scholarly journals HUMP-SHAPED RELATION IMPLEMENTATION IN EAST JAVA

2020 ◽  
Vol 18 (1) ◽  
pp. 186-198
Author(s):  
Priyo Utomo ◽  
Anton Budi Satria ◽  
Novi Sri Sandyawati ◽  
Noor Farid ◽  
Farasandya Amalia Hapsari
Keyword(s):  
Economic Growth ◽  
Fiscal Decentralization ◽  
Least Square Method ◽  
Fixed Effect Model ◽  
Least Square ◽  
Government Investment ◽  
Writing Ability ◽  
Effect Model ◽  
Hump Shape ◽  
Positive Effect

This study aims to analyze the hump-shaped relation of regions in East Java Province. The proof of hump-shaped relation is seen from the influence of the degree of fiscal decentralization on economic growth. Fiscal decentralization analysis which is the ratio of regional original income and total regional expenditure, as well as using control variables consisting of government investment, and education which is implemented with reading and writing ability figures. The method used in this research is the econometrics approach. The model used in this study is the Fixed Effect Model with the Generalized Least Square method. The results of this study indicate that together the degree of decentralization, the degree of quadratic fiscal decentralization, government investment, the Gini ratio, the Gini squared ratio, and education significantly influence the regional economic growth in East Java Province. Partially the degree of decentralization, the degree of decentralized fiscal squared, government investment, the Gini ratio, the quadratic Gini ratio, and education also significantly affect economic growth, and show a hump-shape relationship, namely the degree of fiscal decentralization has a positive effect and quadratic fiscal decentralization hurts economic growth.

scholarly journals Fiscal Decentralization and Regional Economic Growth

2019 ◽  
Vol 8 (1) ◽  
pp. 108-119
Author(s):  
Hadi Sasana
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Fiscal Decentralization ◽  
Private Investment ◽  
Fixed Effect Model ◽  
Central Java ◽  
Effect Model ◽  
Independent Variable ◽  
The Subject ◽  
Positive Effect

Fiscal decentralization in Indonesia initiated in 2001 has proven to be effective and efficient; although, its implementation still need to be evaluated. The aim of the study was to analyze the implementation of fiscal decentralization on economic growth in Central Java. Tools multiple regression analysis using the method Fixed Effect Model (FEM).The period of the research was 9 years (2009-2017), and the subject of the was 35 districts/cities in Central Java Province. The dependent variable was economic growth, the independent variable was fiscal decentralization, and the control variables were investment and labor. The results showed that fiscal decentralization has a positive effect on economic growth in the district/city in Central Java. Other findings, private investment and the amount of labor encourage economic growth in Central Java. Based on findings, to reduce the fiscal gap, local governments should be able to increase their fiscal capacity through the development of commodity-based economic activity in their regions Keywords: Fiscal decentralization, Economic growth,  Investment, Labor

Determinants of Foreign Direct Investment in ASEAN

2008 ◽  
Vol 43 (3) ◽  
pp. 21-51 ◽  
Author(s):  
P.R. Bhatt
Keyword(s):  
National Income ◽  
Least Square Method ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Fixed Effect ◽  
Least Square ◽  
Negative Sign ◽  
Significant Variable ◽  
Fdi Inflows ◽  
Effect Model

The ASEAN region has become one of the most attractive investment locations in the developing world. It attracted FDI to the tune of US$19 billion in 2003. Among ASEAN countries, Singapore topped the list with US$11 billion FDI inflows followed by Malaysia (US$2.5 bn), Brunei (US$.0 bn), and Vietnam (USɁ5 bn) in 2003. An attempt has been made in this paper to understand the determinants of FDI in ASEAN. The empirical model is estimated for five countries of ASEAN and ASEAN region as a whole for the period 1976-2003. The estimation of the model shows that there is a positive influence of the size of the economy (GNI) on FDI inflows in the case of Indonesia and Singapore. The infrastructure is significant for Indonesia and Malaysia in attracting FDI. Exchange rate had influence on FDI for Malaysia. The openness of the economy was significant in attracting FDI for Indonesia. The model is estimated for panel data of ASEAN region by pooled least square method and fixed effect model. In the case of pooled least square method, gross national income (GNI) is very significant and having expected sign. This implies that market size attracted FDI in the ASEAN region. The depreciation of the currency attracted FDI inflows in ASEAN as indicated by the variable XR which is significant with negative sign. Infrastructure is another significant variable in this model. Openness variable is significant but negative sign. When the model was estimated by fixed effect model it is found that all variables are significant with expected sign except in the case of the variable openness.

