scholarly journals Effect of Macroeconomic Factors on The Small-Medium Enterprises Loans

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Adhisty Mohammad Khariza ◽  
Arintoko Arintoko ◽  
Suprapto Suprapto
Keyword(s):  
Panel Data ◽  
Interest Rate ◽  
Time Series Data ◽  
Series Data ◽  
Macroeconomic Factors ◽  
Interest Rate Policy ◽  
Credit Demand ◽  
The Government ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Small-medium enterprises (SMEs) are the main pillar of the Indonesian economy. Based on 2016’s Economic Census, most businesses in Indonesia are SMEs, while SMEs absorb the majority of the workforce. The empowerment of SMEs is one way to improve the economy. To empower the SMEs sector, the Indonesian government launched the Kredit Usaha Rakyat (KUR) since 2007. The lasts policy is the provision of the mild interest rate for KUR since 2016. The hope is that with a mild interest rate, SMEs can get affordable financing access so they can be the driving force of the economy. However, credit demand is not only influenced by interest rate but other macroeconomic factors such as Gross Domestic Product and inflation. Also, this study will look at how development disparities between the West Indonesia Region and East Indonesia Region affect credit demand. This research is intended to see the effect of macroeconomic factors on Small-medium enterprises loans. Source of data is taken from Indonesia Badan Pusat Statistik. Panel data use 2011-2018 time-series data and 33 provinces cross-section data are used to investigate the relationship of SMEs’ Loans with these macroeconomic factors. The result show that Interest Rate, GRDP, and Inflation, effect on SMEs Loans in a respectively different manner. However, the development disparities between West Indonesia Region and East Indonesia Region has no significant effect on SMEs’ loans. The study concludes that macroeconomic activities are important indicators not only the interest rate. So, the government should not only focus on interest rate policy but also other macroeconomic factors. Keyword: Macroeconomic Factors, SMEs’ Loan, Kredit Usaha Rakyat (KUR), Panel Data

scholarly journals THE INFLUENCE OF SMALL AND MEDIUM ENTERPRISE GROWTH, INVESTMENT, AND LABOR ON ECONOMIC GROWTH IN BATAM CITY

2020 ◽  
Vol 9 (1) ◽  
pp. 31
Author(s):  
Intan Utna Sari ◽  
Asron Saputra
Keyword(s):  
Economic Growth ◽  
Time Series Data ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Series Data ◽  
Analysis Model ◽  
The Government ◽  
Medium Enterprises

One of the important benchmarks in determining the success of economic development is economic growth. The role of the government in achieving development success is to determine the direction of development policies and to achieve these development targets a good development plan is needed to realize stable economic growth in order to improve people's welfare, namely by increasing Small and Medium Enterprises, Investment and Manpower. This study aims to determine the simultaneous and partial effect of Small and Medium Enterprises, Investment and Labor on the economic growth of Batam City. The data source is secondary data using panel data consisting of time series data for three years and cross section data of nine districts which resulted in 45 observations. The analysis technique used to solve the problem in this study is the multiple linear regression analysis model. The results of this study indicate that in terms of small and medium enterprises, investment and labor have a significant effect on economic growth in Batam City. This indicates that the number of SMEs (Small and Medium Enterprises), Investment and Manpower in Batam City can determine the level of economic growth in Batam City. This is because SMEs, investment and labor are activities that can produce goods or services. Partially Small and Medium Enterprises, Investment and Labor have a positive and significant effect on economic growth in Batam City, meaning that if the number of Small and Medium Enterprises, Investment and Labor is increased, economic growth will also increase.

Development and Terrorism in Nigeria: Co-Integration and Causality Analysis of Macroeconomic Factors

2018 ◽  
Vol 2 (1) ◽  
pp. 1-33
Author(s):  
Emmanuel O. Okon
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Trade Openness ◽  
Private Investment ◽  
Series Data ◽  
Causality Analysis ◽  
Macroeconomic Policies ◽  
Macroeconomic Factors ◽  
The Government ◽  
Adf Test

This paper is a cointegration and causality analysis of macroeconomic factors and terrorism in Nigeria using time series data spanning between 1970 and 2016. The stochastic characteristics of each time series was examined using Augmented Dickey Fuller (ADF) test. The result reveals that LOG(GOVX), LOG(INTR), POLX, DLOG(GDPC) and DLOG(OPEN) were in line with the apriori expectation. With this development, some recommendations were made amongst which are that trade openness rate should be all time kept at peak benchmark by adopting tight trade openness while strategic macroeconomic policies should be instituted in order to encourage domestic private investment to enhance the growth of the economy. Nigerian political system has to be stabilized and the government should step up its intelligence gathering capacity as well as training security agents to forcefully combat terrorist group.

