scholarly journals Sustainable Production Policy Impact on Palm Oil Firms’ Performance: Empirical Analysis from Indonesia

2020 ◽  
Vol 12 (20) ◽  
pp. 8750
Author(s):  
Noxolo Kunene ◽  
Yessica C.Y. Chung
Keyword(s):  
Palm Oil ◽  
Forest Degradation ◽  
Sustainable Production ◽  
Difference In Differences ◽  
Production Policy ◽  
Negative Effect ◽  
Oil Sector ◽  
The Government ◽  
Sustainability Standards ◽  
The Impact

Sustainable production is a key element of sustainable development. The concept was first introduced in the United Nations Rio Earth Summit in 1992 and has become an important item on the management of industries. In conjunction, the government of Indonesia introduced the Indonesian Sustainable Palm Oil (ISPO) policy in 2011 to adhere to international sustainability standards of Sustainable Palm Oil and of reducing emissions from deforestation and forest degradation (REDD+). This study investigates the impact of ISPO policy on palm oil firms’ performance. Using a sample of 409 palm oil firms of the Indonesian palm oil sector for the years 2010 and 2015, we employed a regression discontinuity (RD) with a difference-in-differences approach to explore the effect of the policy on firms’ performance. The RD results show that the introduction of the policy significantly reduced large firms’ profit by IDR 75m (equivalent to USD 5250); the negative effect of the policy increased with firm size. Furthermore, there was a significant reduction in performance for firms that promptly purchased land before the policy’s ban on land expansion. These findings suggest that a punitive sustainable production policy does not sustain the palm oil sector. Nevertheless, large companies that complied with international sustainability measures ahead of the introduction of the domestic policy benefited.

scholarly journals Automatic Promotion and Student Dropout: Evidence from Uganda, Using Propensity Score in Difference in Differences Model

2018 ◽  
Vol 7 (2) ◽  
pp. 191 ◽  
Author(s):  
Jeje Moses Okurut
Keyword(s):  
Propensity Score ◽  
Dropping Out ◽  
Probit Regression ◽  
Difference In Differences ◽  
Student Dropout ◽  
Analysis Technique ◽  
Analysis Strategy ◽  
Negative Effect ◽  
And Control ◽  
The Impact

The impact of automatic promotion practice on students dropping out of Uganda’s primary education was assessed using propensity score in difference in differences analysis technique. The analysis strategy was instrumental in addressing the selection bias problem, as well as biases arising from common trends over time, and permanent latent differences between the treated and control groups. Probit regression results indicate a negative effect on the probability of students dropping out, but only at P3. There seems to be no policy effect at P6. Decomposing the effect incidence along school location shows the policy as having had an effect only on P3 students studying in urban schools; otherwise, there is no effect among students at P3 rural, P6 rural or P6 Urban. In terms of the gender component, automatic promotion appears to have had an effect on P3 male and female students and no effect on either sex at P6.

scholarly journals Human Rights Anchored in Business: Practice and Challenges in the Palm Oil Sector in Malaysia

2019 ◽  
Vol 20 (1) ◽  
pp. 1-20
Author(s):  
Andika AB. Wahab
Keyword(s):  
Human Rights ◽  
Corporate Culture ◽  
Palm Oil ◽  
Business Practice ◽  
Oil Companies ◽  
Business And Human Rights ◽  
Oil Sector ◽  
Sustainability Standards ◽  
Direct Market ◽  
Market Pressure

The United Nations Guiding Principles on Business and Human Rights aims to address gaps in human rights governance by setting a standard and corporate culture of respecting human rights. In Malaysia, despite growing requirements for sustainable production, the palm oil sector has been implicated in various corporate human rights violations. This article discusses how do three public listed companies in the palm oil sector in Malaysia perform their obligation to respect human rights? This article argues that while large palm oil companies have shown modest progress in realizing their human rights obligation – the lack of regulatory framework, resources, direct market pressure and membership to sustainability standards continue to serve as critical challenges in compensating the gaps in human rights governance.

scholarly journals IMPACT OF FOREIGN DIRECT INVESTMENT ON EXPORT SECTOR IN NIGERIA (1981-2018)