scholarly journals Labor Absorption and Its Impact on Gross Regional Domestic Product

2013 ◽  
Vol 14 (2) ◽  
pp. 147
Author(s):  
Made Ika Prastyadewi ◽  
Agus Suman ◽  
Devanto Shasta Pratomo
Keyword(s):  
Fixed Effect Model ◽  
Simultaneous Equation ◽  
Equation Model ◽  
Least Square ◽  
Domestic Product ◽  
Simultaneous Equation Model ◽  
Agriculture Sector ◽  
Effect Model ◽  
Working Age ◽  
Positive Effect

The objective of this study is to examine the determinants of labor absorption in the trade, hotel and restaurant sector and its impact on Gross Regional Domestic Product/GRDP at Bali Province. This study is important due to the fact that the GRDP in this sector is the highest compared to other sector but the labor absorption is lower than the agriculture sector. This study used panel data comprising 9 regencies/cities at Bali Province in the period 2003-2009 including fixed effect model and simultaneous equation model of Two-Stage Least Square. The results showed that GRDP, working age population, and the minimum wage have positive effect on employment, while the educated unemployment has no significant effect on the employment in the trade, hotel and restaurant sector. In addition, increases in employment and workers productivity have positive and significant effects the GRDP in the trade, hotel and restaurant sector at Bali Province.

scholarly journals The Effect Of Fiscal Decentralization To Gross Domestic Regional Product Of District / City In South Sumatra Province

2017 ◽  
Vol 1 (2) ◽  
pp. 181
Author(s):  
Dessy Dian Syari ◽  
Syamsurijal Syamsurijal ◽  
Bernadette Robiani
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Direct Impact ◽  
Effect Model ◽  
District Economy ◽  
Fiscal Decentralisation ◽  
Regional Product

This study aims to examine the effect of fiscal decentralization on gross regional domestic product (GRDP) of districts in South Sumatera. The data used in this study are secondary data in the form of GRDP, district expenditure to provincial expenditure ratio, district revenue to district expenditure ratio and balancing fund to district revenue ratio in 15 districts/cities in South Sumatera for 11 years during the period of 2005-2015. Multiple regression analysis on fixed effect model is used in analyzing the data. The result shows that simultaneosly, fiscal decentralisation has significant effect on GRDP of districits/cities in South Sumatera. However, in partial test, the district expenditure to provincial expenditure ratio is positive and insignificant. This is related to the district expenditure allocation that has not any direct impact on the district economy thus, it has yet to give results that can support the economic growth.

scholarly journals ANALISIS PERKEMBANGAN SEKTOR KEUANGAN TERHADAP PERTUMBUHAN EKONOMI DI NEGARA ISLAM

2021 ◽  
Vol 17 (2) ◽  
pp. 27-37
Author(s):  
Izzun Khoirun Nissa
Keyword(s):  
Economic Growth ◽  
Interest Rates ◽  
Fixed Effect Model ◽  
Islamic Finance ◽  
Islamic Banks ◽  
Effect Model ◽  
Islamic Countries ◽  
Negative Effect ◽  
Conventional Banks ◽  
Positive Effect

This study analyzes the development of the financial sector on economic growth in Islamic countries in twelve Islamic countries for the period of 2011-2018. This study aims to determine the effect of the sector from conventional and sharia banking or the whole on economic growth in Islamic countries and from the Islamic finance sector to economic growth in Islamic countries. This study applied panel data to estimate empirically involving 12 Islamic countries during the 2011-2018 period. This study reveals that the fixed Effect model is the best model to explain the effect of the independent variables as a whole and specifically the Islamic finance sector on the dependent variable. Overall, the results of this study indicate that the variables of interest rates, total assets of conventional banks, financing and total assets of Islamic banks have no effect on economic growth. Meanwhile, the deposit variable has a negative effect and the number of Islamic banks has a positive effect on economic growth. Furthermore, the test for the Islamic finance sector on economic growth, the financing variable and the number of sharia offices have a significant positive effect on economic growth. For the variable total assets of Islamic banks has no effect on economic growth.

scholarly journals ANALYSIS OF FACTORS AFFECTING POVERTY IN NORTH SUMATERA PROVINCE (CASE STUDY IN 33 DISTRICT / CITY)

