulator requires to provide incentives for promoting a greater halal ecosystem. The originality of this research is that this study strengthened previous research on the role of consumers’ attitudes that positively affect the intention to purchase halal products and services. This study revealed that consumers expand their consumption of traditional halal products and services (food, Islamic banking, fashion) to lifestyle (shopping) and well-being (fitness and swimming pool).
Open Access
Response of fiscal efforts to oil price dynamics
(Elsevier, 2023-02-20) Attahir Babaji Abubakar; Mansur Muhammad; Samuel Mensah
This study investigates the response of Nigeria's government balance to oil price dynamics. The Linear and Non-Linear Autoregressive Distributed Lag models are employed for analysis. The findings of the study reveal that while the long run response of government balance to oil price dynamics is symmetric, the short run response is asymmetric. In the long run, an increase in oil price improves the government's fiscal position, signifying an increase in fiscal effort. Interestingly, while positive oil price shocks lead to a short run worsening of the government's fiscal position, indicating poor fiscal efforts, negative oil price shocks influence an improvement of government fiscal efforts. Further, although the operationalisation of fiscal rules worsens the government's fiscal position in the short run, it has a beneficial long run effect. These findings have far-reaching policy implications.
Open Access
The factors that influence earning response coefficient : in the context of indonesian capital market in year 2015-2018
(Lembaga Riset, Publikasi dan Konsultan JONHARIONO, 2023-04-16) Vincent Aurelio Benny; Dadang Muljawan; Herbert Hasudungan
Investing in a business that consistently generates profits is what every investor undoubtedly wants to do. Investors want to put their money into profitable businesses, without a doubt. The effective application of operations management and financial regulations has led to these high-quality results. When building an investment portfolio, investors should be far more knowledgeable of and devote attention to the quality of profits and internal control of the firm. With Corporate Governance serving as the moderation variable and earning response coefficient serving as the dependent variable, this empirical study aims to determine the relationship between Conservatism, which is a way of presenting numbers in financial statements, return on assets, asset turnover, and Ectivity Performance. In this study, manufacturing companies in the basic and chemical industries that have been registered on the National Stock Exchange of india (IDX) between 2015 and 2018 were examined using purposeful selection and panel data regression analysis. The main conclusions of this study were that asset turnover, return on assets, and Conservatism all significantly affect the earning response coefficient. Additionally, it was shown that the earning response coefficient is influenced by earnings quality, which is tempered by Corporate Governance.
Open Access
Rectifying the downsides pension fund with the critical analysis of triangle justice ecosystem : a comparative case study in Indonesia and Malaysia
(Springer Nature Switzerland, 2023-07-27) Fahmi Alamil Huda
The objective of this chapter is to redesign the Indonesian pension fund’s business model, management system, and new strategies to balance adequate profits, affordability, and sustainable programs. Consider the Malaysian pension system and adapt the INTERDAP application used by PT. Angkasa Pura II. Through this qualitative case study, we applied the foundations of the Triangle Sharia Justice Ecosystem (TSJE); Sharia, digitized the system, and supported green investment in the long run. By modeling the business strategy, facilitating the business model and supplier relationship management, and creating mutually beneficial management among stakeholders, the study found that Malaysia’s pension system has an investment purpose. Indonesia, on the other hand, provides pension loans only based on previously agreed cumulative contributions. Malaysia encourages people across the country to save on severance funds. The pension system is still managed conventionally. Malaysia requires a pension contribution of 23% of the employee’s base salary, while Indonesia requires only 3%. This will affect the contribution of pension funds to the GDP. Malaysia’s pension fund accounts for 60% of GDP. Besides, Indonesia is at only 6.03%. Another view is, to become a developed country, pension funds need to reach 60% of GDP by 2045 because 42% of the total supply of funds in the infrastructure sector comes from pension funds. The practical implications of this study are access to information, security, and transparency in the management of pension funds through a digital system supervised by the Sharia Regulator (BPS) and the Indonesian government’s efforts to realize that supports the green economy. This study integrates the foundations of the TSJE about pension funds management. The limitation of the research study is that more detailed studies and methods are needed to analyze this study. It is expected that this TSJE system will be applied further.