2020 ◽  
pp. 19-24
Author(s):  
Edeh, Chukwudi Emmanuel ◽  
Obi, Cyril Ogugua ◽  
Mbaeri, Clara Ndidiamaka ◽  
Ebite Ogochukwu Njideka
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Time Series Data ◽  
Linear Equations ◽  
Series Data ◽  
Cent Increase ◽  
Oil Export ◽  
Oil Sector ◽  
The Government ◽  
The Impact

The objective of the study is to examine the impact of FDI on exports in Nigeria for the period 1981-2018. Specifically, two linear equations were formulated to trace the impact of FDI on oil sector and non-oil sector. The explanatory variables in the study were exchange rate, GDP, degree of openness, FDI, and inflation. The ADF technique was used to test for the stationarity of the time series data. The results of the Error Correction models reveal that there is a positive and significant (P(FDI) = 0.000) relationship between FDI and oil export in Nigeria. One per cent increase in FDI leads to 0.47 per cent increase in oil export over the period under study. There is a positive and significant (P(FDI) = 0.005) relationship between FDI and non-oil export in Nigeria. One per cent increase in FDI leads to 0.31 per cent increase in non-oil export over the period under study. The impact of FDI on the oil export is higher than the non-oil sector by 0.16 per cent. The study recommends for more aggressive policies to attract FDI in the oil sector to be pursued by the government. Obstacles to doing business in Nigeria should be removed. KEYWORDS: Foreign direct investment, oil export, non-oil export

scholarly journals Cotton Imports and GDP of Indonesia- Cointegration Analysis

2021 ◽  
pp. 149-154
Author(s):  
P. Soumya ◽  
R. A. Yeledhalli
Keyword(s):  
High Speed ◽  
Cointegration Analysis ◽  
Causality Analysis ◽  
The Real ◽  
Real Gdp ◽  
Use Of Technology ◽  
Long Run ◽  
Negative Effect ◽  
The Government ◽  
The Impact

The study examines the impact of cotton imports on the real GDP (Gross Domestic Product) of Indonesia for a period from 1992 to 2018 using ARDL approach and Granger causality analysis. Results of the study indicated that cotton imports have negative effect on economic growth. For every 1% increase in cotton imports the real GDP decreased by 0.107% in the long run. Any disequilibrium in the model is adjusted with a high speed of adjustment of 107.7% in less than a year. Shocks and the trend are adjusted in less than one year. There is no causality between imports of cotton and the real GDP. The study suggested effort should be taken by the government to increase yield of cotton by the use of technology and also a need to initiate farmers to take up cotton farming. 

scholarly journals Domestic Debt and Economic Growth in Tanzania

2018 ◽  
Vol 1 (1) ◽  
pp. p207
Author(s):  
Josephat Lotto ◽  
Catherine T. Mmari
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Gdp Growth ◽  
Gdp Growth Rate ◽  
Domestic Debt ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

The main objective of this paper was to examine the impact of domestic debt on economic growth in Tanzania for the period 1990 to 2015 using Ordinary Least Square (OLS) regression method to estimate the effects. The study finds that there is an inverse but insignificant relationship between domestic debt and the economic growth of Tanzania as measured by GDP annual growth. The inverse relationship between domestic debt and GDP may be caused by different factors such as; increased trend in domestic borrowing, government lenders’ profile dominated by commercial banks and non-bank financial institutions which promotes the “crowding out” effect; the nature of the instruments used by the government ; the improper use of the domestic borrowed funds which may include funding budgetary deficits, paying up principal and matured obligations on debt, developing financial markets as well as fund other government operations. Other control variables relate with the GDP as predicted. For example, Inflation (INF) has a negative effect on the GDP growth rate, but the relationship is not statistically significant, while gross capital formation (GCF) has a positive statistically significant effect on GDP growth rate. Furthermore, foreign direct investment (FDI) showed a positive effect on the GDP growth rate and export (X) has a positive effect on GDP growth rate, and the relationship is statistically significant explaining that if a country applied an export-led growth economic strategy it enjoys the gains of participating in the world market. This means that an increase in export stimulates demand for goods which leads to increase in output, and as a country’s output increases, the economic performance also takes a similar trend. Finally, government expenditure (GE) had a negative effect on the GDP growth rate which may be explained by the increased government expenditures which are funded by either tax or borrowing. Therefore, what is required for countries like Tanzania is to have better debt management strategies as well as prudential financial management while maintaining to remain within the internationally acceptable debt level of 45% of GDP and maintain a GDP growth rate of not less than 5%. It is important for the country to realize from where to borrow from, the tenure, the risks involved and limitations to borrowing and thus set the right balance of combination of both kinds of debt. Another requirement is to properly utilize the borrowed funds. The central government’s objective should be to use the funds in more development-oriented projects that bring positive returns to the economic development.  The government should not only create a right environment and policies for investment to attract investment from domestic and foreign sources but also be cautious about the kind of investments that the foreign investors make.