scholarly journals Determinants of Equity Share Price Movement: Evidence From the Nigerian Banking Industry (2000 – 2014)

2021 ◽  
Vol 12 (1) ◽  
pp. 319
Author(s):  
Akan David Chucks ◽  
Ighosewe Enaibre Felix ◽  
Sunny Oteteya Temile
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Time Series Data ◽  
Banking Industry ◽  
Market Price ◽  
Share Price ◽  
Series Data ◽  
Price Movement ◽  
Ex Post ◽  
The Government

Profit maximization is the primary focus of investors. The banking industry is a veritable sector for investment, however, understanding the determinants of profitability is paramount as it assists investors to know where their money should go. This study, therefore, investigates the influence that Earnings per share (EPS) and Non-Financial factors namely: inflation, exchange rate, and interest rate have on share price movement. The Ex-post factor was adopted as the research design. The data on EPS was collected from the Central Bank of Nigeria (CBN), Factbook, and the financial reports of the selected banks. The data on the Interest rate, Inflation, and Exchange Rate were collected from the Bulletin of CBN. The time-series data were diagnosed using the Unit root test; they were detrended where necessary to avoid a spurious result. The data were then analyzed using multiple regression. Also, Variance inflation factors (VIF) were engaged to test for the multicollinearity of the selected variables; while a heteroskedasticity test was carried out for a result free of heteroskedasticity. The outcome from the analysis displayed a positive but insignificant relationship between EPS and the market price of shares (MPS;); The study also revealed a negative and significant relationship between Inflation share price; while Interest Rate is insignificantly and negatively influencing the share price. Finally, Exchange Rate showed a significant influence on the share price. The researcher, therefore, recommends among others the need for Nigerian listed Banks to endeavor to improve on their EPS as this will increase their share price even though it won't be significant. Inflation displayed a negative and significant effect on the share prices of the quoted Banks in Nigeria; policies that will reverse the geometric rise in the inflation presently experienced in Nigeria should be enacted by the Government. 

scholarly journals An Empirical Assessment of the Effect of Taxes and Interest Rate on Economic Growth in Jordan: An Application of Dynamic Autoregressive-Distributed Lag

2020 ◽  
Vol 11 (3) ◽  
pp. 92
Author(s):  
Bashar Younis Alkhawaldeh ◽  
Suraya Mahmood ◽  
Aminu Hassan Jakada
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Time Series Data ◽  
Series Data ◽  
Negative Effects ◽  
Distributed Lag ◽  
Long Run ◽  
Capital Ratios ◽  
The Government ◽  
The Interest Rate

This study aims to examine the effect of taxes and interest rate on economic growth in Jordan by employing the time series data from 1970-2019. Furthermore, this study applies the Augmented Dickey-Fuller, Phillips-Perron, Saikonen and Lütkepohl and Zivot-Andrews test of unit root. Moreover, the study uses cointegration test developed by Gregory and Hansen to investigate the long-run relationship and the dynamic autoregressive distributive lags were used for the estimation result. The long run and short-run estimates reveal the positive and negative effects of taxes and the interest rate on economic growth respectively. While the 1997 Asian financial crisis and 2015 food crisis show a negative effect on economic growth. Based on the findings, the study recommends that the government authorities in Jordan should lower the interest rate that will increase the investment in order to have faster economic growth. The government should urgently plan to broaden the tax base to stimulate economic growth in Jordan. Regulators should encourage banks to start raising capital immediately to strengthen capital ratios well above prudential norms, and prepare schemes for public recapitalization and, where appropriate, public purchases of non-performing assets. The next policy fulfils the government's need to enhance agricultural productivity through better technology to ensure long-term food security and reduce poverty, as well as help to boost economic growth.

scholarly journals INTEREST RATE, MONEY SUPPLY AND GROWTH OF MORTGAGE FINANCING AMONG COMMERCIAL BANKS IN KENYA

2021 ◽  
Vol 6 (2) ◽  
pp. 1-11
Author(s):  
Chanzu Luyali ◽  
Julius Bichanga ◽  
M Gekara
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Commercial Banks ◽  
Time Series Data ◽  
Negative Impact ◽  
Model Specification ◽  
Series Data ◽  
Unique Contribution ◽  
The Government