Open Access
Determinants of private consumption expenditure in Australia : ARDL study
(ZAIN Publications, 2023-08) Abdul Zahoor Ahmadi; Walid Qarar; Hasibullah Atiqi
This paper studies the relationship among non-public intake expenditure and independent variables that encompass GDP, population number, interest price, and inflation price in Australia at some point of the duration from 1960 to 2022using the Autoregressive disbursed Lag version (ARDL). The studies additionally ambitions to take a look at the impact of displacement among non-public intake spending and government consumption spending using a model (ARDL). The have a look at determined that there may be an advantageous and enormous dating between personal intake spending and each output and populace in the end. Ultimately, a 1% growth in GDP is related to a zero.8% boom in private consumption pending, and a 1% boom in populace is associated with a zero.3% increase in private consumption spending. However, there is an inverse and tremendous dating among private consumption spending and both interest rate and government consumer spending in the long run. Ultimately, a 1% boom in the interest rate is associated with a 0.2% lower in private consumption spending, and a 1% growth inside the inflation rate is related to a 0.1% lower in private consumption spending. Inside the quick term, there's a high-quality and substantial dating between private consumption spending and both output and population. Within the short term, a 1% increase in GDP is associated with a zero.6% growth in private consumer spending, and a 1% increase in population is associated with a 0.2% growth in private consumer spending. However, there is an inverse dating among private consumer spending and short-time period interest rate, within the quick term, a 1% increase within the interest price is related to a 0.1% decrease in private consumer spending. The findings of this study advise that the imperative financial institution can use financial coverage equipment order to persuade the intermediate objective of monetary policy and have an effect private consumer spending and aggregate demand. Taxes can also be used as one of the fiscal coverage gear to persuade disposable income which will change private client spending and combination demand.
Open Access
Stock market development in Nigeria : do institutional quality and fdi net inflow matters?
(ZAIN Publications, 2023-11) Muhammad, Mansur; Muhammad, Sani
This study examines the effect of institutional quality and FDI net inflow on the stock market development in Nigeria for the period spanning 1996 to 2018. Symmetric method through autoregressive distributed lag model is used for the estimation of the relationship and cointegration. Stock market development is proxy by the annual stock market capitalization, while institutional quality is measured by the average of the composite index covering six categories; control of corruption, government effectiveness, political stability, regulatory quality, rule of law and finally, voice and accountability. Bound test confirms the validity of linear of variables under investigation. We found sufficient and significant evidence, affirming the role of institutional quality on stock market development both in the long run and short run. Similarly, FDI net inflow matters for the development of the stock market in the long run but not significant as expected while in the short it exerts negative and significant impact on the stock market development. This implies that foreign investors in form of portfolio investment will retard the development of the stock market in the short run if not properly managed.
Open Access
The impact of inflation rate and interest rate on Islamic and conventional banking in Afghanistan
(ZAIN Publications, 2023-11) Nikzad, Tareq
Since the first bank was established in 1933, Afghanistan's banking sector has seen a number of variations but hasn't been able to grow to its full potential because of the civil war. The implementation of dual banks in Afghanistan is investigated in this study in relation to the effects of inflation and interest rates. This research took data from World Bank Data (WBD) over a period of nineteen years. For the banking sector, inflation, which is the general rise in prices of goods and services over time, presents considerable difficulties. The objectives of this research are to analyze the effect of inflation and interest rates on conventional and Islamic banks in Afghanistan, identify potential differences between these two banking models, and provide insights for policymakers and practitioners. A mixed-methods approach is used in the research to analyze quantitative data and qualitatively examine the unique difficulties that banks in Afghanistan's economic atmosphere encounter. The findings contribute to the understanding of the relationship between interest rate, inflation rate, and the performance of both banking systems in Afghanistan. The paper concludes with recommendations for policymakers and banking institutions to enhance the stability and growth of the banking sector in Afghanistan. Interest is described as "a prefixed rate for use or borrowing of money" from an Islamic perspective. This "prefixed rate," known in Islamic economics as "riba," has been described as "something undesirable." Furthermore, by using the time series regression data technique on the annual data from 2003 to 2021, this research examines the effect of CPI inflation rate and interest rate of Banking in Afghanistan.
