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Item Embargo The role of zakat empowerment program in transforming the unbanked farmer : case study of BSI village program in Rejo Asri, Central Lampung(Universitas Islam Internasional Indonesia, 2024) Citra Widuri; Teguh Yudo Wicaksono; Indra GunawanThe exact processes, tactics, and results of the BSI Village Program are the focus of this study. It aims to identify the elements that contribute to the transformation of unbanked people into active bankable persons within the role of zakat empowerment program by performing a thorough case study. The research focuses on the intervention of BSI Village Program, a community development initiative implemented in Rejo Asri village, Lampung Tengah, Sumatra, Indonesia from 2019 to 2022. The particular BSI Village program was a special situation to empower 100 poor families by the use of zakat funds in community development activities. The research employs a mixed-methods approach, combining qualitative and quantitative data collection methods. The qualitative data were collected through focus group discussion (FGD), interviews, and document analysis, while the quantitative data were collected through a survey of the beneficiaries and experts. The survey involved 78 accessible beneficiaries and 10 experts. The perception survey results were analyzed by a cross regression to measure the influence of zakat empowering program on productivity, financial literacy and financial inclusion. System expert’s rating survey were conducted with two consecutive sequences of Interpretive Structural Modelling (ISM) and Analytical Hierarchy Process (AHP) to define the exact process of BSI Village program and how might alternative strategy can be used. The findings reveal that the BSI Village Program has raised the beneficiaries from poverty line by year 2022. The zakat empowering program was perceived as influential to productivity, financial literacy and financial inclusion of the beneficiaries. BSI Village program can be defined into top five elemental process according to ISM analysis. In the context of retrospective goal, the AHP result the transformation of the unbanked people into active bankable person in the agricultural/farming sector can be achieved by mostly productive intervention without exit strategy (closed loop). The research concluded that BSI Village program is influential to the transformation of the unbanked farmer into active bankable individuals in Rejo Asri, Lampung Tengah with the role of zakat empowerment program in the process.Item Open Access The dynamic interrelationships of CO2 emissions and renewable energy consumption on economic growth in G20 countries : a panel VAR approach(Universitas Islam Internasional Indonesia, 2024) Joko Susilo; Indra Gunawan; Aimatul YumnaThe interrelationship between CO2 emissions, renewable energy consumption, and economic growth is comprehensive, especially for the G20 countries, which contribute to huge global C02 emissions and the world economy. On the other hand, we require a deeper comprehension to formulate policies that harmonize economic expansion with sustainable development. This study will analyze the dynamic interrelationship between CO2 emissions and renewable energy consumption on economic growth in G20 countries. It employs the Panel Vector Autoregression (VAR) approach, covers a period from 1990 to 2022, and involves several fundamental stages. These include the unit roots test to see if the data is statistically sound, the cointegration test to see how the variables have changed over time, and the impulse response function test and variance decomposition to see how shocks to one variable affect other variables. The study's findings show a relationship among CO2 emissions, renewable energy consumption, and economic growth. The data indicate that CO2 emissions have a favourable immediate impact in the short term, resulting in higher GDP and greater economic activity, than C0 emissions and GDP are negative in the long term. Furthermore, we confirm that the short-term relationship between renewable energy consumption and GDP is positive; in contrast, using renewable energy sources does not positively impact economic expansion in the long run. Therefore, G20 countries need to take action to formulate renewable energy policies for economic growth to achieve sustainable development and reduce CO2 emissions while promoting economic growth, whether short-term or long-term.Item Embargo The impact of digital infrastructure on the employment rate in ASEAN(Universitas Islam Internasional Indonesia, 2024) Shellvy Lukito; Dian Masyita; Rizky WisnoentoroNeglecting 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.Item Controlled Access Natural shocks, economic risks, health and social risks impact on food security in Indonesia(Universitas Islam Internasional Indonesia, 2024) Melani Sukma Yuridis; Rizky Wisnoentoro; Rima Prama ArthaThis study aims to elucidate the evolution of food security in Indonesia from 2017 to 2022 and to ascertain the impact of natural shocks (meteorological, hydrological, geophysical, climatological hazards), economic risks (inflation, GDP per capita, trade, and savings), as well as health risks and social risks (biological hazards) on food security during this period. In order to achieve the aforementioned objectives, this study employs descriptive analysis and panel data regression techniques. It is regrettable that the results demonstrate that only La Niña and El Niño, in