scholarly journals The Nexus Between Financial Inclusion and Economic Growth in ASEAN

JEJAK ◽  
2019 ◽  
Vol 12 (2) ◽  
pp. 267-281
Author(s):  
I Made Suidarma
Keyword(s):  
Economic Growth ◽  
Secondary Data ◽  
Financial Sector ◽  
Financial Inclusion ◽  
Vector Error Correction ◽  
Automatic Teller Machine ◽  
Asean Countries ◽  
Relationship Of ◽  
The Impact

Inclusive growth has recently become an interesting issue to be studied more deeply, especially in the financial sector as outlined in the concept of financial inclusion. The role of the financial sector is important considering this sector is the primary sector in encouraging economic activity especially in the real sector. This study aims to analyze the influence and long-term relationship of financial inclusion through the instrument of the number of Automatic Teller Machine (ATM)s and commercial bank branches on ASEAN economic growth through Gross Domestic Product (GDP). The data used is secondary data in the form of an annual panel consisting of ASEAN countries with the period of 2008-2015 for the purpose of seeing the impact after the global crisis that occurred. The method used Panel Vector Error Correction Model (VECM) to see the long-term relationship and the GDP response when shocks occur in the variable financial inclusion. The result of estimation shows that financial inclusion through the number of ATMs and the number of branches of commercial banks were able to contribute positively to economic growth in ASEAN.

ANALISIS HUBUNGAN KAUSALITAS SEKTOR KEUANGAN DAN PERTUMBUHAN EKONOMI DI INDONESIA

2020 ◽  
Vol 2 (3) ◽  
Author(s):  
Hendra Kesuma
Keyword(s):  
Economic Growth ◽  
Capital Accumulation ◽  
High Performance ◽  
Secondary Data ◽  
Financial Sector ◽  
Analytical Framework ◽  
Vector Error Correction ◽  
Vector Error ◽  
Demand Deposits ◽  
Relationship Of

The financial sector plays a very significant role in triggering the economic growth of a country and also became the locomotive of growth in the real sector through capital accumulation and technological innovation. High performance financial sector will result in increased economic growth instead of economic growth is not the main cause of the improvement in the performance of the financial sector. This study aims to examine the relationship of causality between financial sector and economic growth in Indonesia, where the financial sector in the show by the monetization ratio, the ratio of loans, demand deposits and savings. By using secondary data for the period 2000-2010, This research uses the analytical framework cointegration and Vector Error Correction Model (VECM) between financial sector development and economic growth. The results showed that the financial sector indicated by the ratio of monetization, credit ratios, demand deposits and savings have no causal relationship with economic growth in Indonesia. Significant influence given variable demand deposits to economic growth. Instead of economic growth significantly affect the monetization and savings.

scholarly journals Impact of banking institutions on national economy an empirical study of time series analysis in Pakistan

2015 ◽  
Vol 4 (4) ◽  
pp. 327-333
Author(s):  
Nouman Badar ◽  
Munib Badar
Keyword(s):  
Economic Growth ◽  
Financial Sector ◽  
Study Data ◽  
Short Term ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
Short Run ◽  
Banking Institutions ◽  
Relationship Of

This paper examines the long and short term relationship of financial sector development on economic growth of Pakistan where development of financial sector is detected by the variables truly depicts the efficiency of financial sector i.e. Money Supply, size of Advances, Private sector Credit growth and Bank’s equity with economic growth which is pronounced by Gross Domestic Product in this study. Data of almost 22 years ranges from 1992 to 2013 of overall banking industry is taken to obtain results by employing Johnson and Jusellious co integration technique to detect long run association while Granger Casualty test is used to determine cause and effect relationship and to measure short term dynamics Vector Error correction model is used. The result shows that both long and short run relationship exists between growth of financial sector and economy of Pakistan.

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals DAMPAK KEBIJAKAN HARGA BERAS DAN LUAS AREAL IRIGASI TERHADAP PENGENTASAN KEMISKINAN DI INDONESIA

2016 ◽  
Vol 4 (2) ◽  
pp. 91
Author(s):  
Dudi Septiadi ◽  
Harianto Harianto ◽  
Suharno Suharno
Keyword(s):  
Economic Growth ◽  
Secondary Data ◽  
Price Policy ◽  
Poor People ◽  
Short Term ◽  
Rice Policy ◽  
Food Commodities ◽  
Two Stages ◽  
The Impact

