scholarly journals Analysis The Use of Electronic Money in Indonesia

2020 ◽  
Vol 9 (4) ◽  
pp. 361-373
Author(s):  
Mifta Qoirun Nisa Arifin ◽  
Shanty Oktavilia
Keyword(s):  
Quantitative Methods ◽  
Time Series Data ◽  
Series Data ◽  
Electronic Money ◽  
Correction Model ◽  
Payment Methods ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Positive Effect

E-money is an innovation of payment methods. A transaction using electronic money has more advantages than using cash. These advantages make electronic money transactions keep increasing. Currently, the increment of electronic money transactions didn’t follow by a reduction in the amount of money in circulation. This study aims to analyze the effect of macro instruments such as Gross Domestic Product, money supply (M1), inflation, and BI Rate on e-money transactions. This study focuses more on server-based electronic money and cash-substitution capabilities. This research uses quantitative methods using time-series data from January 2009 to December 2019, and the Error Correction Model Engle-Granger was employed. The results of the study show that the GDP variable in a short-run has an insignificant negative effect, while in a long-run has a positive effect, it is also significant on e-money transaction in Indonesia. The M1 variable in the short-run has an insignificant negative effect, while in the long-run, it has a significant negative effect on e-money in Indonesia. Inflation variables in both the short and long-run have an insignificant positive effect on e-money in Indonesia. The variable BI rate in the short and long-run have an insignificant negative effect on e-money in Indonesia.

scholarly journals ANALISIS PENGARUH REMITANSI, INVESTASI ASING LANGSUNG, IMPOR DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (4) ◽  
Author(s):  
Regina Septriani Putri ◽  
Ariusni Ariusni
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Government ◽  
Positive Effect

Abstract : This study examined and analysis the effect of remittances, foreigndirect investment, imports, and economic growth in Indonesia in the long run andshort run. This study using Error Correction Model (ECM) method and using theannual time series data from 1989 to 2018. This study found that: (1) remittancehave an insignificant positive effect on economic growth in the long run and shortrun,(2)foreign direct investment have a significant positive impact on economicgrowth in the long run and short run, (3) import have an insignificant positiveimpact on economic growth both in the long run and short run. To increase theeconomic growth in the future, this study suggests the government to decresingimports of consume goods and increasing the inflow of capital goods, rawmaterial goods, remittances and foreign direct investment.Keyword : Remittance, Foreign Direct Investment, Import, Economic Growth andECM

scholarly journals Political Stability and its Impact on Economic Growth of Pakistan (1988-2018): A Time Series Analysis

2020 ◽  
Vol 6 (1) ◽  
pp. 273-282
Author(s):  
Majid Hussain Phul ◽  
Muhammad Saleem Rahpoto ◽  
Ghulam Muhammad Mangnejo
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Time Series Data ◽  
Political Stability ◽  
Series Data ◽  
Explanatory Variables ◽  
Long Run ◽  
Short Run ◽  
The Impact ◽  
Positive Effect

This research paper empirically investigates the outcome of Political stability on economic growth (EG) of Pakistan for the period of 1988 to 2018. Political stability (PS), gross fixed capital formation (GFCF), total labor force (TLF) and Inflation (INF) are important explanatory variables. Whereas for model selection GDPr is used as the dependent variable. To check the stationary of time series data Augmented Dickey Fuller (ADF) unit root (UR) test has been used,  and whereas to find out the long run relationship among variables, OLS method has been used. The analysis the impact of PS on EG (EG) in the short run, VAR model has been used. The outcomes show that all the variables (PS, GFCF, TLF and INF) have a significantly positive effect on the EG of Pakistan in the long run period. But the effect of PS on GDP is smaller. Further, in this research we are trying to see the short run relationship between GDP and other explanatory variables. The outcomes show that PS does not have such effect on GDP in the short run analysis. While GFCF, TLF and INF have significantly positive effect on GDP of Pakistan in the short run period.

scholarly journals Analysis The Effect of Electronic Money Use on Velocity of Money: Evidence from Indonesia