Open Access
Sustainability disclosures and financial performance of Islamic banks in Indonesia
(Department of Islamic Economics, IP University with The Indonesian Association of Islamic Economist, 2023-12-27) Jajang; Ahmad Baehaqi; Erina Maulidha
Sustainability practices and disclosures of Islamic banking in Indonesia are still very low. Currently, the disclosure of sustainability reports has been required by the Financial Services Authority (OJK). This paper measures the level of sustainability disclosures (economic, social, and environmental) based on OJK Regulation No. 51/2017 and investigates its impact on the financial performance of Islamic banks in Indonesia. The study was conducted in Islamic banks during 2018-2020 with a total sample of 12 banks obtained through purposive sampling. The results show that there is no significant effect of the sustainability disclosure dimensions on ROA. On the other hand, there is a significant effect of the sustainability disclosure dimensions on ROE and EPS. These results encourage Islamic banks to consistently issue a sustainability report. In the long term, the sustainability disclosure is expected to have a positive impact on the growth of Islamic banks in Indonesia.
Open Access
Enhancing supply chain resilience through digital integration : a case study of Moroccan businesses
(ZAIN Publications, 2024-01) Fatih, Fatima Zahra; Junejo, Safiullah
This study examines Moroccan enterprises' digital transformation and supply chain resilience. To adapt to changing market situations, we examine digital integration attitudes and approaches. The results demonstrate that digital technologies are increasingly essential to corporate operations, responding strategically to market changes and strengthening supply chain resilience. This study offers a fresh perspective after the COVID-19 pandemic exposed global supply chain flaws. Digital technologies, remote supplier relationship management, and data security's rising importance in supply chain security are examined. Detailed supply contract analysis and supplier diversification are also critical. Health, safety, and operational continuity are stressed in this context, and effective staff management is essential to solving modern problems. Combining theoretical foundations with empirical investigation, this research examines digital integration and supply chain resilience. It advises Moroccan firms to enhance their defences against possible attacks. Digital transformation and strategic measures may help firms survive and thrive in today's dynamic business climate while maintaining a stable supply chain.
Open Access
Do household consumption and literacy rate impact the fluctuation of the unemployment in Indonesia?
(Universitas Ahmad Dahlan, 2024-01-22) Muhammad Ismail Sunni; M. Indre Wanof; Angga Kusuma Wijaya
This paper aims to investigate the linkage and explore what has determined the unemployment rate in Indonesia from 2000 to 2021 which include literacy rate, school enrolment, labour force participation and household and non-profit institutions serving households (NPISHs) as the main explanatory variables. To control factors of unemployment and avoid spurious or misleading results, other than FDI, we include other macroeconomics variables such inflation, trade and interest rate. This study deploys timeseries regression and Ordinary Least Square (OLS) as the regression technique to estimate the coefficients of the linear function that best fits the data. To assess the model's assumptions and diagnose any potential issues that may affect the model's reliability and validity, the author applied heteroscedasticity, normality, multicollinearity, and autocorrelation test. All data are attained from World Development Index (WDI). Overall, HNC is the only determinant significantly increase level of Indonesia unemployment. While the increase of FDI may exacerbate Indonesia’s unemployment rate, LFP plays significant role in reducing the unemployment rate in Indonesia. The contribution of this paper lies in providing a nuanced understanding of the specific determinants of unemployment, with a particular emphasis on the significant impact of NPISHs. Based on the findings, policymakers should think about making investments in NPISHs to spur growth in the economy while generating job opportunities.