Purpose: The purpose of this study was to investigate the effects of interest rate and money supply on the growth of mortgage financing among Commercial banks in Kenya. Materials and methods: The study adopted a descriptive research design. The population contained 35 loan lending commercial banks over a period between 1985 and 2019. Secondary data was used from desired financial statements available to the public of the singular commercial banks and other posted reports of financial institutions and establishments in conformity with the study. Time-series data were analyzed using STATA version 13 software, regression analysis and model specification tests. The hypothesis was tested using the multiple regression approach a significance level of 0.05 was used. Results: The study found that interest rate (coef= -0.0822, p= 0.007) and money supply (coef= 0.548, p= 0.00) have significant effects on the growth of mortgage financing among Kenyan commercial banks. Unique contribution to theory, practice and policy: Kenya's central bank should put in place mechanisms to guarantee that interest rates and money supply do not have adverse impacts on bank mortgage financing. The government should guarantee currency stability since currency fluctuations may have a negative impact on commercial bank mortgage borrowing. The classical theory is therefore relevant in our research since interest rates impact mortgages when capital demand increases. The quantity theory of money demand also holds that individuals want cash based on the transactions they need.

scholarly journals PENGARUH FAKTOR – FAKTOR EKONOMI TERHADAP INFLASI DI INDONESIA PASCA-KRISIS KEUANGAN

2017 ◽  
Vol 21 (2) ◽  
pp. 73-84
Author(s):  
Jechlien Melinda Reawaruw
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Financial Crisis ◽  
Money Supply ◽  
Time Series Data ◽  
Least Square ◽  
Series Data ◽  
Negative Effect ◽  
The Government ◽  
Positive Effect

This study aimed to identify the influenceof Interest Rate, Money Supply, and Exchange Rate to inflationin Indonesia after Financial Crisis 2008 with quantitative approach and analyzed using OLS (Ordinary Least Square). Data Methods in this research used time series data in the period 2008:1 until 2015:2. The result of this research indicate that Interest Rate, Money Supply, and Exchange Rate simultaneously effect the inflationin Indonesia after Financial Crisis 2008. Interest Rate has a positive effect 2.755885%, Money Supply has a positive effect 1.28E-06%, and Exchange Rate have a negative effect 0.000841%. Bank Indonesia as an institution that is responsible for determining the inflatin target has a very important role and coordinate with the government in implementing fiscal policy and monetary policy appopriately.

scholarly journals Fiscal Stability and Macroeconomic Environment in Nigeria: A Further Assessment

2021 ◽  
Vol 17 (2) ◽  
pp. 53-66
Author(s):  
Bashir Olayinka Kolawole
Keyword(s):  
Exchange Rate ◽  
Structural Breaks ◽  
Time Series Data ◽  
Causal Effect ◽  
Series Data ◽  
Macroeconomic Factors ◽  
Considerable Uncertainty ◽  
Short Run ◽  
The Government ◽  
Macroeconomic Environment

This paper examines the relationship between fiscal stability and macroeconomic environment in Nigeria using time series data covering the period 1981-2019. As Nigeria’s debt appears excessive amid macroeconomic imbalance, different concerns are raised about the capacity of the government to repay the debt. In this regard, several studies are conducted on the sustainability of the country’s debt. But then, as a long-run analysis, assessment of debt sustainability is prone to considerable uncertainty and large margins of error. Thus, the relevance and need for a short-run analysis which serves as the basis for assessing fiscal stability. In the process, while multiple structural breaks are revealed in the total revenue, exchange rate, and total debt series, a feedback causal-effect is affirmed between fiscal stability and interest rate. Consequently, the short-run analysis establishes negative impacts from each of debt and exchange rate, as against positive effect from revenue on fiscal stability. As such, given a mixed relationship between fiscal stability and certain macroeconomic factors, an improved revenue collection is suggested with reduction in borrowing.

