scholarly journals An Analysis of the Monetary Transmission Mechanism of M&A, Greenfield FDI, Domestic Investment, and GDP Per Capita Growth: The Structural Vector Correction Model in Indonesia

2021 ◽  
Vol 14 (2) ◽  
pp. 29-42
Author(s):  
Albert Hasudungan ◽  
◽  
Andrey Hasiholan Pulungan ◽  
Keyword(s):  
Mergers And Acquisitions ◽  
Direct Investment ◽  
Transmission Mechanism ◽  
Gdp Per Capita ◽  
Monetary Transmission ◽  
Domestic Investment ◽  
Correction Model ◽  
Per Capita Gdp ◽  
Per Capita ◽  
Structural Vector

Purpose: The study aims to evaluate the different implications of mergers and acquisitions (M&A) and Greenfield foreign direct investment in the transmission mechanism effects on the growth of gross domestic product per capita (GDP per capita) in Indonesia. The origin of the study stems from past academic debates that contested whether Greenfield FDI or M&A bear more effect on the economic growth in emerging markets.

scholarly journals EFFECTS OF CROSS-BORDER MERGERS AND ACQUISITIONS ON GDP PER CAPITA AND DOMESTIC INVESTMENT IN TRANSITION COUNTRIES

2018 ◽  
Vol 19 (1) ◽  
pp. 124-137 ◽  
Author(s):  
Jelena ZVEZDANOVIĆ LOBANOVA ◽  
Davorin KRAČUN ◽  
Alenka KAVKLER
Keyword(s):  
Mergers And Acquisitions ◽  
Generalized Method Of Moments ◽  
Spillover Effects ◽  
Transition Countries ◽  
Gdp Per Capita ◽  
Structural Reforms ◽  
Domestic Investment ◽  
Cross Border ◽  
Per Capita ◽  
One Year

The study investigates the impact of cross-border mergers and acquisitions on GDP per capita and domestic investment in 22 European transition countries from 2000 to 2014 by using the system Generalized Method of Moments estimator. The main implications are that cross-border mergers and acquisitions have a negative effect on GDP per capita in the year of merger or acquisition, while their lagged level shows a positive impact. From long-term perspective, this type of FDI has negative and significant effect on GDP per capita. The results show that one-year lagged cross-border mergers and acquisitions positively affects domestic investment, suggesting that spillover effects of this type of investment can be expected not earlier than one year after the merger or acquisition. The value of this paper is that our results show how the advances in structural reforms enhance GDP per capita whereas their influence on domestic investment activity is insignificant. We found that there is insignificant impact of the relationship between overall structural reforms and cross-border mergers and acquisitions on GDP per capita and domestic investment both in short and long run. The originality of this study lies in investigation of the dynamic nature of cross-border mergers and acquisitions and their economic effects depending on the quality of structural reforms.

Film Production And Economic Performance: Should South Africa Invest In Movies?

2021 ◽  
Vol 4 (2) ◽  
pp. 125-144
Author(s):  
Andrew Phiri ◽  
Keyword(s):  
Foreign Direct Investment ◽  
Economic Performance ◽  
Government Spending ◽  
Capita Income ◽  
Direct Investment ◽  
Film Production ◽  
Domestic Investment ◽  
Per Capita Income ◽  
Long Run ◽  
Per Capita

The movie industry is increasingly recognised as a possible avenue for improving economic performance. This study focuses on film production and its influence on South African economic growth (per capita income and employment between 1970 and 2020). Our autoregressive lag distributive (ARDL) estimates on a loglinearised endogenous growth model augmented with creative capital indicate that the production of movies has no significant effects on long-run GDP growth, per capita GDP and employment. The baseline regressions find a short-run positive and significant influence of film production on per capita income and are devoid of long-run effects. However, re-estimating the regressions with interactive terms between movie production and i) government spending ii) foreign direct investment, improve the significance of film regression coefficients which all turn positive and significant, for government spending, and negative for foreign direct investment. Our results indicate that foreign investment crowds out domestic investment whilst government investment in movies is growth-enhancing.

scholarly journals Economic Activity and Pollution:The case of Indonesia 1967-2013

2017 ◽  
Vol 18 (2) ◽  
pp. 239 ◽  
Author(s):  
Mohammad Rofiuddin ◽  
Tito Aditya Perdana ◽  
Nugroho SBM
Keyword(s):  
Linear Regression ◽  
Environmental Pollution ◽  
Co2 Emissions ◽  
Significant Influence ◽  
Economic Activity ◽  
Quadratic Equation ◽  
Gdp Per Capita ◽  
Per Capita Gdp ◽  
Curve Method ◽  
Per Capita