2020 ◽  
Vol 5 (1) ◽  
pp. 42
Author(s):  
Sufi Azhari Pambudi ◽  
M. Khoerul Mubin
Keyword(s):  
Interest Rates ◽  
Quantitative Research ◽  
Time Series Data ◽  
Series Data ◽  
Research Approach ◽  
Electronic Money ◽  
Correction Model ◽  
Income Levels ◽  
Long Run ◽  
Velocity Of Money

This study aims to examine the effect of electronic money transactions on the velocity of money in Indonesia. This study uses a quantitative research approach using quarterly time series data for the 2010q1-2018q4 period. Using variable velocity obtained from Gross Domestic Product (GDP) divided by M2, electronic money transactions, GDP per capita, and interest rates using the Error Correction Model (ECM) method. The results show that in the long run variable electronic money transactions, income levels and interest rates are significantly positive. In the short term, interest rates and income levels are significantly positive, while electronic money transactions only have a slight effect on the velocity of moneyin Indonesia.

scholarly journals Tractorisation and Agricultural Development in India

2013 ◽  
Vol 8 (4) ◽  
pp. 285-292
Author(s):  
Komol Singha
Keyword(s):  
Agricultural Development ◽  
Agricultural Sector ◽  
Time Series Data ◽  
Positive Impact ◽  
Green Revolution ◽  
Series Data ◽  
Correction Model ◽  
Agriculture Sector ◽  
Long Run ◽  
Short Run

Technological innovations have had profound effect on agricultural sector in the post-Green Revolution period in India. With the inception of Green Revolution, mechanisation process, especially the application of tractor in agriculture sector had intensified. However, in 2000s, the pattern of mechanization has diversified slightly from the intensive tractorisation to other implements like, irrigation, fertilizer, harvester, energy and others. Using a time series data on tractorisation and agriculture GDP for 43 years, co-integration regression method was employed to understand short run equilibrium between the variables. Further, the Error Correction Model (ECM) result showed that elasticities of mechanization were 10.4 percent and 0.52 percent for the long-run and the short-run respectively. It implies that a positive impact of mechanization on agriculture GDP was found both in the short run and long-run.

scholarly journals MACROECONOMIC VARIABLES AFFECTING THE FISH TRADE BALANCE IN MALAYSIA

2020 ◽  
Vol 2 (Number 2) ◽  
pp. 52-62
Author(s):  
Bee Hui Soh ◽  
Ghee-Thean Lim
Keyword(s):  
Trade Balance ◽  
Time Series Data ◽  
Trade Openness ◽  
Trade Deficit ◽  
Series Data ◽  
Macroeconomic Factors ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
Fish Trade

The world demand for fish has been increasing. Malaysia has a high fish trade with other countries. However, Malaysia, which has been one of the main fish producers given its long coastlines, still experiences a fish trade deficit. The present study aims to explore the effect of macroeconomic factors on the Malaysian fish trade balance by implementing the Vector Error Correction Model (VECM) on the time series data from 1976 to 2016. The findings reveal that foreign income is positively correlated with the trade balance in both short-run and long-run. Nevertheless, trade openness, depreciation of exchange rate, and money supply show a negative effect on the trade balance for the long-run mainly. The incidents are mainly due to fish import dependence and a lack of capacity of exporting fish. To strengthen the trade balance, reducing fisheries products export duties and restricting imported fisheries products are highly recommended.

scholarly journals Elections, Foreign Direct Investment, and Economic Growth in Ghana’s Fourth Republic: 1993 to 2016

2019 ◽  
pp. 1-8
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Positive Impact ◽  
Series Data ◽  
Long Run ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

