Economics

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Open Access
A bibliometric analysis of sukuk using vosviewer in Indonesia with publish or perish (pop)
(Department of Islamic Economics, IPB University, 2024-06-27) Shellvy Lukito; Egi Arvian Firmansyah
The subject matter of sukuk has elicited increasing attention from both academic researchers and professionals within the industry. The employment of sukuk financing is effectively facilitating the progression of economic growth. The primary objective of this research endeavor is to integrate mapping analysis techniques with the utilization of VOSviewer software to conduct a comprehensive bibliometric analysis of scholarly literature pertaining to sukuk. The acquisition of research data is facilitated through the utilization of the Publish or Perish (PoP) application. The data collected has been derived from an examination of search outcomes pertaining to the keyword "sukuk" obtained from scholarly journals indexed by Google Scholar. A total of 997 articles, spanning the period from 2018 to 2022, have been identified in the present study. Based on the research findings, it has been observed that there has been a consistent upward trend in the number of studies conducted over the period 2018 to 2022. Islamic bonds, commonly referred to as sukuk, play a pivotal role in facilitating and propelling this expansion. The present study showcases the significance of bibliometric analysis in furnishing analytical data about occurrences. This study provides guidelines and serve as a valuable resource for researchers engaged in the exploration and identification of research themes.
Open Access
Advancing the understanding of behavioral intentions towards I-Fintech : a study on Indonesian millennials and gen z
(Universitas Islam Internasional Indonesia, 2023) Siti Nur Aisyah; Aimatul Yumna; M. Luthfi Hamidi
Islamic fintech is likewise a part of the digital development and Islamic teaching is concerning the historical development. It is such a completely new for Islamic economic world to implement the technology in a daily life. Such an aftershock of Islamic finance which has not been accepted well by society, Islamic fintech is approaching the Islamic lifestyle. Conventional fintech has been well-approved by the society since Indonesian has not been concerning the Islamic value instead of the religion they believe. This leads to the lack of intention of using 1-fintech services. The intention of using a product is sometimes affected by the lack of product awareness and literacy instead. This project of the study is ensured to explore whether the society has an intention to adopt Islamic fintech services. The focus of this study is taking place on millennials and Gen Z's group as this circle of society is currently the higher adoption of technology and financially active. The questionnaire was placed on the surveymonkey.com website and shared through random sampling method. Before disseminating the questionnaire publicly, the questionnaire was tested by the piloting project to examine whether the questionnaire was valid and reliable. There are 333 respondents besides those who had been involved in the piloting project. The study was tested by SEM-PLS. The results describe that the variables, digital financial literacy, planned behavior, acceptance model and use of technology, while the three variables significantly affect the intention to adopt except digital financial literacy. Planned behavior is the most powerful factor among others. The score of digital financial literacy is considerably high where the intention to adopt is lower than the I fintech adoption rate. Moreover, DFL score is depicted to explain the current literacy on the millennials and gen z. This study was overseen only in Indonesia, aiming on millennials and gen z Therefore, the results cannot be globalized to other countries and generations. However, this study presents the critical information regarding the digital financial literacy in Indonesia to achieve the fintech industry development. On this case, where the digital financial literacy does not significantly affect the adoption of I- fintech, it could be explained that I-fintech is supposed to be explored by the Islamic Digital Financial Literacy. To the best of the author knowledge, there has been no theory representing the Digital Islamic Financial Literacy. It is suggested that the next studies could increase the number of respondents. By this study, it is aimed to obtain the best representing results for the future research about digital financial literacy and expected to be one of the concerns of the practitioner/developer of I- fintech and policy maker to improve the related regulation of I-fintech.
