3 Faculty of Economics and Business

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

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    The determinates of carbon emission intensity on socio-economic indicators : a causal analysis in the ASEAN region
    (Universitas Islam Internasional Indonesia, 2023) Muhammad Ismail Sunni; Herbert Wilbert Victor Hasudungan; Fajar B. Hirawan
    The rapid economic growth experienced by the Association of Southeast Asian Nations (ASEAN) in recent decades has led to a significant increase in carbon emissions, exacerbating the global challenge of climate change. Despite the urgency of addressing this issue, there is a lack of comprehensive research examining the factors driving the rise in carbon emission intensity within the ASEAN region. As the world's third-largest emitter of greenhouse gases, it is imperative to understand the relationship between economic development, social development, technological development, and carbon emission intensity to inform effective policy development. This study aims to fill the research gap by investigating the determinants of carbon emission intensity in ASEAN and exploring the impact of economic development, social development, and technological development on this intensity. By utilizing quarterly panel data comprising 432 observations from 10 ASEAN countries spanning the period from 2010 to 2021, a fixed-effect model (FEM) is employed as the estimation approaches in EViews. Prior to estimation, the validity and reliability of the model are assessed through the Chow test, Hausman test, and Laggrange Multiplier test. Additionally, tests for multicollinearity and heteroscedasticity are conducted. The study reveals that among the examined variables, only foreign direct investment (FDI) from the economic development indicators does not exhibit a significant association with carbon emission intensity. Conversely, higher GDP, lower inflation rates, and limited technological development are found to be significantly linked to lower carbon emission intensity within the ASEAN region. Furthermore, two variables related to social development, namely the Human Development Index (HDI) and the GINI index, also do not demonstrate a significant relationship with carbon emission intensity. After applying the Granger causality test, the study reveals no significant mutual association between socioeconomic factors and carbon emission intensity. By addressing the critical research gap regarding the drivers of carbon emission intensity in ASEAN, this study has significant implications for policymakers and stakeholders. The findings provide valuable insights into the key factors influencing carbon emissions and offer evidence-based recommendations for the formulation of effective environmental policies.
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    The impact of digital infrastructure on the employment rate in ASEAN
    (Universitas Islam Internasional Indonesia, 2024) Shellvy Lukito; Dian Masyita; Rizky Wisnoentoro
    Neglecting the exponential expansion of digital infrastructure in ASEAN is impossible. This study investigates digital infrastructure's influence on the employment rate in ASEAN, where Singapore and Timor Leste are regarded as outliers. The variables that are being measured are as follows: fixed broadband subscriptions, fixed telephone subscriptions, internet usage, mobile cellular subscriptions, secondary school enrolment, GDP per employed person, inflation, GDP deflator, and employment to population ratio. The quantitative technique employed is panel regression data analysis, which is conducted using the Stata 17.0 application. this study employs the Heteroscedastic Panels Corrected Standard Errors (HPCSE) method to address the issue of heteroscedasticity in panel data. Additionally, the study utilizes the Feasible Generalized Least Squares (FGLS) approach in regression to obtain parameter estimates that are both efficient and consistent. This study reveals that Fixed broadband subscriptions positively affect the employment rate with a coefficient of 0.5211926 and a p-value of 0.000. Mobile cellular subscriptions also have a coefficient of 0.0359148 and a p-value of 0.064. However, GDP per person employed has a negative coefficient of -3.039084 and a p-value of 0.005. The findings of this study suggest that digital infrastructure is essential for developing job opportunities. Policies that prioritize the development of broadband and cellular access and consider the influence of productivity on the labor market can assist in developing strategies to increase work participation.
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    The impact of single window system in facilitating trade : evidence from ASEAN countries
    (Universitas Islam Internasional Indonesia, 2023) Andiyani Kurnia; Teguh Yudo Wicaksono; Dian Masyita
    This study aims to assess the impact of the Single Window System on facilitating trade processes in ASEAN member countries using panel data analysis. The Single Window System is an integrated platform that streamlines and harmonizes trade procedures by allowing traders to submit all required documents and data through a single electronic gateway. This research utilizes panel data from multiple ASEAN member countries over a specific time period to examine the effects of implementing the Single Window System on trade facilitation. The study employs a Fixed Effect model, shows that Single Window has a positive and significant impact toward Trade as well as the other determinant such as Trade in service GDP, and Population. Besides, Frontier Technology Readiness has significant negative impact. The findings of this research contribute to the understanding of the effectiveness of the Single Window System in enhancing trade processes within ASEAN member countries. It provides insights into the extent to which the implementation of this system has reduced trade barriers, improved efficiency and increased transparency in trade procedures. The results also shed light on potential variations in the impact of the Single Window System across different ASEAN member countries. The analysis will help identify best practices and policy recommendations for optimizing the implementation and utilization of the Single Window System to further enhance trade facilitation.