addition to trade, exert a considerable influence on food security. As extreme climate phenomena, La Niña and El Niño exert a considerable influence on rainfall and temperature patterns, which in turn impact food production and availability. The results indicate that increased trade can help reduce food insecurity by redirecting surpluses from production areas to less well-off areas. The variables representing disasters, including natural shocks (meteorological, hydrological, geophysical, climatological) as well as health and social risks (biological hazards), do not exert a significant effect. This is due to the fact that the model may be unable to adequately capture the specific conditions of the number of disaster events, which can vary considerably depending on the type of disaster or the region in question. Furthermore, the economic variables of inflation, GDP per capita, and savings have no significant impact, as the model has been unable to adequately capture the fluctuating economic conditions of Indonesia during the data year under study.Item 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 HasudunganThis 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.Item Embargo The impact of tourism development on CO2 emissions : evidence from ASEAN economies(Universitas Islam Internasional Indonesia, 2024) Arif Rahman; Rizky Wisnoentoro; Dionisius Ardiyanto NarjokoFor several decades, the tourism sector has played a pivotal role in driving economic growth across ASEAN economies. However, the sector now faces significant challenges due to its vulnerability to climate change. This study investigates the correlation between the growth of the tourism industry and CO2 emissions in ASEAN countries from 2010 to 2019. Utilizing a random effects model, we analyse the impact of tourism on CO2 emissions, a key contributor to climate change. The results indicate that sustainable tourism practices, such as ecotourism, sustainable tourism and cultural tourism, can significantly reduce CO2 emissions by promoting biodiversity and preserving natural beauty. Furthermore, the study finds a positive correlation between real GDP per capita, energy intensity, and carbon emissions. The regression results confirm that international tourists prefer less-polluting destinations with efficient infrastructure, indicating a strong attraction to environmentally friendly travel options in ASEAN economies. This preference has significant implications for sustainable tourism development in ASEAN economies. Policy recommendations include pursuing sustainable, eco-friendly tourism through comprehensive and integrated sustainable tourism policies. These policies should focus on maintaining environmental quality, promoting green infrastructure, adopting clean technologies, and preserving forests to attract foreign tourists while minimizing environmental impact. Ultimately, integrated sustainable tourism policies will position ASEAN as a leading sustainable and eco-friendly destination, fostering both economic growth and environmental stewardship. By implementing these recommendations, ASEAN countries can balance economic development with environmental sustainability, contributing to the global effort against climate change.Item Embargo The impact of ESG implementation on financial performance : a case study of Indonesia stock market(Universitas Islam Internasional Indonesia, 2024) Dio Darmawan; Fajar B. Hirawan; Dionisius Ardiyanto NarjokoThis Study examines whether there is a relationship among companies between disclosure of environmental, social, and governance (ESG), operational performance (ROA), financial performance (ROE), market performance (Tobin’s Q), and market value (PER). And if these relationships are positive, negative, or simply neutral. This study aims to assess the influence of Environmental, Social, and Governance (ESG) implementation in Indonesia, comparing it to the situations in Japan and South Korea. It will consider the discrepancies in results found in previous studies conducted in other countries. Panel regression analysis was used to examine the study hypothesis. The study sample from companies listed on the Jakarta Composite Index with a total sample of 87 companies or 696 observations for the period 2015 to 2022 is used. During the given observation period, the sample data from Japan, as reported on the Nikkei 225 Index, consisted of 221 firms, totaling 1768 during the observation time. Similarly, South Korea, as listed on the Kospi Index, has a sample size of 294 companies, totaling 2352 throughout the observation period. The analysis indicates that the introduction of Environmental, Social, and Governance (ESG) practices in Indonesia has a significant negative impact on market performance, particularly measured by Tobin's Q. ESG implementation has no significant impact on other variables. The comparison of countries shows vary. The implementation of Environmental, Social, and Governance (ESG) practices in Japan has a significant negative influence on Return on Assets (ROA) and Tobin's Q. Meanwhile, South Korea has a negative relationship with market value as measured by PER.Item Embargo Understanding the factors driving product searches : an analysis using panel data(Universitas Islam Internasional Indonesia, 2024) Pradanti Nolo Wigati; Fajar B. Hirawan; Rima Prama ArthaThis study examines the factors that influence consumer product search behavior on e-commerce platforms, specifically focusing on the leading marketplaces in