Controlled Access
An analysis of renewable energy demand : a case study of selected Gulf Cooperation Council countries between 1990-2021
(Universitas Islam Internasional Indonesia, 2024) Herawi, Saeed; Rima Prama Artha; Herbert Wibert Victor Hasudungan
This thesis analyzesthe demand for renewable energy in the United Arab Emirates, Qatar, Kuwait, and Saudi Arabia from 1990 to 2021. This study investigates the impact of economic, environmental, and market factors, using panel cointegration test and panel data analysis within the renewable energy demand theory framework. These factors include Gross Domestic Product (GDP), Fossil Fuel Consumption (FFC), Carbon Dioxide Emissions (CO2), Oil Prices (OIL), and the Levelized Cost of Renewable Energy (LC) on Renewable Energy Consumption (REC) in these fossil fuel-dependent nations. The study's objective isto analyze both short-term and long-term relationships between these variables. The study reveals a strong positive correlation between Income (GDP) and Renewable Energy Consumption (REC) in the selected (GCC) countries. This suggests that economic growth is a significant driver of renewable energy demand in these nations. Additionally, the findings indicate that fluctuations in Oil Prices (OIL) substantially impact (REC), with higher prices stimulating increased adoption of renewable energy alternatives. Moreover, the Levelized Cost of Renewable Energy (LC) is a critical determinant of (REC), as lower (LC) values correspond to higher adoption rates. These results emphasize the importance of economic factors in the GCC's transition to a renewable energy-based economy. However, the study found no significant relationship between Fossil Fuel Consumption (FFC) and renewable energy demand, indicating that a decrease in fossil fuel usage does not necessarily drive the transition towards renewables. The dominance of fossil fuels in (GCC) countries, supported by availability, infrastructure, and economic advantages, hinders the shift to renewables. Additionally, (CO2) emissions did not affect Renewable Energy Consumption (REC) within the studied period. This is because consumer preferences and national investments need to be stronger to shift the market towards renewables in response to (CO2) emissions changes. In addition, current environmental policies may need to be stronger to significantly impact Renewable Energy Consumption (REC), as the focus has historically been on oil production and revenue. The study recommends policies to help the (GCC) transition to sustainable energy while promoting economic growth. Key strategies include increasing renewable energy investment, reducing reliance on fossil fuels through subsidy reforms and carbon taxes, encouraging renewable technology innovation, and implementing carbon pricing. Furthermore, dynamic pricing mechanisms should adjust renewable energy incentives in response to changes in Oil Prices (OIL), ensuring competitiveness and environmental sustainability.
Open Access
An Islamic economics perspective on the determinants of indebtedness as measured by debt-to-GDP ratio : a panel regression analysis of the data from certain OIC and non-OIC member countries
(Universitas Islam Internasional Indonesia, 2023) Yadgari, Mohammad Rashed; M. Luthfi Hamidi; Fajar B. Hirawan
This thesis aims to define common causes of indebtedness, differentiate within common causes of indebtedness, assess whether fiscal and monetary policies are on a sustainable path to control debt distress and levels, and lastly, evaluate whether the ethical foundation of Islamic economics and finance provide a better way of handling the phenomenon in terms of fiscal, monetary policies and speculative investments. To accomplish these objectives, data of specified countries are taken from the World Bank, IMF. and Central Banks in terms of Debt-to-GDP ratio as the dependent variable, and FDI (net inflows), Government revenue, Government Expenditure, Export, Stocks traded value (GDP), Interest rate, GDP growth, Inflation, and Import as independent variables from 1990 to 2021, 32 years and 12 cross sections, establishing 384 observations for the study, the method consists pre-estimation tests of endogeneity and heteroskedasticity to validate basic assumptions of Ordinary Least Square regression and main separated estimation of Pooled OLS group wise for OIC, non-OIC countries with the adjustments by Heteroskedasticity Linear Regression with maximum Likelihood option. The study found that all the variables except inflation are significantly impacting Debt-to-GDP ratio regardless of separated estimation, however, the difference is that interest rate and stocks traded have a negative and significant relationship with debt for OIC countries while positive nexus for non-OIC countries, FDI has a positive and significant relation with debt for OIC countries while adversely it decreases debt for non-OIC countries with negative nexus. Export and economic growth have a significant and negative relationship for both types of countries, while imports have a positive relationship with debt. Government revenue and expenditure have a significant and negative relationship with debt for OIC countries while positive nexus for non-OIC countries. This study fills the gap of a comparative group-wise study of the macroeconomic determinants of indebtedness while calibrating initial theories proposed by major economists addressing the relationship among mentioned variables and results imply that governments shall formulate efficient policies to lower interest rates, avoid & decrease speculative investments and unnecessary spendings, and maximize revenues to control the debt levels and ensure the ability to service their debt.
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.
Embargo
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.