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    The impact of trade openness, tariff, and globalization on food security in promoting resilience against global crisis in the ASEAN region
    (Universitas Islam Internasional Indonesia, 2023) Fahmi Alamil Huda; Aimatul Yumna; Herbert Wilbert Victor Hasudungan
    In 2023, many crises hit the world due to heated geopolitical conditions resulting from the war in Russia and Ukraine; the world situation was fragmented because of competition between the USA and PRC blocs, economic recovery due to COVID- 19 has shaken again, and food inflation was soaring high. The leading cause of food insecurity in ASEAN, which consists of most developing countries, is the lack of distribution access due to the affordability of logistics and food supplies. Most investors shift their investment preferences from the primary sector to manufacturing due to the volatility and high risk of assets. In 2020, in Asia, there were 78.7 million toddlers who were stunted, with the second majority in Southeast Asia (27.40%). Although most of the ASEAN member countries are connected geographically, the market share of ASEAN member countries in world trade is only 8.8%, so intra-trade relations are considered not optimal enough. This study aims to analyze the effect of three different trade openness indicators (trade openness, tariffs, and globalization) on the food security of Southeast Asian people in 2000-2021. The method used in this research is panel data, which combines pool least squares (PLS) and fixed effect models (FEM) by developing Beck and Katz's two panels corrected standard errors (PCSE): cross-section weights and SUR. Trade openness significantly affects the two pillars of food security: stability and utilization, with U-shaped results. Ad-valorem tariffs are significant and positive for the two pillars of food security: availability and utilization. Increasing taxes in Southeast Asia can improve the average dietary energy supply's adequacy; however, this can also increase the prevalence of stunting in children under five. It happens because the availability of abundant food in terms of quantity differs from the quality and safety of its consumption. The increase in globalization from an economic, political, and social perspective in Southeast Asia is significant for the four pillars of food security; if globalization is increased, then this can positively impact reducing cases of stunting and malnutrition; on the other hand, increasing globalization has harmed food availability and stability. Increasing one policy has a different impact. In the first stage, policy improvements can positively impact a pillar of food security. However, after reaching a turning point, there is a possibility that the increased policy will harm the other pillars. Therefore, it is necessary to choose an integrative policy trade-off and be able to solve problems better. This study suggests several main policy implications, namely building a more assertive trade policy based on the WTO and food safety technical rules that comply with WHO rules, increasing intra-trade within the ASEAN group, maintaining food price stability, encouraging investment in agriculture, promoting governance reforms. and strengthen the regional food security system in terms of production consumption, and distribution. Support policies are also needed regarding solid prevention efforts against stunting and malnutrition and digitalization (Agritec 4.0), which supports food availability. In addition, this research also suggests that ASEAN can continue to increase domestic food production for resilience to the global crisis.
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    The nexus between income inequality and environmental degradation in ASEAN-6 countries during 1992–2015 from Islamic perspective
    (Department of Islamic Economics, IPB University with The Indonesian Association of Islamic Economict, 2024-06-28) Rininta Nurrachmi; Jarita Duasa; Muhammad Irwan Arifin; Rafia Afroz
    The purpose of the study is to examine the relationship between income inequality and environmental degradation in ASEAN-6 countries namely Indonesia, Malaysia, the Philippines, Thailand, Singapore, and Vietnam. It also provide analysis from the Islamic perspective based on result of the econometric regression. The study utilizes annual panel data from1992 until 2015 where the region suffered from high income distribution and environmental degradation. The analytical tool used in the study is Bias-Corrected Least Squared Dummy Variable (LSDVC), which is sufficient for small panel data. The methodological approach leads to two main findings. First, income inequality, measured by Gini coefficient, is contributing to environmental degradation (proxied by CO₂ emission and Natural Resources Depletion) in the short- and long-run term. Other explanatory variables namely GDP per capita and energy consumption, also impact significantly on environmental degradation level in the short- and long-term. From the findings, it is recommended that greater investment is required in addressing high level of income inequality and environmental issues. Instruments in Islam such as zakat and waqf provide solution to overcome issue of high income gap and environmental degradation in ASEAN-6 countries, moreover majority of Muslim population located in ASEAN countries. Hence, collaboration should be enhanced among the ASEAN-6 countries where wealth distribution, technology and knowledge sharing from high income countries to low and middle-income in ASEAN countries to mitigate the negative impact of high income inequality and environmental issue in the region.
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    Unraveling the impact of economic diversity on unemployment rates in ASEAN-6
    (Universitas Islam Internasional Indonesia, 2024) Muhamad Rizki Karim Amrulloh; Rima Prama Artha; Dionisius A. Narjoko
    Economic diversification is widely acknowledged as a crucial approach for promoting economic stability. Although the advantages of diversification are wellrecognized, its influence on unemployment rates, specifically concerning gender and age dynamics, has not been investigated within the context of the Association of Southeast Asian Nations (ASEAN). This study seeks to address this research gap by examining the influence of economic diversification, along with other factors including inflation, population, foreign direct investment (FDI), human capital, institutional quality, and the COVID-19 pandemic, on the unemployment rates in the ASEAN region. The estimation approach involves the use of a fixed effects model with Driscoll and Kraay standard errors, using panel data from six ASEAN countries covering the period from 2000 to 2022. Before estimating, the model's validity and reliability are evaluated using the Chow test, Hausman test, and Lagrange Multiplier test. Additionally, tests are performed to assess autocorrelation, heteroscedasticity, and multicollinearity. The study demonstrates a strong correlation between economic diversification and reduced unemployment rates in ASEAN, encompassing different types of unemployment. Furthermore, the analysis emphasizes that both institutional quality and population dynamics exert a substantial negative influence on unemployment rates. On the other hand, there is a positive correlation between inflation and unemployment rates, though it is not statistically significant. Meanwhile, foreign direct investment (FDI) and human capital show a non-significant negative correlation with unemployment rates. Additionally, the COVID-19 dummy variable indicates that countries experienced elevated levels of unemployment during the pandemic. These findings suggest that governments in ASEAN should prioritize economic diversification, institutional quality, and targeted support for women and youth to reduce unemployment.