Indonesia, namely Shopee, Tokopedia, and Lazada using a panel data approach. This research analyzes the impact of organic and paid search strategies on organic traffic, which is an important driver for e-commerce performance. Utilizing data from 2019 to 2022, obtained from SEMrush, this study explores the effects of organic keywords, organic traffic cost, paid keywords, and paid traffic cost on the organic traffic of these platforms. In addition, the study also included dummy variables to assess the influence of the COVID-19 pandemic and peak seasons on consumer search behavior. The findings reveal that organic factors, especially organic keywords and traffic costs, significantly increase organic traffic, highlighting the importance of SEO (Search Engine Optimization) in e-commerce strategies. In contrast, paid search strategies show a complex relationship with organic traffic, with paid keywords negatively impacting organic traffic, while paid traffic costs show a more nuanced effect. The COVID-19 era and peak season were found to significantly alter search behavior, with the pandemic driving an important shift towards online shopping, thus intensifying competition in organic search. Economically, the results underscore the critical role of digital marketing in shaping consumer behavior and the broader implications for market efficiency in fast-growing Indonesia.Item Open Access Financial policy and socio-economic dimension on co2 emissions : revisiting the G20 countries(Universitas Islam Internasional Indonesia, 2024) Andi Dzulfahmi Imran Hamzah; Teguh Yudo Wicaksono; Aimatul YumnaThe issue of climate change, driven by high concentrations of CO2 emissions in the atmosphere, has garnered global attention. Consequently, the Paris Agreement represents a commitment by nations worldwide to address climate change by agreeing to limit the rise in global surface temperature to below 2°C, and ideally below 1.5°C, by 2050. This necessitates a transition to a greener economy, which is hindered by significant funding challenges, particularly for renewable energy financing and the transfer of environmentally friendly technology. Additionally, socio-economic factors must be considered, as population growth and urbanization increase demand in the energy and infrastructure sectors. This study aims to examine the effects of climate-related financial policy through climate-related financial policy index (CRFPI) and socio-economic factors on CO2 emissions in G20 countries from 2000 to 2020. Utilizing a panel regression random effects model, the impact of exogenous variables on CO2 emissions is found to be varied. CRFPI significantly reduces CO2 emissions, as does financial development. The Environmental Kuznets Curve (EKC) hypothesis is validated, showing that in the early stages, GDP positively affects CO2 emissions; however, as GDP growth reaches a turning point, economic growth negatively impacts CO2 emissions in the long term, indicating that G20 countries are predominantly characterized by progressive economic growth. Empirical evidence, particularly regarding socio-economic factors, presents diverse results. Renewable energy consumption leads to the most substantial reduction in CO2 emissions, while the response of CO2 emissions to FDI inflows shows a positive trend, suggesting that investment flows need better alignment with environmental sustainability goals. Finally, trade openness, urbanization, population, and technology patents do not show significant impacts. Despite the dynamic nature of empirical evidence, CRFPI, through various instruments such as green prudential policy, green financial principles, green investment and credit allocation, green bonds, and other disclosure requirements, can serve as alternative financing mechanisms to achieve net-zero emissions targets.Item Embargo The relationship between Islamic Financial Literacy (IFL), Halal Brand Awareness (HBA) in customer decisionmaking to choosing Islamic bank : a SEM-PLS study(Universitas Islam Internasional Indonesia, 2024) Diah Bardiah; Dian Masyita; Indra GunawanThe study reveals that the measurement model meets the required validity and reliability criteria, with all indicators showing satisfactory external loadings and AVE values. The structural model indicated a significant relationship between latent variables. The R Square value shows moderate to high explanatory power, and the SRMR value of 0.06 indicates suitable model fit, with a Goodness of Fit (GoF) Index of 0.662 categorizing the model fit as high. Using the SmartPLS software program, PLS-SEM analysis evaluates the outer and inner models. Assessment of measurement models emphasized the validity and reliability of indicators on measures such as outer loading, Cronbach's Alpha, Composite Reliability, AVE, and measures of discriminant validity, including the Fornell-Larcker criterion and cross-loading. Structural model estimation tests hypothesis testing, effect size, and predictive relevance using R Square, Q Square, SRMR, and PLS Predict measures. By using online survey data distributed to 1,027 respondents in 34 provinces in Indonesia, this study examines the application of PLSSEM to explore the relationship between latent variables in the Islamic Financial Literacy (IFL) framework and Halal Brand Awareness (HBA). The influence of these variables on consumer decision-making when choosing Sharia banking products and services is also explored. In conclusion, this research provides empirical evidence supporting the clarity of