Foreign Direct Investment (FDI) has been seen as an important factor influencing economic growth directly and indirectly in both developed and developing countries. This study assesses the impact of FDI on growth in Ghana since the return to constitutional rule in 1993. The study uses time series data from 1993 to 2016. Using the Autoregressive Distributed Lagged model (ARDL), the study finds a positive impact of FDI on growth both in the short-run and long-run. However, there is a lag period of two. The study equally finds that Gross Saving has a positive impact on growth. On the other hand inflation has a negative effect on growth both in the short and long run. The study also discovered that FDI granger causes growth but GDP does not granger cause FDI. Post-election years with incidence of political uncertainty slow down FDI inflow into Ghana. The study recommends the adoption of stringent fiscal and monetary policies to keep inflation low. It also recommends maintaining and improving the liberal market environment to attract investors, policies to encourage saving, and improving on political transitions to avoid uncertainties for investors.

scholarly journals Analyzing The Macroeconomic and Fundamental Determinants of Non-Performing Financing of Bank Muamalat Indonesia

2020 ◽  
Vol 11 (1) ◽  
pp. 49-78
Author(s):  
Pungky Lela Saputri ◽  
Ratno Agriyanto ◽  
Mujiyono Abdillah
Keyword(s):  
Time Series ◽  
Error Correction ◽  
Time Series Data ◽  
Error Correction Model ◽  
Capital Adequacy ◽  
Series Data ◽  
Islamic Banking ◽  
Correction Model ◽  
Long Run ◽  
Short Run

Abstract: This study analyzes the macroeconomic and fundamentals of Islamic banking factors towards the non-performing financing (NPF) of Bank Muamalat Indonesia in the long run and short-run period 2005-2018. The data used in this study are quarterly time-series data of Bank Muamalat Indonesia Financial Report as the source of fundamentals of Islamic banking data and Bank Indonesia Monetary Policy Review as the source of macroeconomic data period 2005 - 2018. The analytical method used is the Error Correction Model (ECM). This study shows that in the long run, inflation, central bank (Bank Indonesia/BI) Rate, and capital adequacy ratio (CAR) significantly affect the NPF; meanwhile, the financing to deposit (FDR) ratio does not affect NPF. In the short term context, only CAR has a significant effect, yet inflation, BI Rate, and FDR have no significant impact on NPF. Thus, the novelty can present the result of analysis of factors that affect NPF in the long run and short run. The limitation of the study is the use of time-series data that are very likely to spurious regression.Abstrak: Penelitian ini bertujuan untuk menganalisis pengaruh faktor makroekonomi dan fundamental perbankan syariah terhadap NPF Bank Muamalat Indonesia dalam jangka panjang dan jangka pendek periode 2005-2018. Data yang digunakan dalam penelitian ini yaitu data runtun waktu Laporan Keuangan Triwulan Bank Muamalat Indonesia sebagai sumber data fundamental perbankan syariah dan Tinjauan Kebijakan Moneter Bank Indonesia sebagai sumber data makroekonomi periode 2005 – 2018. Faktor makroekonomi diwujudkan dalam variabel Inflasi dan BI Rate. Faktor fundamental perbankan syariah diwujudkan dalam variabel CAR dan FDR. Alat analisis yang digunakan yaitu Error Correction Model (ECM). Hasil analisis menunjukkan dalam jangka panjang Inflasi, BI Rate, dan CAR dengan nilai signifikansi 0.0026, 0.0001, dan 0.0032 berpengaruh signifikan dan FDR dengan nilai signifikansi 0.6940 tidak berpengaruh signifikan terhadap NPF. Dalam jangka pendek hanya CAR dengan nilai signifikansi 0.0056 yang berpengaruh signifikan sedangkan Inflasi, BI Rate, dan FDR dengan nilai signifikansi 0.0666, 0.9532, and 0.2065 berpengaruh tidak signifikan terhadap NPF. Kebaharuan penelitian ini yaitu penelitian ini mampu menyajikan hasil analisis faktor-faktor yang mempengaruhi NPF dalam jangka panjang dan jangka pendek. Meski begitu, terdapat juga limitasi pada penelitian ini yaitu penggunaan data time series yang rawan terkena regresi lancung.

