scholarly journals An Empirical Analysis of Islamic Banking (IBs) Contribution to Indonesia’s Inclusive Growth

2021 ◽  
Vol 4 (SI) ◽  
Author(s):  
Muhammad Yusuf Ibrahim ◽  
Indra Indra
Keyword(s):  
Error Correction ◽  
Statistical Data ◽  
Descriptive Analysis ◽  
Islamic Banking ◽  
Inclusive Growth ◽  
Short Term ◽  
Correction Model ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag

The research is aim to attest and assess empirically the contribution of Islamic banking (IBs) on the inclusive growth in Indonesia. By taking a trial-stage method i.e. descriptive analysis to elaborate a statistical data, autoregressive distributed lag (ARDL) model to assess empirically the contribution in a long-term, and error correction model (ECM) to assess the contribution in a short-term empirically. The findings are, total deposits and total financing only contribute positively significant into GDP and gini ratio in a long-term, that similiar with the previous study. Then, a total financing contribute negatively to all indicators of inclusive growth in a long-term, but, its only significance on GDP and gini ratio. Means, it was contribute significantly to all indicators in a short-term.

scholarly journals Revisiting the effects of relevant factors on Pakistan's agricultural products export

2020 ◽  
Vol 66 (No. 12) ◽  
pp. 527-541
Author(s):  
Zaid Ashiq Khan ◽  
Mansoor Ahmed Koondhar ◽  
Noshaba Aziz ◽  
Uzair Ali ◽  
Liu Tianjun
Keyword(s):  
Error Correction ◽  
National Economy ◽  
Crop Production ◽  
Error Correction Model ◽  
Agricultural Products ◽  
Short Term ◽  
Correction Model ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag

Pakistan is an agriculture-based country, so the agricultural sector is known as the backbone of the national economy. Considering the national economy and the agricultural industry, it is necessary to focus on earnings through agricultural products export to improve the livelihood of local farmers. Therefore, the current study aimed to analyse the short-term and long-term factors affecting agricultural products export. The annual time series of 1976–2016 were collected from World Bank indicators, the Food and Agriculture Organization, and the Statistical Bureau of Pakistan. An autoregressive distributed lag, along with a vector error correction model, was employed. A cointegration test showed long-term associations between the selected variables. While the autoregressive distributed lag model confirmed the short-term correlation between area sown and crop production towards agricultural products export, there is no long-term relationship between the selected variables. In addition, the bidirectional correlation between employment in agriculture and agricultural products export was confirmed by the vector error correction model. Therefore, it is essential to increase agricultural production with the available natural resources to increase foreign earnings.

scholarly journals The Impact of Exchange Rate on Market Fundamentals: A Case Study of J-curve Effect in Vietnam

2017 ◽  
Vol 9 (1) ◽  
pp. 45 ◽  
Author(s):  
Nguyen Quang My ◽  
Mustafa Sayim ◽  
Hamid Rahman
Keyword(s):  
Exchange Rate ◽  
Error Correction ◽  
Trade Balance ◽  
Short Term ◽  
Correction Model ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
J Curve ◽  
Curve Effect

This study examines if there is an equilibrium relationship between gross domestic product (GDP), exchange rate fluctuation and trade balance in long-term and short-term in Vietnam. The results show that the short-term and long-term exchange rate fluctuations impact the trade balance in Vietnam; both ARDL (Autoregressive Distributed Lag) and ECM (Error Correction Model) methodologies implied that exchange rate has a statistically negatively impact on the trade balance. Particularly, Autoregressive distributed lag (ARDL) utilized to test the long -term impact, shows the trade balance deficit becomes worse when the REER (real effective exchange rate) increases. ECM (Error Correction Model) equation based on the long-term cointegration equation and impulse response, reveals that the domestic currency devaluation could not improve the trade balance, indicating that the J-curve effect does not hold on the dong, the currency of Vietnam.

scholarly journals KETERKAITAN INDIKATOR MONETER SYARIAH TERHADAP PENDAPATAN DOMESTIK BRUTO