Embargo
Analyzing the market conditions and long-term dynamics in the biodiesel industry
(Taylor & Francis, 2024-07-02) Muhammad, Mansur; Herbert Wibert Victor Hasudungan
The Indonesian energy industry is working towards achieving net zero emissions by reducing energy composition between renewables and non-renewables. Based on this background, this study investigates the biodiesel market conditions and its long-term sustainability using monthly data from January 2014 to October 2023. The study applies the 3SLS, Johansen and bound test approach to cointegration for estimations. Findings from the study show that demand for biodiesel in Indonesia is price inelastic, which implies that the response of demand on small price changes is high due to the availability of substitute products. The Walrasian coefficient is negative and statistically significant, suggesting a partial disequilibrium in the biodiesel market. Furthermore, the blending mandatory of biodiesel is found to be sustainable in the long run as shown by the bound f-statistics and Johansens’ trace statistics. The increasing prices of crude palm oil, catalysts, methanol, and glycerin have a devastating effect on biodiesel production. Exchange rate depreciation is also a negative function of biodiesel production. These findings are crucial for industry stakeholders and policymakers to make informed decisions about resource allocation, cost management, and strategies to enhance the sustainability and efficiency of biodiesel production processes.
Open Access
Corruption, women participation, and economic development : evidence from G20
(Universitas Islam Internasional Indonesia, 2023) Ananda Olga Ulima; Fajar B. Hirawan; Teguh Yudo Wicaksono
Women's participation in the public sphere has been increasingly prominent and impactful, resonating across various macro and microeconomic domains. Gender- Corruption issues have been recently become the focus in empirical findings of scholars. This study aims to examine the effect of women participation in public space on corruption in G20 member countries between year 1995-2021, based on panel data analysis. Under the most relaxed assumption of the model i.e., fixed effect, the result concludes that countries with high inequality is associated by higher corruption level. However, a good governance indicated from their rule of law has significant impact on reducing the level of corruption, which indicated that the policies' role and commitment set by the government institution are essential especially for those of G20's developing countries. Furthermore, the impact of women participation in parliament does not necessarily reduce corruption. Both female labour force participation and senior-middle management have a positive effect to eradicate corruption level. While under fixed effect model, the impact of these variables dissipates, suggesting that country-specific characteristics may explain the variation in the corruption level. This study suggests that promoting women participation must be followed by institutions, norms, and culture to strengthen the effectiveness of law. Moreover, next agenda of G20's board meeting can be focusing on tracking the progress of Anti-Corruption Working Group because there is still gap between developed and developing countries in terms of corruption eradication policy to gain sustainable economic development.
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
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
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
Do macroeconomic factors influence household consumption expenditure in the Gambia? ARDL-error correction regression approach
(Eastasouth Institute, 2024-06-28) Jallow, Mamadou Salieu; Hamadou, Issa
Consumption constitutes a larger part of GDP and contributes immensely in enhancing economic growth and development of a country. This study examines the influence of macroeconomic factors on household consumption expenditure in the Gambia. To achieve our objective, we employ ARDL estimation method with Bounds tests to analyze our study using secondary times series data collected from World Bank’s World Development Indicators database from 2000 to 2020. The findings reveal that GDP, inflation, direct credit to private sector, remittances and population all have significant effect on household consumption expenditure in the short run because their p values are less than 0.05 at 5% level of significance. For the long run effect, the CointEq (-1)* is negative and statistically significant. It means that the short run is adjusted with high speed in the run approximatively 108%. Therefore, GDP, inflation, direct credit to private sector, inflation, remittances and population are all significantly affecting household consumption in the long run. Thus, the study recommends that Government of the Gambia to use a mix macroeconomic policy method to stimulate and increase household consumption expenditure in order to help in achieving economic growth and development. The study further recommends future researchers to include other macroeconomic variables like unemployment and interest rate.
Open Access
Drivers of halal certification value chain : PLS-SEM approach
(Program Studi Ekonomi Syari'ah, Fakultas Agama Islam, Universitas Siliwangi, 2024-06) Shellvy Lukito
The growth of micro, small, and medium-sized enterprises (MSMEs) in Depok City is very promising, but many MSMEs in the city do not yet view halal certification as a matter of business ethics. This study intends to identify the factors that impede the implementation of the value chain for halal certification in Depok City in order to better understand how to improve the halal certification process for micro, small, and medium-sized enterprises (MSMEs) in Depok city. This study employs a mixed-methods, case-study research design. Using 102 questionnaires and in-depth interviews, researchers gathered information for this study. The results of this research are Government, Identity, and Product Originality are Significant in Relation to Halal Awareness. Thus, the government should increase the quota for halal certificates again, aggressively spread halal certification information, and strengthen its readiness to implement it.