the PLS-SEM approach in examining the factors influencing consumer behavior in Islamic finance.Item 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. HirawanRegional 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.Item Embargo The impact of fish production, government policy, climate change, and marine biodiversity as blue economy factors on food security : a panel data analysis(Universitas Islam Internasional Indonesia, 2024) Azzam Robbani; Dionisius Ardiyanto Narjoko; Herbert Wibert Victor HasudunganThis study explores the intersection between the blue economy and global food security, focusing on twelve Asia-Pacific countries from 2015 to 2021. As the blue economy becomes increasingly vital in sustainable development, particularly in regions reliant on marine resources, this research aims to quantitatively assess how key blue economy factors—such as fish production, government policies, marine biodiversity, and climate change—affect food security outcomes. Using a robust dataset sourced from reputable international organizations like the Food and Agriculture Organization (FAO) and the World Bank, the study applies panel data analysis using the Fixed Effects Model (FEM) based on the Hausman test, which confirmed FEM as the most appropriate model to account for country-specific characteristics and unobserved heterogeneity. Diagnostic checks for normality, heteroscedasticity, autocorrelation, and multicollinearity were conducted to ensure the robustness of the regression models. The findings reveal that climate change exerts a statistically significant and negative impact on food security, underscoring the vulnerability of food systems to environmental variability, particularly in regions where agriculture and fisheries depend heavily on natural rainfall and stable climatic conditions. Conversely, other blue economy factors—fish production, government policies, and marine biodiversity—do not show a significant direct influence on food security within the scope of this study. This suggests that while these areas hold potential, they may require more targeted and effective policy interventions to enhance their contributions to food security. The study emphasizes the need for policy recommendations that include the promotion of sustainable aquaculture and fisheries management, climate change mitigation strategies, and the development of comprehensive regulatory frameworks. Additionally, integrating urban planning into food security strategies and engaging local communities in the implementation of Marine Protected Areas (MPAs) are crucial for conserving marine biodiversity and supporting food security. The research also highlights the importance of diversifying blue economy activities to better integrate them into the broader economic system, thereby enhancing their contribution to food security.Item Controlled Access Female labour force participation amidst the reestablishment of the Islamic emirate of Afghanistan 2021-2023(Universitas Islam Internasional Indonesia, 2024) Haidari, Adila; Rima Prama Artha; Hamidi, M. LuthfiAfghanistan experienced a significant decline in female labour force participation (FLFP) from 17% in 2021 to 6% in 2022, concurrently with re-establishing the Islamic Emirate of Afghanistan (Taliban) in August 2021. Thus, this study aims to investigate the factors that could have contributed to this rapid decline, explicitly examining whether the re-establishment of the regime played an essential role in this change. The study employed a mixed method approach, combining the quantitative approach using the ordinary least squares (OLS) model that estimates data from 1990-2021 with the qualitative in-depth interviews that capture a varied spectrum of respondents. This study found that political stability has the highest positive impact on female labour force participation, while the women business law index also presents a significant positive impact. However, in contrast, female education, fertility rate, and the dummy variable (representing the regime changes) significantly negatively impact FLFP. Further, qualitative findings corroborate these findings and reveal additional aspects not captured by the model, such as legal barriers, norms, security concerns, and gender discrimination, where legal barriers identified significant challenges to women's decision to join the labour market. Regrettably, these factors have been worsened by political instabilities and regime changes that further decrease women’s participation in the labour force. The results suggest the reforms in policies and regulations, thus pointing to the fact that improvements in the regulatory environment supporting female employment would also positively affect FLFP intensity.Item Embargo Irrational factors in decision-making to choose the sharia stock(Universitas Islam Internasional Indonesia, 2024) Martha Purna Syiva; Ugi Suharto; Aimatul YumnaThe increasing popularity of Islamic finance has led to a growing demand for Shariacompliant investment products, including Sharia stocks. Investors who adhere to Islamic principles often seek to direct their funds towards investments aligned with their religious and ethical values. However, the decision-making process in choosing Sharia stocks may not always be rational, as various psychological and behavioural factors can influence it. Behavioural finance research has identified several irrational elements that can impact an individual's investment decisions, such as overconfidence and herding