Open Access
Nexus between digital economy, productivity and growth : evidence from Nigeria
(Formosa Publisher, 2024-01-29) Salisu Garba Abdullahi
This study investigated the role of the digital economy on the growth of the Nigerian economy. Quarterly data on the two indicators of the digital economy which include internet penetration and ICT and some other control variables were analyzed using the Autoregressive Distributed Lag Model (ARDL). In addition to that, the Bound test is employed to determine the long-run relationship among the variables. The findings showed that the digital economy indicators are negatively impacting the growth of GDP and productivity in Nigeria. The unfavorable result can be attributed to the dominance of the government in the ICT sector. Before the 2001 liberalization agenda, the sector was entirely owned and managed by the Nigerian Government through the Nigerian Telecommunications Limited (NITEL).
Open Access
The nexus between government spending and economic growth in Saudi Arabia
(ZAIN Publications, 2024-02) Jonas, Ajibu
This paper analyses the impact of government spending on economic growth in Saudi Arabia. A five variable of the Vector Error Correction model (VECM) is used to analyze the relationship between government spending, import, population, exchange rate, and economic growth (GDP). Data was obtained from the World Bank website from 1970 to 2022. Two of our variables were stationary at level alpha 5%, while the other three variables were not stationary at level alpha 5%. This makes us test them in the first difference where all the variables were stationary at alpha 5%. We also tested our lag length criteria, and we found out that the (*) were many in lag three (3). Furthermore, the results from the impulse response, variance decomposition, and five-year forecasting indicate that in the short run, government spending and imports have improved Saudi Arabia's economic growth. The results also indicate that there was no four-way Granger causality among the variables but just two-way. Our results for cointegration also indicate there was one cointegration result, which resulted in us using the VECM. The forecasting results indicate that the country's GDP also tends to decrease by one percent from 2023-205, and after that, it returns to its shock by increasing again by one percent from 2006 to 2008. (9% to 10%).
Open Access
Human capital for economic development : a study of education production performance (EPP) in Khairpur
(ZAIN Publications, 2024-02) Junejo, Safiullah; Ayaz, Maria
The analysis of education production performance involves evaluating the inputs of faculty, teachers, and students to determine the academic achievement of students. This study aims to estimate the education production performance of both state and private higher secondary schools in Khairpur and identify the factors that affect instructional outcomes in the region. Education is crucial for development, as a highquality education system is essential for increasing people's skills, knowledge, and abilities, ultimately contributing to the growth of human capital. In a developing country like Pakistan, where policymakers face challenges such as a rapidly growing population, low levels of education, and limited resources, improving educational efficiency is critical to achieving progress. A thorough understanding of the factors that contribute to instructional success is essential in this regard. To construct the model, a cross-sectional dataset was used, and a standard least squares method was employed with annual examination results as the output variable and school inputs, student characteristics, family background, and teacher characteristics as the input variables for both private and public schools. The results of the study indicate that student characteristics, teacher qualities, and family background, except for the mother's education, career, and income, have a statistically significant impact on students' academic performance. The findings of this study have significant policy implications for Khairpur and Pakistan as a whole. Improving educational outcomes will be critical in enhancing the human capital stock, which, in turn, is essential for economic growth and improving living standards. By understanding the factors that contribute to instructional success, policymakers can devise effective strategies to address the challenges faced by the education sector and improve overall educational efficiency
Open Access
The impact of fiscal policy on economic growth : fresh evidence from Malaysia
(ZAIN Publications, 2024-02) Haidari, Adila; Junejo, Safiullah
