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Item Embargo Analyzing the market conditions and long-term dynamics in the biodiesel industry(Taylor & Francis, 2024-07-02) Muhammad, Mansur; Herbert Wibert Victor HasudunganThe 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.Item Open Access Food security in D8 countries : comparative challenges and sustainable strategies(ISRG Publishers, 2024-09-12) Fazlullah Ihza Qaseem; Melani Sukma YuridisFood security is a critical global issue, and the D8 countries (Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, and Turkey) represent a significant group of emerging economies with diverse agricultural systems and challenges. The purpose of this paper is to investigate the determinants of food security in the D8 countries using panel data regression analysis. The study utilizes a panel dataset covering a time period of 9 years (2012-2020) for the eight members of D8 countries, except Iran, with variables representing the proportion of agriculture's added value to GDP, the value of agricultural production per capita, the share of agricultural exports to total exports, and land productivity. The panel data regression analysis employs appropriate econometric techniques, which is random effects model, to account for cross-country and time-series variations. The result of the study shows that the value of agricultural production per capita has a positive relationship with Food Security variable. While the variables of the share of the added value of agriculture in GDP and the share of export of agricultural products in total export have a negative correlation with Food Security. There is also no correlation between land productivity and food security. The results of this paper will provide valuable information for policymakers and stakeholders to formulate effective strategies and interventions to improve food security in the region. The results of this research will also provide implications for other developing countries facing similar challenges in ensuring food security for their populations.Item Open Access Factors influencing the success and sustainability of threesided markets : a qualitative case study of postmates company(ISRG Publishers, 2024-09-17) Fazlullah Ihza Qaseem; Chikara Nurilmi Syam; Emil HarakiThree-sided markets, which facilitate interactions between consumers, service providers, and platform operators, have emerged as an important model in the platform economy. This research explores the factors influencing the success and sustainability of these markets, with a focus on Postmates, a key player in the gig economy. Utilizing a qualitative case study approach, the paper analyzes existing literature and company data to examine how Postmates operates and sustains interactions between its users. Key factors identified include platform design, user experience, and the role of network effects, where the platform’s value increases as more users join. The study also highlights the significant impact of three-sided platforms on consumer behavior, with convenience and variety driving customer loyalty. In terms of gig economy dynamics, the research underscores the need for balancing flexibility and income stability for couriers. This study provides practical insights for platform operators, policymakers, and researchers, emphasizing the need for continuous innovation to adapt to evolving market conditions and regulatory frameworks. The findings conclude with recommendations for overcoming challenges in three-sided markets and suggest future research directions, including broader case studies and the integration of primary data.Item Open Access The impact of inflation rate and interest rate on Islamic and conventional banking in Afghanistan(ZAIN Publications, 2023-11) Nikzad, TareqSince the first bank was established in 1933, Afghanistan's banking sector has seen a number of variations but hasn't been able to grow to its full potential because of the civil war. The implementation of dual banks in Afghanistan is investigated in this study in relation to the effects of inflation and interest rates. This research took data from World Bank Data (WBD) over a period of nineteen years. For the banking sector, inflation, which is the general rise in prices of goods and services over time, presents considerable difficulties. The objectives of this research are to analyze the effect of inflation and interest rates on conventional and Islamic banks in Afghanistan, identify potential differences between these two banking models, and provide insights for policymakers and practitioners. A mixed-methods approach is used in the research to analyze quantitative data and qualitatively examine the unique difficulties that banks in Afghanistan's economic atmosphere encounter. The findings contribute to the understanding of the relationship between interest rate, inflation rate, and the performance of both banking systems in Afghanistan. The paper concludes with recommendations for policymakers and banking institutions to enhance the stability and growth of the banking sector in Afghanistan. Interest is described as "a prefixed rate for use or borrowing of money" from an Islamic perspective. This "prefixed rate," known in Islamic economics as "riba," has been described as "something undesirable." Furthermore, by using the time series regression data technique on the annual data from 2003 to 2021, this research examines the effect of CPI inflation rate and interest rate of Banking in Afghanistan.Item 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, IssaConsumption 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.Item Open Access Human capital for economic development : a study of education production performance (EPP) in Khairpur(ZAIN Publications, 2024-02) Junejo, Safiullah; Ayaz, MariaThe analysis of education production performance involves evaluating the inputs of faculty, teachers, and students