2012 ◽  
Vol 1 (1) ◽  
Author(s):  
Yunie Fitriani ◽  
Roikhan Mochamad Aziz ◽  
Fitri Amalia
Keyword(s):  
Gross Domestic Product ◽  
Error Correction ◽  
Money Supply ◽  
Islamic Banking ◽  
Short Term ◽  
Correction Model ◽  
Independent Variables ◽  
Long Run ◽  
Short Run

The purpose of this research is to analyze in the short term and long term between the four independent variables including: the financing of Islamic banking, the Jakarta Islamic Index (JII), the Islamic Bank Indonesia certificates (SBIS), and the money supply (JUB) to gross domestic product (GDP). This research uses the test to notice any indications of Granger was awarded a long-term relationship and Error Correction Model to see the existence of a short-term relationship. The result shows that in the short-run only SBIS that have a short-run relationship to GDP. In the long-run all the independent variables can explain the long-run relationship to GDPDOI: 10.15408/sjie.v1i1.2595 

scholarly journals ANALYSIS OF INCLUSIVE GROWTH IN POVERTY, UNEMPLOYMENT AND INCOME INEQUALITY IN WEST SUMATERA PROVINCE: PANEL ERROR CORRECTION MODEL APPROACH

2020 ◽  
Vol 5 (1) ◽  
pp. 19
Author(s):  
Hasdi Aimon ◽  
Anggi Putri Kurniadi ◽  
Muhammad Kanzu Satrio
Keyword(s):  
Income Inequality ◽  
Error Correction ◽  
Cross Section ◽  
Government Spending ◽  
Error Correction Model ◽  
Inclusive Growth ◽  
Short Term ◽  
Correction Model ◽  
Education Investment

<p><em>This study investigates the determinants of inclusive growth in poverty, unemployment and income inequality in West Sumatera Province. This study uses time series from 2011-2017, while the cross section is 12 districts and 7 cities, which were analyzed by the panel error correction model. There are several important findings in this study. First, the results of the analysis for the long term are that inclusive growth in poverty is positively and significantly affected by health, education, investment and government spending. Meanwhile, inclusive growth in unemployment and income inequality is negatively and significantly affected by health, education, investment and government spending. Second, the results of the analysis for the short term are investment and government spending disrupts the balance of inclusive growth in poverty. Meanwhile, education and investment disrupt the balance of inclusive growth in unemployment and income inequality. Third, there is a long term balance on inclusive growth in poverty, unemployment and income inequality. Therefore, it is highly recommended for districts/cities governments in West Sumatera Province to intervene in the independent variables that have significant and disturbing effects in the short term, so that conditions of inclusive growth in poverty, unemployment and income inequality can be achieved optimally.</em></p><p><em><br /></em></p><p><em><em>Studi ini menyelidiki faktor-faktor penentu </em><em>pertumbuhan inklusif pada kemiskinan, pengangguran dan ketimpangan pendapatan di Provinsi Sumatera Barat. Penelitian ini menggunakan deret waktu dari 2011-2017, sedangkan cross section adalah 12 kabupaten dan 7 kota, yang dianalisis dengan metode panel error correction model. Terdapat beberapa temuan penting dalam penelitian ini. Pertama, hasil analisis untuk jangka panjang adalah  pertumbuhan inklusif pada kemiskinan dipengaruhi secara positif dan signifikan olehkesehatan, pendidikan, investasi dan pengeluaran pemerintah.Sedangkan, pertumbuhan inklusif pada pengangguran dan ketimpangan pendapatan dipengaruhi secara negatif dan signifikan oleh kesehatan, pendidikan, investasi dan pengeluaran pemerintah.Kedua, hasil analisis untuk jangka pendek adalah investasi dan pengeluaran pemerintah menganggu keseimbangan pertumbuhan inklusif pada kemiskinan. Sedangkan, pendidikan dan investasi menganggu keseimbangan pertumbuhan inklusif pada penganguran dan ketimpangan pendapatan. Ketiga, terdapat keseimbangan dalam jangka panjang terhadap pertumbuhan inklusif pada kemiskinan, pengangguran dan ketimpangan pendapatan meskipun dalam jangka pendek tidak mengalami keseimbangan.Oleh karena itu, sangat dianjurkan bagi pemerintah kabupaten/kota di Provinsi Sumatera Barat untuk melakukan intervensi pada variabel independent yang berpengaruh signifikan dan menganggu dalam jangka pendek, sehingga kondisi pertumbuhan inklusif pada kemiskinan, pengangguran dan ketimpangan pendapatan dapat tercapai dengan optimal.</em></em></p>