behaviour, as well as religiosity and financial literacy factors. In Sharia-compliant investments, these irrational factors may play a significant role in an investor's choice to allocate funds to Sharia stocks, potentially leading to suboptimal decisions that deviate from rational financial considerations. Thus, this thesis aims to examine the influence of overconfidence and herding behaviour combined with religiosity and Sharia stock financial literacy on the decision-making process of investors when selecting Sharia-compliant stocks. All the variables in the model proceed with the Partial Least Square - Structural Equation Modelling (PLS-SEM) method. Using primary data from 290 respondents who are Sharia stock investors in Indonesia, this study found that religiosity, Sharia stock financial literacy, and overconfidence significantly impact decision-making to invest in Sharia stock. However, religiosity did not affect Sharia stock financial literacy substantially, and Sharia stock financial literacy was insignificant in mediating between religiosity and the decision to invest in Sharia stock. The results of this study show that Sharia stocks as Sharia-based investing instruments cannot separated from the ideological irrational aspects. Investors with a high sense of religiousity, literacy, and confidence in the Sharia value of a stock are the crucial factors in convincing them to choose a Sharia-based investing instrument.Item Embargo The impact of climate change on food security : evidence from West African countries(Universitas Islam Internasional Indonesia, 2024) Jallow, Mamadou Salieu; Dionisius A. Narjoko; Teguh Yudo WicaksonoThe global efforts to eradicate hunger and food insecurity by 2030 which is goal number 2 of the United Nations sustainable development goals is being undermine by the adverse impact of climate change on food security. Developing countries especially in West Africa are among the most vulnerable countries to climate change mainly due to the subregion’s dependance on rainfed agriculture for livelihood. Based on this background, this study examines the impact of climate change on food security in West African climate vulnerable countries while controlling macroeconomic factors. To achieve our aim, we employ panel data model to analyze the study comprising 10 West African climate vulnerable countries over the period 2000 to 2020. Findings from model 1 of the study reveal that, rainfall, GDP, trade openness, and cereal production have positive significant impact on food availability; whereas, average temperature, drought, greenhouse gas emission, and population density have adverse effects on food availability. Additionally, results from model 2 indicate that, rainfall, greenhouse gas emission, GDP, political stability, and cereal production improve food accessibility. In contrast, average temperature, drought, and food prices are found to have negative impact on food accessibility. Our findings implies that while rainfall improve food security, other climatic factors such as average temperature and drought drastically reduce food security. Besides, the macroeconomic factors influence food security. These findings are relevant for policymakers and stakeholders to help in achieving food security and sustainable economic growth and development in the sub-region. Therefore, among the policies, we suggest governments in West African countries to reduce carbon emission, increase agricultural investment, provide farmers with drought resistance crops, promote free trade within the sub-region, and stabilize food prices. Finally, the study is limited by unavailability of complete data. Again, the study did not include other pillars of food security such as food utilization and stability in examining the impact of climate change on food security. Therefore, we recommend future research to incorporate these limitations.Item Open Access The impact of FDI on trade and growth in BRICS countries a panel data analysis(Universitas Islam Internasional Indonesia, 2024) Sharma, Prabhanshu; Teguh Yudo Wicaksono; Aimatul YumnaThis thesis was conducted to identify the impact of FDI on the trade and growth of BRICS nation economies, to identify the common causes and different factors associated with the common causes that affect intra-trade relationships among BRICS nations, to explain the current developments and challenges that BRICS nations face in the shifting global trade landscape, to provide insight into unexpected impacts of inner related variables that affect the overall trade dynamics while associated, and lastly to provide policy recommendations on the betterment of intra-trade among BRICS nations. Data of the study is from BRICS (Brazil, Russia, India, China, and South Africa) economies constructing 52 years of observations from 1970 to 2022, and 260 numbers of observations, these data were taken from the IMF, The World Bank, BRICS organization, and are secondary data. The research method for the study is panel data analysis with Panel Ordinary Least Square, Random Effects, and Fixed Effects analysis while constructing two different models to first identify the impact of FDI on trade in BRICS countries as well as other major factors contributing to the impacts and then to identify the impact of FDI on growth in BRICS nations. Before the research, an initial pre-estimation analysis consisting of the correlation matrix, summary stats, and stationarity test are performed to reach an optimal model for the analysis. Moreover, the