Increased economic activity accompanied with environmental pollution. The objective of the study was to analyze the effect of per capita GDP on CO2 emissions and to prove the hypothesis of the Kuznets environment curve. Method for analyzing data by using multiple linear regression with quadratic equation. The results show that GDP per capita has a positive and significant influence on CO2 emissions, as well as the square GDP per capita has a negative and significant influence on CO2 emissions, so the Kuznets Environment Curve's hypothesis can be proven.

scholarly journals MONETARY TRANSMISSION MECHANISM UNDER DUAL FINANCIAL SYSTEM IN INDONESIA: CREDIT-FINANCING CHANNEL

2019 ◽  
Vol 4 (2) ◽  
pp. 251-278
Author(s):  
Reza Jamilah Fikri
Keyword(s):  
Monetary Policy ◽  
Error Correction ◽  
Financial System ◽  
Error Correction Model ◽  
Transmission Mechanism ◽  
Monetary Transmission ◽  
Correction Model ◽  
Monetary Transmission Mechanism ◽  
Financing Channel

The presence of Islamic and conventional banking in the dual financial system of Indonesia equally hold the role as financial intermediator which theoretically banks collect fund from the debitors to be distributed to creditors. However, along with the changing of time there has been a development in the financial industry, when financial deregulation occurs, where the role of providing credit is not only owned by the banks but also other financial institutions. As the result, banks are no longer considered as the center of financial intermediation but could be replaced by other financial instruments. This study aims to reconsider the role of banking as financial intermediation in the monetary transmission mechanism using three methodoligal approaches which  are Vector Autoregression and Vector Error Correction Model (VAR-VECM), Error Correction Model (ECM), and Autoregressive Distributed Lag (ARDL). The long-term results of ECM and VECM estimations both show that credit and finacing channel are still relevant to be employed in the monetary transmission mechanism after the development of financial sector and the change of monetary policy, yet only have an impact to economy and do not give effect to inflation. While the result of ARDL estimation indicates that none of the variables affect the  monetary policy objectives which means that credit and financing channel are considered to be getting weaker in the monetary transmission mechanism.   Keywords : Monetary Transmission Mechanism, Credit Channel, Dual Financial System JEL Classification: E51, E52, E58

scholarly journals PENGARUH PMA, PMDN, TPAK, PDRB PERKAPITA, PENGELUARAN PEMERINTAH TERHADAP DISPARITAS PENDAPATAN JAWA

2020 ◽  
Vol 3 (2) ◽  
pp. 21-34
Author(s):  
Lorentino Togar Laut ◽  
Arinda Sita Putri ◽  
Yustirania Septiani
Keyword(s):  
Economic Growth ◽  
Labor Force ◽  
Labor Force Participation ◽  
Foreign Investment ◽  
Government Spending ◽  
Gdp Per Capita ◽  
Domestic Investment ◽  
Economic Prosperity ◽  
Income Disparities ◽  
Per Capita

AbstrakDistribusi pendapatan di Pulau Jawa masih belum merata, pertumbuhan ekonomi di Pulau Jawa belum mampu mencapai kesejahteraan ekonomi yang merata. Sehingga penelitian ini bertujuan untuk mengetahui bagaimana pengaruh penanaman modal asing, penanaman modal dalam negeri, tingkat partisipasi angkatan kerja, PDRB perkapita, dan pengeluaran pemerintah terhadap disparitas pendapatan di Pulau Jawa tahun 2008-2018. Jenis data adalah data sekunder yang bersumber dari Badan Pusat Statistik Indonesia dan Badan Koordinasi Penanaman Modal. Analisis data menggunakan regresi data panel Eviews 7. Hasil penelitian menunjukkan bahwa penanaman modal asing, penanaman modal dalam negeri dan pengeluaran pemerintah tidak berpengaruh signifikan terhadap disparitas pendapatan di Pulau Jawa tahun 2008-2018. Sedangkan variabel tingkat partisipasi angkatan kerja, PDRB perkapita, berpengaruh signifikan terhadap disparitas pendapatan di Pulau Jawa tahun 2008-2018. Dari seluruh variabel berpengaruh secara simultan terhadap disparitas di Pulau Jawa tahun 2008-2018.Kata Kunci :  Disparitas pendapatan; Kesejahteraan Ekonomi; Pertumbuhan Ekonomi;AbstractThe distribution of income in Java Island is still uneven, economic growth in Java has not been able to achieve equitable economic prosperity. So this study aims to determine how the effect of foreign investment, domestic investment, labor force participation rate, GDP per capita, and government spending on income disparities in Java in 2008-2018. The type of data is secondary  data sourced from the Indonesian Central Bureau of Statistics and the Investment Coordinating Board. Data analysis used Eviews 7 panel data regression. The results showed that foreign investment, domestic investment and government spending did not have a significant effect on income disparities in Java in 2008-2018. Meanwhile, the variable of the level of labor force participation, GDP per capita, has a significant effect on income disparities in Java in 2008-2018. Of all the variables simultaneously influence disparities in Java in 2008-2018. Keywords :  Income disparity; Economic Prosperity; Economic growth;