to determine the academic achievement of students. This study aims to estimate the education production performance of both state and private higher secondary schools in Khairpur and identify the factors that affect instructional outcomes in the region. Education is crucial for development, as a highquality education system is essential for increasing people's skills, knowledge, and abilities, ultimately contributing to the growth of human capital. In a developing country like Pakistan, where policymakers face challenges such as a rapidly growing population, low levels of education, and limited resources, improving educational efficiency is critical to achieving progress. A thorough understanding of the factors that contribute to instructional success is essential in this regard. To construct the model, a cross-sectional dataset was used, and a standard least squares method was employed with annual examination results as the output variable and school inputs, student characteristics, family background, and teacher characteristics as the input variables for both private and public schools. The results of the study indicate that student characteristics, teacher qualities, and family background, except for the mother's education, career, and income, have a statistically significant impact on students' academic performance. The findings of this study have significant policy implications for Khairpur and Pakistan as a whole. Improving educational outcomes will be critical in enhancing the human capital stock, which, in turn, is essential for economic growth and improving living standards. By understanding the factors that contribute to instructional success, policymakers can devise effective strategies to address the challenges faced by the education sector and improve overall educational efficiencyItem Open Access Monetary policy dynamics and economic growth an empirical analysis of Indonesia's economy using time-series data and error correction model (ECM)(ZAIN Publications, 2024-03) Fazlullah Ihza QaseemThis study investigates the relationship between monetary policy variables and GDP growth in Indonesia using time-series data from 1986 to 2021. Employing the Error Correction Model (ECM) framework, the research explores the presence of a long-run relationship among the variables and identifies significant monetary policy instruments that drive economic growth. The findings reveal a robust long-run relationship between monetary policy variables and GDP growth, indicating the sustained impact of monetary policy on Indonesia's economic performance. Specifically, the core finding highlights the significance of the inflation rate, exchange rate, and total reserves as influential monetary policy instruments driving growth in Indonesia. This finding helps policymakers better understanding about the relationship between monetary policy and economic development in the context of Indonesia by offering insightful information. By utilizing an extensive time-series dataset and employing the ECM methodology, this study contributes to the existing literature on the role of monetary policy in shaping economic growth, particularly in Indonesia.Item Open Access The impact of fiscal policy on economic growth : fresh evidence from Malaysia(ZAIN Publications, 2024-02) Haidari, Adila; Junejo, SafiullahMany scholars have researched the connection between fiscal policy and economic growth and how fiscal policy can be a crucial factor for economic development and growth. Despite this, it still remains a critical debate amongst policymakers and scholars. Thus, this study fills the gap by analyzing the impact of fiscal policy on economic growth in Malaysia spanning 1990 to 2022. The secondary data from World Bank Indicators (WDI) is collected. This study examines the impact of fiscal policy (government expenditure) on Malaysia's economic growth by adding more macro factors such as unemployment, tax revenue, and inflation. This study employs the Autoregressive distributed lag (ARDL) model to examine the long-run correlation to meet this objective. Furthermore, various econometric models are employed, including the ARDL bound test and the error correction model (ECM), to check the relationship between the variables. Based on empirical results and findings, the study suggests that there is a strong relationship between GDP and expenditure, unemployment, tax revenue and inflation since the probability value is less than significant in the short-term relationship with constant and unrestricted constant form. Additionally, with the ARDL Model boundary test, government expenditure, unemployment, tax revenue, and inflation have a long-term relationship with GDP in Malaysia, where the F-statistic value is smaller than the lower boundary. Moreover, the Error correction method with restricted constant suggests a long-term link between the expenditure and GDP. Notwithstanding the results, fiscal policymakers must carefully evaluate the efficacy of government expenditure allocation to ensure that it is consistent with the longterm economic growth goals. The potential limitation of this study is its dependency on secondary data from the World Bank Indicators (WDI), which may not capture all relevant nuances of Malaysian fiscal policy and economic dynamics.Item Open Access Leverage, capital adequacy, and financial stability in the fintech industry : evidence from Indonesia(Modern Finance Institute in cooperation with Poznan University of Economics and Business, 2024-07-14) Baita, Abubakar Jamilu; Diah Bardiah; Suhail; Basalma, Ebrahim OmarThe paper examined the influence of leverage and capital adequacy on fintech's financial stability in Indonesia. We utilize both quantitative and qualitative methods. The findings showed that leverage significantly constrained the financial stability of the fintech industry in the short run. Contrarily, capital adequacy has no significant effect on financial