Many scholars have researched the connection between fiscal policy and economic growth and how fiscal policy can be a crucial factor for economic development and growth. Despite this, it still remains a critical debate amongst policymakers and scholars. Thus, this study fills the gap by analyzing the impact of fiscal policy on economic growth in Malaysia spanning 1990 to 2022. The secondary data from World Bank Indicators (WDI) is collected. This study examines the impact of fiscal policy (government expenditure) on Malaysia's economic growth by adding more macro factors such as unemployment, tax revenue, and inflation. This study employs the Autoregressive distributed lag (ARDL) model to examine the long-run correlation to meet this objective. Furthermore, various econometric models are employed, including the ARDL bound test and the error correction model (ECM), to check the relationship between the variables. Based on empirical results and findings, the study suggests that there is a strong relationship between GDP and expenditure, unemployment, tax revenue and inflation since the probability value is less than significant in the short-term relationship with constant and unrestricted constant form. Additionally, with the ARDL Model boundary test, government expenditure, unemployment, tax revenue, and inflation have a long-term relationship with GDP in Malaysia, where the F-statistic value is smaller than the lower boundary. Moreover, the Error correction method with restricted constant suggests a long-term link between the expenditure and GDP. Notwithstanding the results, fiscal policymakers must carefully evaluate the efficacy of government expenditure allocation to ensure that it is consistent with the longterm economic growth goals. The potential limitation of this study is its dependency on secondary data from the World Bank Indicators (WDI), which may not capture all relevant nuances of Malaysian fiscal policy and economic dynamics.
Open Access
Institutional quality and Islamic financial development
(Modern Finance Institute in cooperation with Poznan University of Economics and Business, 2024-02-08) Muhammad, Mansur; Baita, Abubakar Jamilu; Hussain, Tufail
The Islamic financial system has become an important source of financing for many Muslim and non-Muslim countries. Therefore, this paper examines the role of institutions in facilitating the development of Islamic financial institutions. The study covers the period 2013-2021 for a panel of 11 leading economies in Islamic finance and employs fixed effects with the Driscoll and Kraay (1998) estimator. The results show a positive impact of effective governance on the development of Islamic finance. However, regulatory quality has a significant negative impact on the development of Islamic finance. Thus, we argue for the improvement of critical institutions that include political, legal, governmental, and regulatory aspects.
Open Access
Navigating the digital wave : mapping the research trends of digital finance (fintech) through a bibliometric lens
(ZAIN Publications, 2024-03) Hamza, Ali; Saleh, Husny Gibreel Musa
In the wake of swift digitalization and technological progress, individuals worldwide have embraced the notion of digital finance. While academic literature has extensively explored various facets of financial digitalization, there remains a scarcity of research examining these services through a bibliometric lens. Thus, this study endeavours to provide a bibliometric analysis of adoption of digital finance, drawing insights from the Scopus database's literature review spanning from 2003 to 2023. The charts are directly extracted form scoups Analysis tab but for visualization VOSviewer software is used. The results highlight a dynamic and collaborative research environment with global impact, featuring diverse contributions from different countries and individuals in the evolving field of Financial Technology and Digital Money Publications. China has taken a lead with approximately 1400 publications, reflecting its substantial role in contributing to the field. However, recent collaborations, though fewer in number, have emerged from Pakistan and Malaysia, signifying diverse contributions .A significant portion of research, 20.1%, is categorized under Computer Science, showcasing the interdisciplinary nature of the field. "Sustainability Switzerland" stands out as a preeminent journal, housing 118 documents in the Scopus database, and is a prominent choice for collaboration among authors, alongside "Finance Research Letters. Asian educational institutions dominate the institutional landscape in terms of publication count, indicating a strong commitment to advancing research. Individual contributions are also notable, with "Rabbani" emerging as a foremost author, contributing 20 documents to the Scopus database.