scholarly journals The costs of resource-led development. An analysis of the economic impact of the oil extraction boom in Colombia

2016 ◽  
pp. 79-94
Author(s):  
Paulina Kupisz
Keyword(s):  
Economic Performance ◽  
Oil Extraction ◽  
Economic Effects ◽  
Negative Consequences ◽  
Oil Boom ◽  
New Challenges ◽  
Oil Sector ◽  
The Government ◽  
Rich Countries ◽  
The Impact

Oil-rich countries often face negative consequences of natural resources-led development on their overall economic performance. One of the reasons is that a country’s rising extraction rates frequently lead to various changes in its public policy and revenue management. Colombia has spectacularly increased its oil production by almost 500,000 barrels per day (bpd) in ten years, which was the effect principally of the implementation of strongly market-oriented petroleum policies in 2003. It is now the fourth largest crude producer in Latin America, registering nearly ten times more export sales than at the end of the 20th century. The economic effects of the oil-boom are already visible, which has created many new challenges the government must face in order to ensure sustainable development in the country, and to be able to mitigate the impact of the recently dropping world oil prices. The purpose of the article is to present the latest findings on the impact of the oil sector development on the Colombian economy in the 21st century, focusing especially on the current situation.

scholarly journals PENGARUH PENGELUARAN PEMERINTAH TERHADAP PERTUMBUHAN EKONOMI DI PROVINSI BENGKULU

2015 ◽  
Vol 3 (2) ◽  
Author(s):  
Merri Anitasari ◽  
Ahmad Soleh
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Secondary Data ◽  
Positive Outcome ◽  
Significant Positive Effect ◽  
Regional Autonomy ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
Positive Effect

Merri Anitasari, Ahmad Soleh; Pengaruh Pengeluaran Pemerintah Terhadap Pertumbuhan Ekonomi Di Provinsi Bengkulu. Tujuan dari penelitian ini adalah untuk menganalisis pengaruh dari pengeluaran pemerintah terhadap pertumbuhan ekonomi di provinsi Bengkulu dengan menggunakan data sekunder periode pengamatan tahun 2001-2012 yang diperoleh dari Badan Pusat Statistik. Hasil analisis dengan menggunakan SPSS 16 menunjukkan bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di provinsi Bengkulu. Jika pemerintah menaikkan pengeluaran pemerintah sebesar 1 miliar rupiah, maka akan dapat meningkatkan pertumbuhan ekonomi sebesar 1,17 % per tahun. Sedangkan pengaruh pengeluaran pemerintah terhadap pertumbuhan ekonomi di daerah kabupaten/kota menunjukkan bahwa dari jumlah 10 kabupaten/kota di Provinsi Bengkulu, kabupaten Rejang Lebong dan kota Bengkulu yang memiliki hasil bahwa pengeluaran pemerintah berpengaruh positif dan signifikan terhadap pertumbuhan ekonomi di daerahnya. Kabupaten Bengkulu Utara memiliki pengaruh yang negatif sedangkan 7 kabupaten lainnya memiliki hasil yang positif namun tidak signifikan. Sebagian besar kabupaten di Provinsi Bengkulu dikategorikan sebagai daerah yang baru membangun yang merupakan hasil pemekaran pasca pemberlakuan otonomi daerah. Sehingga dalam jangka pendek pengeluaran pemerintah dianggap belum mampu menstimulus kegiatan sektor-sektor perekonomian serta memacu pertumbuhan ekonomi di daerah tersebut.Merri Anitasari, Ahmad Soleh; Impact of Government Spending on Economic Growth In Bengkulu Province. The purpose of this study was to analyze the impact of government spending on economic growth in the province of Bengkulu using secondary data observation period 2001 - 2012 year were obtained from the Central Bureau of Statistics. Results of analysis using SPSS 16 shows that government spending and significant positive effect on economic growth in the province ofBengkulu. If the government raised government spending by 1 billion dollars, it will be able to boost economic growth by 1.17% per year. While the effect of government spending on economic growth in the district/city showed that of a total of 10 districts cities in Bengkulu province, Rejang Lebong district and Bengkulu City which has the result that government spending and significant positive effect on economic growth in the region. North Bengkulu has a negative effect, while seven other districts have a positive outcome, but not significantly. Most districts in the province of Bengkulu categorized as new building is the result of the division after the implementation of regional autonomy. So in the short-term government spending is considered not able to stimulate activity sectors of the economy and spur economic growth in the area.Key Word: Government Spending, Economic Growth, Bengkulu Province