stability. Specifically, the qualitative results indicated that a high liability-to-asset ratio depressed the financial stability of the fintech industry. However, the influence of the asset-to-equity ratio on financial stability depends on asset quality, liquidity, and riskiness. Furthermore, the respondents noted the insufficiency of capital requirements in the fintech industry. Thus, fintech firms should focus on asset quality, while regulators should tighten capital regulation.Item Open Access Analyzing the determinants of trade balance : an empirical investigation of Indonesia's economic dynamics(2024-05) Nyange, Asia Khamis; Jonas, AjibuThe 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.Item Open Access Navigating the digital wave : mapping the research trends of digital finance (fintech) through a bibliometric lens(ZAIN Publications, 2024-03) Hamza, Ali; Saleh, Husny Gibreel MusaIn the wake of swift digitalization and technological progress, individuals worldwide have embraced the notion of digital finance. While academic literature has extensively explored various facets of financial digitalization, there remains a scarcity of research examining these services through a bibliometric lens. Thus, this study endeavours to provide a bibliometric analysis of adoption of digital finance, drawing insights from the Scopus database's literature review spanning from 2003 to 2023. The charts are directly extracted form scoups Analysis tab but for visualization VOSviewer software is used. The results highlight a dynamic and collaborative research environment with global impact, featuring diverse contributions from different countries and individuals in the evolving field of Financial Technology and Digital Money Publications. China has taken a lead with approximately 1400 publications, reflecting its substantial role in contributing to the field. However, recent collaborations, though fewer in number, have emerged from Pakistan and Malaysia, signifying diverse contributions .A significant portion of research, 20.1%, is categorized under Computer Science, showcasing the interdisciplinary nature of the field. "Sustainability Switzerland" stands out as a preeminent journal, housing 118 documents in the Scopus database, and is a prominent choice for collaboration among authors, alongside "Finance Research Letters. Asian educational institutions dominate the institutional landscape in terms of publication count, indicating a strong commitment to advancing research. Individual contributions are also notable, with "Rabbani" emerging as a foremost author, contributing 20 documents to the Scopus database.Item Open Access Drivers of halal certification value chain : PLS-SEM approach(Program Studi Ekonomi Syari'ah, Fakultas Agama Islam, Universitas Siliwangi, 2024-06) Shellvy LukitoThe 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.Item 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 WijayaThis 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.Item Open Access The SDG-Islamic banking nexus : insights from the OIC top economies(Universitas Islam Negeri Ar-Raniry, 2024-05-29) Basalma, Ebrahim OmarIslamic Banking and Finance (IBF) has emerged as a promising alternative to conventional finance, with its principles aligned with the United Nations' Sustainable Development Goals (SDGs). This study investigates the relationship between the performance of IBF in five major Organization of Islamic Cooperation (OIC) countries - Saudi Arabia, Turkey, Indonesia, Malaysia, and the United Arab Emirates - and key SDG indicators: return on assets, regulatory capital to assets, regulatory Tier 1 capital to risk-weighted assets, and broad money to total reserves ratio. Employing panel data analysis, the research reveals that three out of the four SDG indicators significantly impact the total assets of Islamic banks, while the regulatory capital-to-assets indicator shows no significant relationship. These findings underscore the complex interplay between profitability, risk management, liquidity, and asset growth in the IBF sector. The study contributes to the growing body of literature on the role of IBF in promoting sustainable development. The results have important implications for regulators, policymakers, and Islamic banking institutions, highlighting the need for a balanced approach that reconciles financial performance with social and environmental objectives. By aligning IBF with the SDGs, this research paves the way for a more sustainable and inclusive financial system that can drive economic growth, social welfare, and environmental sustainability in the Muslim world and beyond.Item 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 FirmansyahThe 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.Item Open Access Nexus between digital economy, productivity and growth : evidence from Nigeria(Formosa Publisher, 2024-01-29) Salisu Garba AbdullahiThis study investigated the role of the digital economy on the growth of the Nigerian economy. Quarterly data on the two indicators of the digital economy which include internet penetration and ICT and some other control variables were analyzed using the Autoregressive Distributed Lag Model (ARDL). In addition to that, the Bound test is employed to determine the long-run relationship among the variables. The findings showed that the digital economy indicators are negatively impacting the growth of GDP and productivity in Nigeria. The unfavorable result can be attributed to the dominance of the government in the ICT sector. Before the 2001 liberalization agenda, the sector was entirely owned and managed by the Nigerian Government through the Nigerian Telecommunications Limited (NITEL).Item Open Access Determinants of bond market development in Nigeria(Formosa Publisher, 2024-04-30) Baita, Abubakar JamiluCapital 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.Item Open Access Islamic banking and