Impact of exchange rate and oil price on the yield of sovereign bond and sukuk: Evidence from Malaysian capital market

2017 ◽  
Vol 5 (4) ◽  
pp. 27
Author(s):  
Huda Arshad ◽  
Ruhaini Muda ◽  
Ismah Osman
Keyword(s):  
Exchange Rate ◽  
Capital Market ◽  
Time Series Data ◽  
Oil Prices ◽  
Oil Price ◽  
Series Data ◽  
Sovereign Bond ◽  
Long Run ◽  
Short Run ◽  
The Impact

This study analyses the impact of exchange rate and oil prices on the yield of sovereign bond and sukuk for Malaysian capital market. This study aims to ascertain the effect of weakening Malaysian Ringgit and declining of crude oil price on the fixed income investors in the emerging capital market. This study utilises daily time series data of Malaysian exchange rate, oil price and the yield of Malaysian sovereign bond and sukuk from year 2006 until 2015. The findings show that the weakening of exchange rate and oil prices contribute different impacts in the short and long run. In the short run, the exchange rate and oil prices does not have a direct relation with the yield of sovereign bond and sukuk. However, in the long run, the result reveals that there is a significant relationship between exchange rate and oil prices on the yield of sovereign bond and sukuk. It is evident that only a unidirectional causality relation is present between exchange rate and oil price towards selected yield of Malaysian sovereign bond and sukuk. This study provides numerical and empirical insights on issues relating to capital market that supports public authorities and private institutions on their decision and policymaking process.

Fish Exports and Economic Growth: The Pakistan’s Experience

2019 ◽  
Vol 20 (2) ◽  
pp. 279-296 ◽  
Author(s):  
Syed Tehseen Jawaid ◽  
Mohammad Haris Siddiqui ◽  
Zeeshan Atiq ◽  
Usman Azhar
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Positive Impact ◽  
Impulse Response Function ◽  
Policy Implications ◽  
Sensitivity Analyses ◽  
Series Data ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run

This study attempts to explore first time ever the relationship between fish exports and economic growth of Pakistan by employing annual time series data for the period 1974–2013. Autoregressive distributed lag and Johansen and Juselius cointegration results confirm the existence of a positive long-run relationship among the variables. Further, the error correction model reveals that no immediate or short-run relationship exists between fish exports and economic growth. Different sensitivity analyses indicate that initial results are robust. Rolling window analysis has been applied to identify the yearly behaviour of fish exports, and it remains negative from 1979 to 1982, 1984 to 1988, 1993 to 1999, 2004 and from 2010 to 2013, and it shows positive impact from 1989 to 1992, 2000 to 2003 and from 2005 to 2009. Furthermore, the variance decomposition method and impulse response function suggest the bidirectional causal relationship between fish exports and economic growth. The findings are beneficial for policymakers in the area of export planning. This study also provides some policy implications in the final section.

Does Public Debt Service Expenditure Crowd-Out Economic Growth? Empirical Evidence from an African Developing Country

2019 ◽  
Vol 64 (3) ◽  
pp. 23-38
Author(s):  
Talknice Saungweme ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Public Debt ◽  
Time Series Data ◽  
Policy Formulation ◽  
Debt Service ◽  
Series Data ◽  
Long Run ◽  
Short Run ◽  
The Impact

Abstract This paper contributes to the ongoing debate on the impact of public debt service on economic growth; and it provides an evidence-based approach to public policy formulation in Zimbabwe. The empirical analysis was performed by applying the autoregressive distributed lag (ARDL) technique to annual time-series data from 1970 to 2017. The study findings reveal that the impact of public debt service on economic growth in Zimbabwe is negative in the short run but positive in the long run. The results are suggestive of the existence of a crowding-out effect of public debt service in Zimbabwe in the short run and a crowding-in effect in the long run. In view of these findings, the government should consider fiscal and financial policies that promote a constant supply of long-term finance, long-term fixed investments, and extension of a government securities maturity structure so as to ensure sustainable short- and long-term public debt service expenditures. The study further recommends the strengthening of non-distortionary revenue mobilisation reforms to reduce market distortions and boost domestic investment.

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