heteroskedasticity test, slope heterogeneity test, and multicollinearity tests are performed to get a conclusive result and to determine an optimal model for analysis which turns out to be random effects model with maximum likelihood option while observing the Langrange Multiplier test and Bruesh-Pagan value for the appropriateness of the model. The estimation results from both models found that FDI indeed impact positively in a significant manner on the trade and growth among BRICS nations with a positive coefficient of 0.67 at a 1% significance level, Economic growth is found to be negatively impacting the trade in BRICS countries due to tackling inflationary pressures because of increased purchasing power parity caused by economic growth for BRICS countries, Interest rate, unemployment, and exchange rates impact negatively on trade and lastly tax on international trade does not have any significant impact on trade among BRICS nations. This study bears importance since post COVID-19 era and its disastrous impacts, specifically on countries with high populations like China, India, and Russia, it was much needed to research to assess the trade prosperity of BRICS countries as the world major economic force, while other factors such as empirical inconsistencies and sectoral composition of trade and similar gaps needed to be addressed.Item Embargo Governance on multidimensional poverty : the case D-8 countries(Universitas Islam Internasional Indonesia, 2024) Chikara Nurilmi Syam; Ugi Suharto; Hamidi, M. LuthfiThe research aims to identify the characteristics of Good Governance that could potentially alleviate Multidimensional Poverty, as suggested by the Worldwide Government Indicators (WGI) proxy. It is also intended that this research will serve as a useful tool for D-8 officials and other policymakers in order to develop policies aimed at improving governance in the D-8 Organization for Economic Cooperation member countries. Using the Panel Data Analysis, the research determines the impact of governance on multidimensional poverty in the D-8 countries compared to other countries. Using data over the period of 2009 to 2022 from the World Bank Group for both dependent and independent variables. It was discovered that in the case of D-8 countries, only Political Stability and Absence of Violence, and Control of Corruption have proven to be able to mitigate Multidimensional Poverty while Voice and Accountability have proven to worsen Multidimensional Poverty in D-8 countries.Item 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 YumnaThis 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.Item Open Access The impact of economic growth on unemployment and poverty : evidence from Muslim countries(Universitas Islam Internasional Indonesia, 2024) Nikzad, Tareq; Teguh Yudo Wicaksono; Fajar B. HirawanEconomic growth, employment, and poverty are major factors and critical dimensions of development that affect significantly the lives of the people in nations which are members of the Organization of the Islamic Cooperation (OIC). This research is dedicated to exploring the interaction of economic growth, unemployment, and poverty in the context of Muslim-OIC countries. The importance of this study stems from the fact that it carries the prospects for shedding light on the crucial economic phenomena of the growth of economic operations and the effects of this growth on unemployment and poverty with reference to the special conditions of the OIC countries. A detailed research study of correlation between economic growth, unemployment and poverty in Muslim countries has been done with the help of data analysis for the years 1990-2022. The study has been designed to synthesize quantitative data collected and the number of Muslim countries used in the study vary in accordance to the availability of data. The data from OIC countries in Europe, South America, Central Asia, Middle East, south & South east Asia, and Africa and aimed to assess the economic growth impact on these vital socioeconomic indicators. Analyzing the regression results derived from the POLS, Fixed Effects, and Random Effects; it is possible to highlight the following findings that will help to explain the interrelated processes taking place. For instance, FE model estimated shows that the coefficient of GDP per capita (-2.681) has a negative impact on poverty level, meaning that with the increase in GDP per capita, poverty level significantly reduces in the countries. In the same vein, although the coefficient for trade is positive (0.011) when estimated using the results from the RE model, the effect on poverty is less profound compared to what the FE model show. Besides, the findings of the regression analysis have revealed the significance of factors like FDI, the structure of labor force with varying education standard and population growth to unemployment in Muslim countries. The negative coefficients including FDI (-0.031), labor force with Intermediary educational level (-0.022) and population growth (-0.268) assert the unemployment reducing factors. Consequently, the goal of this research, via a literature review, will be to establish the gaps in knowledge regarding the relationship between unemployment and poverty in nations belonging to the OIC in the long-run as influenced by economic growth.Item 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 WicaksonoThis 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.
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