scholarly journals Tax Reform: Is it Welfare-Enhancing or Welfare-Reducing?

2021 ◽  
Vol 21 (3) ◽  
pp. 1101-1112
Author(s):  
Roshaiza Taha ◽  
Norsiah Ahmad ◽  
Wan Anisah Endut ◽  
Saeed Rabea Ali Baatwah
Keyword(s):  
Tax Reform ◽  
Consumer Welfare ◽  
Price Effect ◽  
Policy Changes ◽  
The Public ◽  
Goods And Services ◽  
Negative Effect ◽  
The Government ◽  
The Impact ◽  
Shed Light

The ongoing tax reform in Malaysia has triggered our motivation to understand the effect of such reform on the public since the government has continuously emphasised that the changes would not burden the consumer. Whether this is a myth or reality is deemed interesting to ponder upon. Thus, this study aims to provide evidence concerning Malaysian tax reform on consumer welfare by looking at the price effect, consumer burden, and inflation. Price observations of the pre-, during and post-reformation period were conducted to provide meaningful evidence. Interestingly, the outcome of the observation rules out the public accusation that the tax reform would boost the price of goods and services and further result in a welfarereducing event. Also, a review of the recent statistics on poverty incidence does not show a negative effect of tax policy changes on society’s welfare. It is hoped that the discussion provided in this paper will shed light on the impact of tax reformation in Malaysia, albeit a further thorough examination might be required. 

Oil prices will increase Ecuador's fiscal pressures

2015 ◽  
Keyword(s):  
Monetary Policy ◽  
Budget Deficit ◽  
Oil Prices ◽  
Content Type ◽  
Full Control ◽  
Public Resources ◽  
Oil Sector ◽  
The Government ◽  
The Impact ◽  
Impact Of Falling

Significance The collapse of world oil prices has brought fiscal policy sharply into focus in Ecuador. At a time when the budget deficit is widening and the opposition is strengthening, the government faces the prospect of receiving significantly less income from the oil sector than anticipated. The fallout from the plunge of oil prices coincides with the beginning of the constitutional debate that could allow the re-election of President Rafael Correa in 2017. Impacts The government will intensify efforts to raise oil output in a bid to ease the impact of falling oil prices. Conflicts between central and local government will probably increase as public resources become scarcer. If oil prices remain low, the appeal of exiting dollarisation and establishing full control over monetary policy will rise.

Study shows organizational learning has a significant effect on both job satisfaction and organizational commitment at Indonesian palm oil company

2020 ◽  
Vol 28 (5) ◽  
pp. 33-34
Keyword(s):  
Job Satisfaction ◽  
Organizational Commitment ◽  
Organizational Learning ◽  
Palm Oil ◽  
Employee Performance ◽  
Positive Influence ◽  
Class Iii ◽  
Content Type ◽  
Oil Sector ◽  
The Government

Purpose The author was motivated to focus on the palm oil sector because it is essential to the Indonesian economy. He wanted to discover how to improve performance Design/methodology/approach The author focused on employees of class III-IV who have the authority to manage the natural and HR resources of PTPM XII. He formulated five hypotheses to test on 130 class III to IV employees. His first three hypotheses tested the effect of organizational learning on job satisfaction, organizational commitment and employee’s performance. His fourth and fifth hypotheses tested the effects of job satisfaction and organizational commitment on employees’ performance. Findings Results revealed how organizational learning has a significant effect on both job satisfaction and organizational commitment at the large state-owned palm oil (CPO) producer. The study also indicated that organizational learning has no effect on employee performance. However, the data also revealed that job satisfaction and organizational commitment have a positive influence on employee performance. Originality/value Indonesia is the biggest palm oil producer in the world and the Government wants to improve the state sector’s performance.

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