Open Access
Monetary policy dynamics and economic growth an empirical analysis of Indonesia's economy using time-series data and error correction model (ECM)
(ZAIN Publications, 2024-03) Fazlullah Ihza Qaseem
This study investigates the relationship between monetary policy variables and GDP growth in Indonesia using time-series data from 1986 to 2021. Employing the Error Correction Model (ECM) framework, the research explores the presence of a long-run relationship among the variables and identifies significant monetary policy instruments that drive economic growth. The findings reveal a robust long-run relationship between monetary policy variables and GDP growth, indicating the sustained impact of monetary policy on Indonesia's economic performance. Specifically, the core finding highlights the significance of the inflation rate, exchange rate, and total reserves as influential monetary policy instruments driving growth in Indonesia. This finding helps policymakers better understanding about the relationship between monetary policy and economic development in the context of Indonesia by offering insightful information. By utilizing an extensive time-series dataset and employing the ECM methodology, this study contributes to the existing literature on the role of monetary policy in shaping economic growth, particularly in Indonesia.
Open Access
Measuring procyclicality behavior on Islamic and conventional banks in Indonesia
(Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta, 2024-04) Dimas Bagus Wiranatakusuma; Ecky Imamul Muttaqin
Research Originality: This study contributes to capturing credit cycle movements during the COVID-19 pandemic and compares sizes of credit and business cycles to promote banking stability. Research Objectives: This study attempts to examine banking behavior on amplitude and frequency indicators by focusing on the credit property of Islamic and conventional banks. Research Methods: This study utilizes ordinary least square regression and time series analysis on monthly data from 2014 to 2020 to examine the procyclical behaviour in both Islamic and conventional banking. The construction and measurement of generated cycles are achieved through the utilization of frequency-based filtering and turning point analysis. Empirical Results: This study unveiled that the size of an Islamic bank’s amplitude was higher than conventional bank’s amplitude. Meanwhile, the size of the frequency of Islamic banks had a longer frequency than conventional banks, given Islamic banks rely on real sector-based financing which has a longer period of economic expansion. Implications: It is also argued that conventional banks have a riskier leverage indicated by a higher percentage of amplitude. Thus, it is recommended to Indonesian banking sectors to promote the growth of Islamic banks to achieve financial stability. This research is significance in showing the Islamic banking’s contribution on stability given Indonesia is taking serious effort becoming the epicentrum of Islamic finance growth in the world.
Open Access
Determinants of bond market development in Nigeria
(Formosa Publisher, 2024-04-30) Baita, Abubakar Jamilu
Capital market is of paramount importance in financing the activities of public and private sectors in both developed and developing economies. Consequently, this research analyzed the long run equilibrium relationships between bond market development (BMD) and a set of fiscal, macroeconomic and financial variables in Nigeria using Granger causality test and Johansen cointegration model. The findings reveal the importance of macroeconomic and financial variables in facilitating the development of Nigeria’s bond market. The study recommended that policy makers should ensure macroeconomic stability and financial soundness in order to develop bond market in the country.
Open Access
Analyzing the determinants of trade balance : an empirical investigation of Indonesia's economic dynamics
(2024-05) Nyange, Asia Khamis; Jonas, Ajibu
The study investigates the determinants of Indonesia's trade balance focusing on five key factors: money supply, foreign direct investment, exchange rate, carbon dioxide emissions, and government expenditure. Utilizing secondary time-series data from 1990 to 2022 and employing vector error correction model analysis, the research reveals significant insights. In the short term, only the money supply notably influences trade balances, while the other factors show no significant impact. However, in the long term, foreign direct investment, exchange rate, carbon dioxide emissions, and government expenditure positively affect the trade balance, with the money supply displaying an insignificant impact. The study's conclusions offer policy suggestions to address these findings. These suggestions include putting policies in place to lower carbon emissions and encourage sustainable growth, making sure government funding for sustainable development initiatives is used effectively, luring foreign direct investment, keeping exchange rates stable, and being cautious when controlling the money supply to preserve price stability. The objective of these recommendations is to improve Indonesia's trade balance sustainability. However, the analysis admits its limitations in not accounting for all macroeconomic factors, such as GDP, interest rates, and industrial production, that affect trade balance. Notwithstanding these drawbacks, the study provides insightful information to help policymakers develop plans for enhancing the dynamics of Indonesia's trade balance.