Investigating the nexus between Non-Performing Loans in the Nigerian Banking System and Lending to Micro-Small Medium Enterprises

2018 ◽  
Vol 9 (06) ◽  
pp. 20778-20791
Author(s):  
Umoren, Aniefiok Akpan ◽  
Eyo, Emmanuel Okon ◽  
Akpan, Sunday Brownson
Keyword(s):  
Emerging Economies ◽  
Time Series Data ◽  
Small And Medium Enterprises ◽  
Banking System ◽  
Series Data ◽  
Economic Activities ◽  
Economic Agents ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
Nigerian Banking

Micro-Small and Medium Enterprises (MSMEs) constitute vital ingredients for the lubrication of the development process of any economy. Therefore, Micro-Small and Medium Enterprises are bedrocks of emerging economies as they exact vital roles in promoting and sustaining growth and development.  However, in Nigeria MSMEs are facing myriad of challenges and difficulties in funding their activities. Rising trends in Non-performing loans (NPLs) adversely affected availability of loans and advances to economic agents in the Nigerian economy thereby constraining financial intermediation and economic activities hence growth. The study investigated the nexus existing between NPLs in the Nigerian banking system and lending to MSMEs sub-sector in Nigeria from 1981-2015. Time series data used in the study were collected from annual statistical bulletin of the Central Bank of Nigeria (CBN). These data were subjected to descriptive and inferential methods. The results of the graphical presentations indicated irregular fluctuations in NPLs. The graphs indicated positive trends in respect to lending to MSMEs and the productivity of MSMEs. The estimated OLS results showed negative nexus between non-performing loans and lending to MSMEs. This negative nexus led to concomitant low MSMEs productivity in Nigeria. The study recommended that CBN should increase its financial surveillance over the sectors and also ensure timely resolutions of the NPLs challenges CBN should increase arrays of financial intervention that would address paucity in funds in the MSMEs sub-sector  

scholarly journals Analysis of the Influence of Interest Rate, Rupiah Exchange Value, Household Consumption, and Import on Inflation in Indonesia Period 2010.Q1 - 2018.Q4

2020 ◽  
pp. 81-91
Author(s):  
Jusmer Sihotang ◽  
Nancy Nopeline
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Time Series Data ◽  
Household Consumption ◽  
Series Data ◽  
Multiple Regression Equation ◽  
Exchange Value ◽  
The Government ◽  
The Interest Rate

This study aims to analyze the effect of the interest rest, the exchange rate of the rupiah, and imports on the inflation in Indonesia. The study used multiple regression equation by using secondary time series. Data from 2008.Q1-2018.Q4. The results showed that the interest rate of SBI, exchange rate of rupiah against US Dollar, private sector household consumption, and the total imports of Indonesia had a simultaneous impact on the inflation in Indonesia. However, partially only the interest rate of SBI and total imports of Indonesia had a significant impact on the inflation in Indonesia, respectivelyon the level ofα = 1% and α= 5%. These results mean that the increasing of interest rate of SBI and Indonesian import could impact the inflation rate in Indonesia. Based on the findings, the policy to control the inflation in Indonesia was Bank Indonesia as the holder of monetary policy needs to oversee the determination of business credit interest rate (micro, retail, and corporate), by commercial banks in order to maintain the rate on the stable and low levels. In addition, the government needs to compose the policy to reduce the dependence on imported goods by providing various facilities and incentives to increase the interest of entrepreneurs to invest in industries that produce imported substitute goods.

Transport infrastructure of the Rostov Oblast: Problems and prospects for development in the context of national projects implementation

2020 ◽  
Vol 19 (6) ◽  
pp. 1015-1034
Author(s):  
O.Yu. Patrakeeva
Keyword(s):  
Time Series Data ◽  
Mutual Influence ◽  
Rostov Oblast ◽  
Transport Infrastructure ◽  
Series Data ◽  
Cointegration Tests ◽  
Level Of Economic Development ◽  
Short Run ◽  
The Government ◽  
The Impact

Subject. The paper considers national projects in the field of transport infrastructure, i.e. Safe and High-quality Roads and Comprehensive Plan for Modernization and Expansion of Trunk Infrastructure, and the specifics of their implementation in the Rostov Oblast. Objectives. The aim is to conduct a statistical assessment of the impact of transport infrastructure on the region’s economic performance and define prospects for and risks of the implementation of national infrastructure projects in conditions of a shrinking economy. Methods. I use available statistics and apply methods and approaches with time-series data, namely stationarity and cointegration tests, vector autoregression models. Results. The level of economic development has an impact on transport infrastructure in the short run. However, the mutual influence has not been statistically confirmed. The paper revealed that investments in the sphere of transport reduce risk of accidents on the roads of the Rostov Oblast. Improving the quality of roads with high traffic flow by reducing investments in the maintenance of subsidiary roads enables to decrease accident rate on the whole. Conclusions. In conditions of economy shrinking caused by the complex epidemiological situation and measures aimed at minimizing the spread of coronavirus, it is crucial to create a solid foundation for further economic recovery. At the government level, it is decided to continue implementing national projects as significant tools for recovery growth.

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