Open Access
Economic freedom and environmental performance : the impact of government size, legal system, and monetary stability on greenhouse gas emissions
(Universitas Islam Internasional Indonesia, 2024) Neng Zulfa Azhar; Dian Masyita; Teguh Yudo Wicaksono
This study aims to analyze the relationship between economic freedom and environmental performance specifically measured by per capita GHG emissions from 2010-2020 for OECD countries as well as non-OECD countries using fixed effects panel data regression. The results show that in OECD countries smaller government size has a significant and positive effect on GHG emissions, while in non-OECD countries, although there is a positive effect, it is not statistically significant. The legal system and property rights have a significant and negative effect in OECD countries, but in non-OECD countries, the impact is negative but lacks statistical significance. Additionally, the higher sound money in OECD countries is associated with a negative effect on GHG emissions, whereas in non-OECD countries, it has a positive effect and not significant. The EKC hypothesis is confirmed and significant in OECD countries indicating the existence of an inverted u-shaped link between GDP per capita and GHG emissions, while in non-OECD countries only the relationship is detected but not significant. Technological advancement is equally significant in increasing emissions in both OECD and non-OECD countries, as well as the influence of urbanization is equally influential in reducing emissions in both OECD and non-OECD countries. As for trade, while it has a positive effect in the nonOECD, it has a negative effect in the OECD. This research provides policy implications related to the role of government in mitigating the adverse impact of climate change and improving environmental performance through reducing emissions, one of which is through subsidy and tax regulations as well as strengthening the legal system and maintaining economic stability without sacrificing the environment in the observed countries.
Embargo
The effect of the zakat empowerment program on youth farmers’ participation : a case study of desa tani program by Dompet Dhuafa
(Universitas Islam Internasional Indonesia, 2024) Fazlullah Ihza Qaseem
The declining interest of young people in agriculture not only threatens the sustainability of the agricultural sector but also endangers the livelihoods of farming communities in Indonesia. This research examines the effect of the Zakat Empowerment Program, specifically the Desa Tani Program by Dompet Dhuafa, on the participation of youth farmers in the agricultural sector. This research uses a mixed methods approach, combining quantitative surveys with qualitative interviews and document analysis. The quantitative analysis uses the Mann-Whitney U test to compare the perceptions and outcomes of youth farmers who participated in the program with those who did not. The qualitative analysis involves thematic analysis of interviews with youth farmers from both groups, program administrators, and community leaders to gain deeper insights into the effect of the program. In addition, the Analytic Network Process (ANP) is used to assess the relative importance of various program interventions in attracting youth farmers. The findings indicate that the Desa Tani Program has benefited youth farmers’ participation in agriculture. Program participants showed higher intentions to enter agriculture, increased access to resources such as land, finance and technology, also higher incomes compared to non-participants. The qualitative analysis highlights how Dompet Dhuafa helps youth farmers by providing motivation, resource training, and creating a supportive community environment. Also, the ANP analysis identified strengthening market linkages and local institution as important interventions for Dompet Dhuafa to attract youth farmers. Based on these findings, this research offers recommendations to Dompet Dhuafa and other zakat management institutions to improve the effectiveness of their empowerment programs. These recommendations include strengthening market linkages, increasing access to resources, addressing social and cultural barriers, leveraging technology and innovation, and establishing a robust monitoring and evaluation system. The research concludes that the Desa Tani Program serves as a model for encouraging youth participation in agriculture and sustainable rural development through zakat-based initiatives.
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.
Embargo
Evaluating the impact of islamic banking sustainability practices on financial performance
(Universitas Islam Internasional Indonesia, 2024) Basalma, Ebrahim Omar Obaid; Hamidi, M. Luthfi; Aimatul Yumna
This research aims to examine the sustainability practices of Islamic banking, their alignment with SDGs, and their effects on financial performance in GCC, Malaysian, and Indonesian contexts where these three markets occupy an important place in the Islamic finance business. Based on stakeholder engagement, legitimacy, good management, and beyond triple bottom line theories, the study uses a qualitative approach both through focused content analyses of firms’ financial & sustainability reports to develop and measure ICSP disclosure. For a quantitative approach the use of regression analysis of the panel data, the results demonstrate that ICSP has a significant and positive association with financial performance, as measured by ROE and ROA; and it enhances economic/environmental aspects of ICSP. However, the analysis of the social component reveals an insignificant value, which presupposes the improvement of communications and specific social activities. In terms of the study’s practical implications, this research enriches the conversation on sustainability and finance with findings that could be useful for tactical planning from the perspective of policymakers, regulators, and practitioners in the Islamic finance sector while also showing how the integration of Islamic banking practices and the implementation of sustainability practices can work in harmony for both financial sustainability and the generation of positive social and environmental impact.
