3 Faculty of Economics and Business

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Browsing 3 Faculty of Economics and Business by Subject "ARDL"

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    Analyzing the impact of public health insurance claims and government health expenditure on Indonesia's economy
    (Universitas Islam Internasional Indonesia, 2024) Wafdah Layli Rizqiyah; Indra Gunawan; Herbert Wibert Victor Hasudungan
    This study contains various discussions related to the impact of government spending in the health sector, as well as the impact of public health insurance claim costs on economic growth in Indonesia during the period 2014 - 2023. Therefore, in conducting various analyses on short-term and long-term relationships related to these variables, an approach called Auto-Regressive Distributed Lag (ARDL) is needed. In addition, as a control variable applied to the urban population and the Consumer Price Index (CPI), this variable is used with the aim of separating the various influences of independent variables related to economic growth in Indonesia. The results show that public health insurance claims have a positive and significant impact on GDP per capita and Real GDP in the short and long run. This indicates that increased access to health services through BPJS Kesehatan contributes to increased labor productivity, which in turn boosts real economic growth. Government health expenditure does not show a significant effect on GDP per capita, either in the short or long run. This suggests that government health spending may not have been managed effectively to make a strong contribution to sustainable economic growth. This finding emphasizes the importance of improvements in the allocation and efficiency of health spending to support economic growth. Control variables such as urban population and CPI also play an important role in this analysis. Urbanization impact on GDP per capita is more variable, with potential negative impacts in the short term due to pressure on infrastructure and public services. Inflation, as measured by the CPI, has a significant impact in the short term on GDP per capita but the effect does not persist in the long term, highlighting the need for prudent inflation management to maintain economic stability. Overall, this study concludes that improving access and efficiency of health insurance claims through BPJS Kesehatan can be a key driver of economic growth in Indonesia, particularly through improving labor productivity and individual welfare. However, to achieve sustainable economic growth, more comprehensive policies are needed, including reforms in the management of government health spending, better management of urbanization, and effective inflation control. The findings provide important insights for policymakers in formulating more effective and sustainable economic strategies.
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    Leverage, capital adequacy, and financial stability in the fintech industry : evidence from Indonesia
    (Modern Finance Institute in cooperation with Poznan University of Economics and Business, 2024-07-14) Baita, Abubakar Jamilu; Diah Bardiah; Suhail; Basalma, Ebrahim Omar
    The paper examined the influence of leverage and capital adequacy on fintech's financial stability in Indonesia. We utilize both quantitative and qualitative methods. The findings showed that leverage significantly constrained the financial stability of the fintech industry in the short run. Contrarily, capital adequacy has no significant effect on financial stability. Specifically, the qualitative results indicated that a high liability-to-asset ratio depressed the financial stability of the fintech industry. However, the influence of the asset-to-equity ratio on financial stability depends on asset quality, liquidity, and riskiness. Furthermore, the respondents noted the insufficiency of capital requirements in the fintech industry. Thus, fintech firms should focus on asset quality, while regulators should tighten capital regulation.
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    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.