scholarly journals Non Cash Payment and Demand for Real Money in Indonesia

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Wasiaturrahma Wasiaturrahma ◽  
Yuliana Tri Wahyuningtyas ◽  
Shochrul Rohmatul Ajija
Keyword(s):  
Error Correction ◽  
Credit Card ◽  
Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Real Money ◽  
On Demand ◽  
Cash Payment ◽  
The Impact

The study analyses the impact of non-cash payment on demand for real money in Indonesia from 2010 to 2015. Utilizing the Error Correction Model (ECM), the results reveal that the use of both debit and credit card influence the demand for real money in the long term. Moreover, debit card also significantly affects the demand for real money in the short term, while the use of credit card does not have the implication.

scholarly journals DETERMINAN ALIRAN FOREIGN DIRECT INVESTMENT DI INDONESIA (PENDEKATAN MODEL DUNNING)

Media Trend ◽  
2016 ◽  
Vol 11 (2) ◽  
pp. 141
Author(s):  
Claudia TeziaJanuarita Putri ◽  
Regina Niken Wilantari
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Descriptive Analysis ◽  
Capital Inflow ◽  
Economic Shocks ◽  
Short Term ◽  
Economic Openness ◽  
Correction Model ◽  
Investment Opportunities

<p><em>Traffic capital across countries is one of  investment opportunities from domestic and abroad to stimulate the economic growth  of developing countries</em><em>. Compared to other forms of capital, Foreign Direct Investment is the flow of capital is long-term and relatively not as vulnerable to economic shocks. The aim of this study is to see the performance of FDI movement as a capital inflow in Indonesia and to explores whether factors that affect FDI using Dunning’s ecletic model. </em><em>This study focused on two basic analysis, descriptive analysis and quantitative analysis using the Error Correction Model (ECM). </em><em>The results of short-term ECM estimate shows that FDI is influenced by inflation and the degree of economic openness. Furthermore, the result in the long term ECM estimate show that only variable that infrastructure does not significantly affect the movement of FDI in Indonesia. </em></p>

scholarly journals Faktor Eksternal dan Internal yang Mempengaruhi Profitabilitas Bank Syariah di Indonesia

2018 ◽  
Vol 13 (1) ◽  
pp. 51
Author(s):  
Yudhistira Ardana
Keyword(s):  
Error Correction ◽  
Commercial Bank ◽  
External Factors ◽  
Internal Variables ◽  
Business Unit ◽  
Short Term ◽  
Correction Model ◽  
Monthly Data ◽  
Short And Long Term

This study aims to determine the influence of external factors (inflation and BI rate) and internal (CAR, REO, FDR, and NPF) on the level of profitability of sharia banks in Indonesia as measured by ROA. The data used in this study is the data of Sharia Commercial Bank and Sharia Business Unit in Indonesia from 2011 to 2018 using monthly data. This research uses error correction model which is commonly abbreviated as ECM. The results show that the external and internal variables together significantly influence the ROA variable. Individually, CAR, NPF and Inflation variables have no significant effect on ROA, while FDR and REO variables in both short and long term have significant effect on ROA. BI rate in this study has no significant effect on ROA in the short term, but has a significant effect on ROA variable in the long term

scholarly journals ANALISIS HARGA SAHAM INDEX KOMPAS 100 DENGAN PENDEKATAN ERROR CORRECTION MODEL

2021 ◽  
Vol 4 (1) ◽  
pp. 406-414
Author(s):  
Amir Hamzah
Keyword(s):  
Error Correction ◽  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Financial Statements ◽  
Error Correction Model ◽  
Short Term ◽  
Correction Model ◽  
Positive Effect