Open Access
Examining the economic and non-economic fators on tax revenue in Indonesia
(Universitas Islam Internasional Indonesia, 2023) Adinda Rachmawati; Fajar B. Hirawan; Dian Masyita
Taxes are sometimes undermined by limitations on tax revenue measurement, despite the widespread consensus that taxes are typically a good policy instrument for evaluating the macroeconomic impact of the country's different tax policies. According to the Ministry of Finance, Indonesia's tax ratio has experienced volatile fluctuations over the past five years, and it is the third lowest of all ASEAN countries. This phenomenon can negatively impact tax revenue if not appropriately addressed by the government. This study considers various economic and non-economic indicators to assess the tax revenue. Inflation and unemployment are analyzed economically, while non-economic factors are trust and tax education. Investigating the relationship between these independent variables and tax revenue employs Panel Data Regression. The data utilized in this study were from the Directorate General of Taxes and the Central Bureau of Statistics (Badan Pusat Statistik/BPS) from 2015 to 2022. The analysis encompasses 34 provinces within Indonesia. The results of the Panel Data Regression indicate that inflation, tax education, and trust exhibit significant positive effects on tax revenue. In contrast, unemployment has an inverse impact on tax revenue. These findings offer valuable insights and recommendations to the government. The government should take a more proactive stance in managing inflation rates and addressing tax education. Tax revenue can be improved by effectively controlling one or more variables, thereby increasing tax revenue.
Embargo
Examining the regional economic integration : an analysis of cross border trade among ASEAN, China, and India
(Universitas Islam Internasional Indonesia, 2024) Abbassy, Sadia; Hamidi, M. Luthfi; Fajar B. Hirawan
Regional economic integration has been studied since the late 20th century, when global markets became freer. ASEAN, China, and India are key players in the current political, economic, and infrastructural scene. These regions have had economic development, but globalization has brought geopolitical difficulties, regulatory hurdles, infrastructural issues, trade patterns, trade policies, environmental issues, and social issues. This extensive study examines the many factors affecting economic integration in various regions. Using quantitative gravity model with Panel Data analysis over time period of 1999 to 2023, and empirical literature studies to analyse trade flows, trade policies, and the role of international trade organization on regional economic integration. Trade statistics, FDI flows, economic indicators, literature reviews, case studies, and data analysis are used to understand the contextual elements affecting regional economic integration and crossborder trade. Engagement with stakeholders improves data accuracy and policy direction. Cross-border trade and important players' roles are examined to assess multi-regional integration and economic growth, as well as the obstacles and design an innovative complete policy for the coming economic size. Whether bilateral or multinational, free trade agreements strengthen long-term cooperation over competition. ASEAN, China, and India have great economic and strategic potential, according to this analysis. ASEAN's middle-class population is expected to quadruple to 630 million, whereas China and India represent 2.87 billion people. The region could become the fourth-largest economy by 2030 due to its strength. Thus, regional economic integration increases trade volume and reduces geopolitical tensions, promoting mutual understanding and advantageous trading patterns. The findings provide crucial insights for governments, companies, and researchers managing regional economic interconnectivity.
Embargo
Factors affecting the human development status of muslim countries
(Universitas Islam Internasional Indonesia, 2024) Emil Haraki
This study analyses the relationship between human development and two types of factors: internal and external. Internal factors include economic inequality, political instability, social capital, knowledge creation, and natural resources. The external factor is colonization. The Organization of Islamic Cooperation is the second largest organization after the United Nations, consisting of 57 Muslim countries, but it is underdeveloped compared to other countries. This study comprehensively analyses Muslim countries' economic, political, social, educational, natural resource, and colonization legacies. This is because Europe colonized 44 out of 57 Muslim countries. This study uses a data panel model, consisting of 51 Muslim countries with 14 years from 2007 to 2020. To analyze the effect of independent variables on the dependent using the Common Effect Model (CEM), Fixed Effect Model (FEM), and Random Effect Model (REM). However, due to heteroscedasticity in the data, REM is the best model to use. The results show that economic inequality and political instability have a negative effect, knowledge creation and natural resources have a positive effect, but social capital does not have a significant effect. Colonized Muslim countries have lower human development than those that have never been colonized. It is concluded that what affects the underdevelopment of Muslim countries is high economic inequality and political instability, and colonization has a long-term impact on Muslim countries.