financial development : a cross-country analysis(Universitas Muhammadiyah Yogyakarta, 2024-07-29) Baita, Abubakar JamiluIslamic banking has become an integral part of the modern financial system. Therefore, this study examined the effect of Islamic banking on financial development in countries with a matured practice of Islamic finance. These countries include Iran, Saudi Arabia, Malaysia, UAE, Kuwait, Qatar, Turkey, Bangladesh and Indonesia. Besides, we collected data on Islamic banks' assets and financial development indicators over nine (9) years between 2012 and 2020. The study applied heteroscedastic panel corrected standard errors (HPCSE) regression model to estimate results. The findings indicated that Islamic banks contribute significantly to improving financial development after controlling for banking characteristics (credit risk and capital adequacy ratio) and macroeconomic factors (real per capita GDP, inflation and trade openness). Due to data limitations, this study covers only nine countries over nine years (2012 -2020). The findings provided insight into the contribution of Islamic banks to financial development, which can motivate regulatory authorities and policymakers to improve the practice of Islamic banking and finance through the provisions of enabling and motivational regulations and policies. This study provided a novel contribution as this issue is underresearched. Most existing studies concentrate on the macroeconomic and institutional determinants of financial development, thus relegating the role of Islamic banking in spurring financial development.Item Open Access The nexus between government spending and economic growth in Saudi Arabia(ZAIN Publications, 2024-02) Jonas, AjibuThis paper analyses the impact of government spending on economic growth in Saudi Arabia. A five variable of the Vector Error Correction model (VECM) is used to analyze the relationship between government spending, import, population, exchange rate, and economic growth (GDP). Data was obtained from the World Bank website from 1970 to 2022. Two of our variables were stationary at level alpha 5%, while the other three variables were not stationary at level alpha 5%. This makes us test them in the first difference where all the variables were stationary at alpha 5%. We also tested our lag length criteria, and we found out that the (*) were many in lag three (3). Furthermore, the results from the impulse response, variance decomposition, and five-year forecasting indicate that in the short run, government spending and imports have improved Saudi Arabia's economic growth. The results also indicate that there was no four-way Granger causality among the variables but just two-way. Our results for cointegration also indicate there was one cointegration result, which resulted in us using the VECM. The forecasting results indicate that the country's GDP also tends to decrease by one percent from 2023-205, and after that, it returns to its shock by increasing again by one percent from 2006 to 2008. (9% to 10%).Item Open Access Symmetric and asymmetric response of the renewable energy market to Indonesian economic trends(Universitas Islam Internasional Indonesia Press, 2024-06-29) Junejo, Safiullah; Muhammad, Mansur; Herbert Wibert Victor HasundunganThis study digs into the complex interplay between renewable energy market development and Indonesian economic trends. Our rigorous study aims to investigate the impact of crucial economic indicators, including gross domestic product (GDP), exchange rates, inflation, real interest rates, net inflow of foreign direct investment (FDI), and urbanisation, on the renewable energy landscape in Indonesia between 1973 and 2022. This study provides a novel insight by investigating both symmetric and asymmetric impacts in the context of Indonesia. While previous studies have limited scope with linear relationships, this study fills a gap by capturing the dynamic interplay between renewables and economic indicators. By employing a robust econometric model, we reveal interesting patterns highlighting the multidimensional nature of the renewable energy market's responses to economic trends and find that there is a long-term interplay among the variables under linear and non-linear models. We found empirical evidence indicating that the nexus is asymmetric. However, in the long term, GDP exhibits an asymmetric positive impact on renewable energy consumption in the linear model. This shows that economic growth positively correlates with Indonesia's adoption of sustainable renewable energy sources. Similarly, urbanisation shows a positive response, with expanding cities boosting demand for cleaner and greener energy. Surprisingly, exchange rates show an asymmetric response, demonstrating that depreciation of local currency has a disproportionate negative impact on renewable energy investment during economic downturns. Inflation also exhibits a negative asymmetric response due to eroding purchasing power that reduces investment in renewables. Meanwhile, net inflow of FDI emerges as a critical driver in favourable economic conditions, dramatically amplifying renewable energy capacities. Therefore, during economic recessions, FDI’s impact diminishes and emphasises the significant importance of tailored interventions. Based on the findings of this study, which demonstrate the profound interplay of how the Indonesian economy shapes and is affected by the renewable energy market, we encourage the adoption of policies that promote sustainable energy development while increasing economic resilience. We recommend that policymakers support renewable energy diversification to lessen the vulnerability of exchange rate fluctuations. Attracting FDI is also crucial, as policies can help strengthen the investment climate and bolster the renewable energy sector. Inflation-indexed incentives can help maintain confidence and foster economic growth.