2019 ◽  
Vol 8 (2) ◽  
pp. 69
Author(s):  
Yudistira Avandi ◽  
Setyo Tri Wahyudi
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Least Square Method ◽  
Fixed Effect Model ◽  
Negative Influence ◽  
Positive Influence ◽  
Least Square ◽  
Coefficient Of Determination ◽  
Factors Affecting ◽  
Level Of Education

The equitable poverty reduction in North Sumatera became one of the unresolved issues until now. The decreasing of poverty percentage in the last five years in North Sumatera can not represent the level of public welfare. In fact , in 2013, there were 22 out of 33 districts in North Sumatera which have the poverty percentage more than ten percent and known as hardcore poverty. The highest poverty percentage was found in North Nias and Gunung Sitoli by 30.94 %, while the lowest was found in Deli Serdang by 4.71 %. This research stated the problem “How is the influence of the economic growth, level of education, and the minimum regional wages toward the level of poverty in North Sumatera Province? The objective is to analyze the influence of economic growth, the level of education and the minimum wages toward the poor population in North Sumatera Province. This research used 165 samples that spread in 33 districts in North Sumatera from 2009 until 2013 with panel data and using Fixed Effect Model Method.  The result of the Ordinary Least Square Method (LOS) through the multiple linear regretion estimated model showed that the economic growth and the minimum regional wages had negative influence, while the level of education had positive influence toward poverty in North Sumatera. The coefficient of determination (R2) is 0.948157 which means the variable of economic growth, minimum regional wages and level of education can define the poverty in North Sumatera by 94.82 %, and 5.18 % defined by other economic variables outside the model.

scholarly journals IMPACT OF INVESTMENT, LABOR, AND INFRASTRUCTURE ON JAVA ISLAND ECONOMIC GROWTH 2011-2017

2018 ◽  
Vol 1 (3) ◽  
pp. 230-241
Author(s):  
Maya Aprilia Sari
Keyword(s):  
Economic Growth ◽  
Local Governments ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Fixed Effect ◽  
Least Square ◽  
Clean Water ◽  
Domestic Investment ◽  
Central Java ◽  
Effect Model

The study aims to determine and analyze the effect of investment, labor, and infrastructure on economic growth in Java in 2011-2017. This research is a quantitative study using secondary data from six provinces in Java (DKI Jakarta, West Java, Central Java, Special Region of Yogyakarta, East Java and Banten) obtained from the Central Statistics Agency. Analysis of the data used in this study is panel regression of fixed effect model data using the General Least Square (GLS) method. The results showed that individually the domestic investment variable, labor, clean water infrastructure had a significant influence on economic growth while foreign investment had no significant effect on economic growth. Suggestions: 1) local governments are expected to increase the potential of each region to attract investors; 2) local governments are expected to create a conducive investment climate and facilitate investment licensing; 3) local governments are expected to increase the allocation of education funds and provide training in foreign languages ​​and skills to the workforce; 4) local governments should make better plans for the distribution of clean water and improve the efficiency of the use of clean water.© 2019, Universitas Negeri Semarang Penelitian bertujuan untuk mengetahui dan menganalisis pengaruh investasi,tenaga kerja, dan infrastruktur terhadap pertumbuhan ekonomi di Pulau Jawa tahun 2011-2017. Penelitian ini merupakan penelitian kuantitatif menggunakan data sekunder enam provinsi di Pulau Jawa (DKI Jakarta, Jawa Barat, Jawa Tengah, Daerah Istimewa Yogyakarta, Jawa Timur, dan Banten) yang diperoleh dari Badan Pusat Statistik.Analisis data yang digunakan pada penelitian ini adalah regresi data panel model fixed effect menggunakan metode General Least Square (GLS). Hasil penelitian menunjukkan bahwa secara individu variabel penanaman modal dalam negeri, tenaga kerja, infrastruktur air bersih memiliki pengaruh signifikanterhadap pertumbuhan ekonomi sedangkanpenanaman modal luar negeri tidak berpengaruh signifikan terhadap pertumbuhan ekonomi. Saran: 1) pemerintah daerah diharapkan meningkatkan potensi setiap daerah agar menarik para investor; 2) pemerintah daerah diharapkan menciptakan iklim investasi yang kondusif dan mempermudah perizinan investasi; 3) pemerintah daerah diharapkan meningkatkan alokasi dana pendidikan dan memberikan pelatihan bahasa asing dan ketrampilan kepada tenaga kerja; 4) pemerintah daerah hendaknya membuat perencanaan distribusi air bersih yang lebih baik lagi dan meningkatkan efisiensi penggunaan air bersih.