scholarly journals The stock market capitalisation and financial growth nexus: an empirical study of western European countries

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Faris Alshubiri
Keyword(s):  
Foreign Direct Investment ◽  
Stock Market ◽  
Direct Investment ◽  
European Countries ◽  
Gdp Per Capita ◽  
Significant Relationships ◽  
Financial Growth ◽  
Per Capita ◽  
Western European ◽  
Market Capitalisation

AbstractThis study aimed to analyse the stock market capitalisation and financial growth nexus of Western European countries from 1989 to 2018 in order to understand the interactive relationship between the stock market and the economy to identify the specific financial market channels through which economic growth is managed. The pooled least square findings identified positive significant relationships between stock market capitalisation, foreign direct investment and stocks traded and financial growth, while negative and significant relationships were found between GDP per capita growth and inflation and financial growth. The fixed effect, random effect and pooled mean group models yielded the same results, indicating positive significant relationships between stock market capitalisation and stocks traded and financial growth, while the effect of foreign direct investment on financial growth was positive and insignificant. Finally, there were negative and significant relationships between GDP per capita growth and inflation and financial growth. The results from the quantile regression (tau = 0.10, 0.20, 0.30, 0.40 and 0.50) there were positive relationships between stock market capitalisation and stocks traded and financial growth for all percentiles, while there were negative relationships between GDP per capita growth and inflation and financial growth except at the 0.30 percentile; foreign direct investment also had a negative relationship to financial growth at the 0.30 percentile. Most variables were significant at a 1% significance level. However, inflation was insignificant at the 0.10 percentile, foreign direct investment was insignificant at the 0.20, 0.30, 0.40 and 0.50 percentiles, and stocks traded were insignificant at the 0.40 and 0.50 percentiles. All of the applied the diagnostic tests confirmed the robustness of the data. The main conclusion is that countries should minimise any regulatory obstacles to financial markets and protect the rights of shareholders. Furthermore, advanced financial systems should reduce the obstacles faced by companies in terms of external financing.

scholarly journals Sugarcane ethanol industry effects on the GDP per capita in the Center-South region of Brazil

2017 ◽  
Vol 15 (2) ◽  
pp. 183-200
Author(s):  
Carlos Eduardo Caldarelli ◽  
Márcia Azanha Ferraz Dias De Moraes ◽  
Pietro André Telatin Paschoalino
Keyword(s):  
Federal District ◽  
Econometric Models ◽  
Gdp Per Capita ◽  
Panel Data Models ◽  
Mato Grosso ◽  
Industry Effects ◽  
Per Capita Gdp ◽  
Demand Growth ◽  
Per Capita ◽  
Mato Grosso Do Sul

The demand growth for biofuels worldwide led to a significant increase in the Brazilian sugarcane ethanol industry from the 2000’s. This scenario affected specially the Center-South region of Brazil, which comprises the states of São Paulo, Paraná, Minas Gerais, Mato Grosso do Sul, Mato Grosso, and Goiás, as well as the Federal District of Brasília, because it surpasses all other regions of the country in terms of the production and production facilities. Therefore, the aim of this study is to quantify the sugarcane ethanol industry effects on the per capita municipal gross domestic product (GDP) in the Center-South region of Brazil, for the 2000-2012 period. To that end, we estimated two econometric models, using panel data models and quantile regression. The results show that sugar ethanol industry has an important effect on GDP per capita for the Center-South region municipalities, furthermore the effects are more intensive on the lowest municipalities levels of the per capita GDP, thus being able to provide support for making public policy.

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