<em>Poverty is one of the major problems in Indonesia is unresolved. Rice is the main food commodities that affect the welfare of million people in Indonesia. Rice is a major source of calories most of the Indonesian people. The objective of this study was to analyze the impact of rice policy on poverty in Indonesia. Specifications of research model using simultaneous equations and allegedly with the method Two Stages Least Squares (2SLS). The data used is secondary data with the time span from 1981 to 2014. The results showed that a decrease in the retail price of rice is able to reduce poverty. But the effect is relatively small. Real retail rice price increase 1 percent would increase poverty by 0.037 percent in the short term and amounted to 0.124 percent in the long term. Economic growth to be the only variable that significantly affect poverty. Increase economic growth by 1 percent would reduce poverty by 0.090 percent in the short term and amounted to 0.306 percent in the long term. In an effort to reduce the number of poor people, government purchasing price policy should be followed by other rice policy, such a policy increase the area of irrigated area.</em>

scholarly journals Impact of Monetary Policy and Foreign Direct Investment Against Indonesia's Economic Growth

2022 ◽  
Vol 4 (1) ◽  
Author(s):  
Faridsky Faridsky ◽  
Syarwani Canon ◽  
Boby Rantow Payu
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rates ◽  
Interest Rates ◽  
Secondary Data ◽  
Analysis Model ◽  
Short Term ◽  
Indicator Variables ◽  
The Impact

This study aims to determine the impact of monetary policy and FDI on economic growth and discuss it. The monetary indicator variables used are inflation, interest rates and exchange rates. The data used in this study are secondary data in 1990-2019 sourced from data from the Central Bureau of National Statistics and the World Bank. The analysis model in this study uses Multiple Linear Regression with the Error Correction Model (ECM) analysis model. The results of the analysis show that in the long term monetary variables (inflation, interest rates and exchange rates) have a significant effect on economic growth. And in the short term FDI has a significant effect on economic growth. It is concluded that monetary variables (inflation, interest rates and exchange rates) are the main variables that affect economic growth in the long and short term.

scholarly journals Dampak ASEAN-China free trade agreement (ACFTA) terhadap pertumbuhan ekonomi Indonesia

2019 ◽  
Vol 15 (1) ◽  
pp. 1-14
Author(s):  
Azza Ayullah Kusuma
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Free Trade Agreement ◽  
Secondary Data ◽  
Trade Agreement ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Impact

The purpose of this study investigates the impact of ACFTA, Indonesian trade, the exchange rate on economic growth in Indonesia. The data used secondary data during 1997-2016 were sourced from UNCOMTRADE, ASEAN Statistics, and World Bank. The method used is a quantitative approach with vector error correction model (VECM). The findings of this study in the long run show that Indonesian trade, ACFTA has a positive and significant effect on economic growth, while the rupiah exchange rate variable has a negative and significant effect on economic growth

scholarly journals Financial inclusion and it’s effect on poverty in Indonesia

2021 ◽  
Vol 16 (1) ◽  
pp. 97-108
Author(s):  
Thomas Andrian ◽  
Nurbetty Herlina Sitorus ◽  
Irma Febriana MK ◽  
Stefanus Willy Chandra
Keyword(s):  
Economic Growth ◽  
Random Effect ◽  
Random Effect Model ◽  
Secondary Data ◽  
Poverty Rate ◽  
Financial Inclusion ◽  
Analysis Method ◽  
Macroeconomic Variables ◽  
Effect Model ◽  
The Impact

This study aims to analyze and determine the impact of Financial Inclusion in Indonesia and other macroeconomic variables on poverty rate in Indonesia. This study uses secondary data. Analysis method with the Random Effect Model (REM) approach. The results of this study indicate that the variable Bank Service Offices per 1,000 km2 , Ratio of DPK, Ratio CRD have a negative and significant effect on poverty rate in 33 provinces in Indonesia in 2014-2018, and Unemployment Rate (UMP) has a positive and significant effect on poverty rate in 33 provinces in Indonesia in the 2014-2018 period. However, the variable Economic Growth and Inflation (INF) did not have a significant effect on poverty in 33 provinces in Indonesia in the 2014-2018 period. Measuring this dimension is still difficult to do and currently several international institutions were concerned about the development of financial inclusion. Keywords: Financial inclusion, Poverty rate, Economic growth

scholarly journals THE IMPACT OF ISLAMIC MONETARY OPERATIONS AND AGGREGATE FINANCING ON ECONOMIC GROWTH IN INDONESIA (2010-2020)