scholarly journals Pengaruh Desentralisasi Fiskal Terhadap Inflasi di Propinsi Nusa Tenggara Barat

2017 ◽  
Vol 2 (2) ◽  
pp. 53-61
Author(s):  
Rozzy Apprirachman ◽  
Didi Suwardi ◽  
Abdul Hadi Ilman
Keyword(s):  
Fiscal Decentralization ◽  
Revenue Sharing ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Significance Level ◽  
Fem Method ◽  
Effect Model ◽  
Negative Effect ◽  
Regional Product ◽  
Positive Effect

This research is designed to find  the  effect  of  fiscal  decentralization  on inflation in  West  Nusa Tenggara  (NTB) province during  the  period of  2010- 2014  for  ten  districts  in NTB  in  forms of  panel  data.. Fiscal Decentralization is proxied  from the  ratio  of  specific  allocation  fund  (DAK)  to the regional  expenditure  budget  (APBD),  ratio  of  general  allocation  fund   (DAU)  to APBD,  ratio  of   revenue  sharing  fund  (DBH)  to APBD  ,  and  regional retribution.  Meanwhile, inflation is  proxied by  the  Gross  Domestic  Regional  Product.  Tool’s analysis used in this research is multivariable linear regression by applying Fixed Effect Model (FEM) method.  The results show that the ratio of DAK to APBD has a significant negative effect on inflation in the region with 95 percent significance level.  If the DAK increased  one  unit   then the  inflation  will  be  reduced  by  0.1290144  unit.  Meanwhile, the ratio of DAU to APBD  has  positive  influence on  inflation  with  coefficient  value of  0.5825204. moreover, the ratio of  DBH to APBD has  positive  effect  on inflation  with the value of the coefficient is  0,4592334. On the other hand, the regional  retribution  has  negative  and  significant  influence  on inflation  with  coefficient  0.0003764.

scholarly journals The Effect Of Fiscal Decentralization To Gross Domestic Regional Product Of District / City In South Sumatra Province

2017 ◽  
Vol 1 (2) ◽  
pp. 181 ◽  
Author(s):  
Dessy Dian Syari ◽  
Syamsurijal Syamsurijal ◽  
Bernadette Robiani
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Direct Impact ◽  
Effect Model ◽  
District Economy ◽  
Fiscal Decentralisation ◽  
Regional Product

This study aims to examine the effect of fiscal decentralization on gross regional domestic product (GRDP) of districts in South Sumatera. The data used in this study are secondary data in the form of GRDP, district expenditure to provincial expenditure ratio, district revenue to district expenditure ratio and balancing fund to district revenue ratio in 15 districts/cities in South Sumatera for 11 years during the period of 2005-2015. Multiple regression analysis on fixed effect model is used in analyzing the data. The result shows that simultaneosly, fiscal decentralisation has significant effect on GRDP of districits/cities in South Sumatera. However, in partial test, the district expenditure to provincial expenditure ratio is positive and insignificant. This is related to the district expenditure allocation that has not any direct impact on the district economy thus, it has yet to give results that can support the economic growth.

scholarly journals The Influence of Local Revenue and Equalization Fund on Economic Growth in East Nusa Tenggara Province

2019 ◽  
Vol 17 (2) ◽  
pp. 125-134
Author(s):  
Safira Dini Aini ◽  
Endah Kurnia ◽  
Sunlip Wibisono
Keyword(s):  
Economic Growth ◽  
Central Government ◽  
Fiscal Decentralization ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Significant Positive Effect ◽  
Financial Independence ◽  
Local Revenue ◽  
The Government ◽  
Positive Effect

Fiscal decentralization is a policy made by the government to reduce fiscal dependence on the central government and create financial independence in the region. The independence of regional finance itself can be reflected through the high percentage of PAD revenue to total regional revenues. Where the existence of regional financial independence is expected to help implement regional development that can affect economic growth in the region. The purpose of this study was to determine the relationship of the level of regional financial independence to economic growth of districts/cities in East Nusa Tenggara Province in 2012-2017. The results of study uses secondary data analysis tools to approach the data panel Fixed Effect Model (FEM). The results of this study indicate that the local revenue had significant positive effect on economic growth, equalization funds had no significant positive effect on economic growth.

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