The purpose of this research is to analyze the short term and long term relationship between ROI, EPS, PER ,inflation, SBI, exchange rate,and GDP on Stock Price. The data in this research is company financial statements which included Compas 100 Index on the Indonesia Stock Exchange. statistical analysis in this research used stasionarity test, The Classical Assumptions Test, Cointegration Test, Error Correction Model Test. This research found that partially ROI, EPS, PER variables a positive effect on stock prices in the short term and long term, KURS and SBI a positive effect on stock prices in the short term, but there is no effect in the long term, inflation and GDP do not affect the stock price both in the short term and long term. Simultaneously affected the stock prices significantly affect on stock price both in the short term and long term.

scholarly journals DAMPAK PEMBANGUNAN EKONOMI, PENGELUARAN RUMAH TANGGA, DAN KETERBUKAAN PERDAGANGAN TERHADAP KONSUMSI ENERGI FINAL DI INDONESIA

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Bambang Priyo Cahyono ◽  
Yusro Hakimah
Keyword(s):  
Energy Consumption ◽  
Trade Openness ◽  
Value Added ◽  
Short Term ◽  
Final Consumption ◽  
Final Energy ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Final Energy Consumption

This study investigates the impact of economic growth on three main development sectors, household final consumption expenditure, and trade openness towards the growth of final energy consumption in Indonesia using annual data for the period 1972-2016. We applied autoregressive distributed lag (ARDL) procedures which consist of stationarity test, cointegration test, as well as estimation the short-term and long-term relationships. The cointegration test revealed existence cointegration<br />relationship among the variables in the model. In the short-term and long-term model, our results indicated that the growth of value-added in agriculture sector and industry sector, household final consumption expenditures, and trade openness in the short-term and long-term have a significant effect toward final energy consumption in Indonesia, while the growth of value-added in the service sector only given a short-term effect toward final energy consumption in Indonesia. Based on these<br />results, it can be concluded that sustainable economic development in Indonesia needs to be accompanied by the development of new and renewable energy in order to fulfil domestic energy supply which is predicted to continue to increase rapidly in the future.<br />Keyword : final energi consumption, economic development, household final consumption expenditure, trade openness, autoregressive distributed lag modeling<br />JEL Classification : D1, E21, F14, O13, Q43.

scholarly journals Nexus between Agriculture and Unemployment in Nigeria

2019 ◽  
pp. 1-13
Author(s):  
Oluwafemi S. Enilolobo ◽  
Saidi A. Mustapha ◽  
Onyeka P. Ikechukwu
Keyword(s):  
Error Correction ◽  
Granger Causality ◽  
Unit Root ◽  
Unit Root Test ◽  
Model Estimation ◽  
Correction Model ◽  
Agriculture Sector ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Bounds Test

This study examined the impact of agriculture sector growth on unemployment level as well as the direction of causality between agricultural sector output and unemployment level in Nigeria. Secondary annual time series data between 1981 and 2016 were used for the study. Data on unemployment rate, agriculture sector output, public expenditure and industrial output were obtained from the Central Bank of Nigeria’s statistical Bulletin while data on FDI and population growth were obtained from the World Bank World Development Indicators. The data were analyzed using ADF (Augmented Dickey Fuller Test) unit root test, Autoregressive distributed lag Bounds test of cointegration, Autoregressive distributed lag error correction model estimation and Granger causality. The results of ADF unit root test revealed variables were at different orders of integration, the ARDL bounds test revealed cointegration between variables, and the Autoregressive distributed lag error correction model estimation revealed that change in agriculture output in the current period is negative and significant for current unemployment level in Nigeria, while the change in one period lagged agriculture output was positive and significant for current unemployment level in Nigeria. Also the error correction term indicated that about 74.10 percent of the disequilibrium in the system in the previous year would be corrected in the current year. Granger causality test results revealed bi-directional causality between agriculture output and unemployment level in Nigeria. The study recommends that the Nigeria government should using strategic policies targeted at boosting agriculture output such as increasing access to land for peasant rural farmers, investments in agricultural research, and so on, seek to boost agriculture output in order to reduce unemployment in Nigeria. Further, the Nigeria government should ensure that agriculture sector development policies are consistent with the objective of reducing unemployment in Nigeria.

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