2021 ◽  
Vol 7 (2) ◽  
pp. 185
Author(s):  
Adinda Madani ◽  
Tika Widiastuti
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Negative Relationship ◽  
Secondary Data ◽  
Open Market ◽  
Vector Error Correction ◽  
Analysis Technique ◽  
Economic Developments ◽  
Long Term Impact ◽  
The Impact

Islamic monetary operation policies are regulated to increase the effectiveness in facing economic developments, especially the monetary sector. The working mechanism of the Islamic monetary operation up to its impact on the development of the national economy illustrates the monetary policy transmission carried out by Bank Indonesia. The purpose of this study is to analyze the effects of Bank Indonesia Sharia Certificate (SBIS), Bank Indonesia Sharia Deposit Facility (FASBIS), Sharia Interbank Money Market (PUAS), and aggregate financing on Indonesia's economic growth in the period 2010 to 2020. This research method uses a quantitative approach with the analysis technique Vector Auto Regression (VAR) or Vector Error Correction Model (VECM) to see the long-term impact and shock response on certain variables. Using secondary data on the variables, it is obtained from the Indonesian Economic and Financial Statistics Bank Indonesia (SEKI-BI) and the Central Statistics Agency (BPS) for the period January 2010 to December 2020. This study found that the SBIS variable has a negative relationship with GDP. Meanwhile, the variables FASBIS, PUAS, and aggregate financing have a positive relationship with GDP. For the future, it can be used as input and consideration in policy making that will be determined in optimizing Islamic monetary policy in Indonesia. Further research that will discuss this topic should use Islamic monetary instruments that are more complete than Islamic open market operations and sharia standing facilities. As well as comparing with conventional monetary operation instruments as a comparison for Islamic monetary.

scholarly journals Rewolucja technologiczna a konkurencja w sektorze finansowym

Studia BAS ◽  
2020 ◽  
Vol 3 (63) ◽  
pp. 43-59
Author(s):  
Janina Harasim
Keyword(s):  
Mobile Technology ◽  
Rapid Development ◽  
Market Value ◽  
Financial Sector ◽  
Modern Technology ◽  
Financial Inclusion ◽  
Barriers To Entry ◽  
Long Term Impact ◽  
The Impact

The rapid development of modern technology and the increasing number of FinTechs can bring new competition challenges to incumbents. First, the author identifies the most important technologies implemented in the financial sector, such as artificial intelligence, machine learning, APIs, cloud computing, mobile technology and DLT. Next, she analyses BigTechs’ customer-centric platform-based business model and its impact on competition in the financial sector. The expansion of BigTechs into finance should lower the barriers to entry by reducing information and transaction costs, and thereby enhance financial inclusion. However, the long-term impact could be negative as BigTechs can exploit their market power to increase user switching costs and/or to exclude potential competitors. The impact of smaller FinTechs on competition seems to be more beneficial as they rather collaborate than compete with incumbents (especially with banks) while bank – FinTech alliances aim at improving the prospects and the market value of both FinTechs and banks.

scholarly journals External Debt and Economic Growth in Nigeria

2019 ◽  
pp. 1-6
Author(s):  
OBAYORI, Joseph Bidemi ◽  
KROKEYI, Wisdom Selekekeme ◽  
KAKAIN, Stephen
Keyword(s):  
Economic Growth ◽  
Generalized Method Of Moments ◽  
External Debt ◽  
Unit Root Test ◽  
Secondary Data ◽  
Debt Management ◽  
Stationarity Test ◽  
Kpss Unit Root Test ◽  
The Impact

External credits have been received from various sources including bilateral and multilateral arrangements but the country’s debt is a source of worry since the projects for which these loans were contracted cannot finance the credit facilities. This paper focused on the impact of external debt on economic growth in Nigeria within the period of 1980 to 2016. Thus, secondary data on gross domestic product and external debt were sourced from CBN statistical bulletin and debt management office fact book. The econometric method of Generalized Method of Moments(GMM) test was used. Priori the GMM test is the Kwiatkowski, Phillips, Schemidt and Shin, (KPSS) unit root test to ascertain the stationarity of the variables. Based on the empirical results; the KPSS stationarity test for each of the series showed that all the variables were stationary at order one as their respective LM statistics was less than the critical value at 5%. The GMM test shows that external debt and economic growth has positive and significant relationship with R2 of 54 percent. Therefore, to achieve long-term solution to the problem of external debts burden, government should stimulate domestic production to liberate the Nigerian economy from the shackles of wants and excessive dependence on external economics, which build up debt. Also, government should avoid unnecessary and unproductive borrowing that will serve as a leakage to the economy. This to a large extent will enhance the growth of the Nigerian economy.

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