Analysis of the Causal Relationship between Regional Housing Investment and Regional Economic Growth Using Panel VAR Model

This study aims to analyse the dynamic between credit to micro, small, and medium enterprises (MSMEs), private credit, and regional economic growth in Indonesia. A panel vector autoregression model is employed to understand the dynamic in the model. Unlike previous cross-country studies, this paper is using provincial panel data. The relationship between variables in the model are connected under the same regulation, monetary authority, and fiscal institution. Thus, there will be no effects that appear from the differences of institutions. The results suggest that the interaction between credit to MSMEs and private credit is bi-directional. Also, credit to MSMEs and private credit does affect regional economic growth. However, the result does not provide strong evidence for causality from regional economic growth to credit for MSMEs or private credit. Penelitian ini bertujuan untuk menganalisis hubungan dinamis antara kredit kepada UMKM, kredit kepada sektor privat, dan pertumbuhan ekonomi regional di Indonesia. Untuk memahami hubungan ketiga variable tersebut, penelitian ini menggunakan panel vector autoregression (Panel VAR). Penelitian ini berbeda dengan penelitian antar negara yang telah ada sebelumnya karena penelitian ini menggunakan data pada level provinsi. Data pada level provinsi memiliki keunggulan karena berada pada sistem regulasi perbankan dan regulasi fiskal yang sama sehingga tidak terdapat efek dari adanya perbedaan institusional. Dari penelitian ini diketahui bahwa interaksi antara kredit kepada UMKM dan kredit kepada sektor privat adalah dua arah. Kredit kepada UMKM dan kredit kepada sektor privat mempengaruhi pertumbuhan ekonomi regional, namun tidak terdapat bukti kuat yang menjelaskan hubungan sebaliknya.

Download Full-text

CO2 Emissions, Energy Consumption and Regional Economic Growth: Base on Panel VAR

International Journal of Digital Content Technology and its Applications ◽

10.4156/jdcta.vol6.issue19.49 ◽

2012 ◽

Vol 6 (19) ◽

pp. 401-409

Author(s):

Jie TANG ◽

Ling WANG ◽

Lili ZHANG ◽

Zhongying QI

Keyword(s):

Economic Growth ◽

Energy Consumption ◽

Co2 Emissions ◽

Regional Economic Growth ◽

Panel Var ◽

Regional Economic

Download Full-text

Moderating Influence That Islamic Law Intensity Of Causal Relationship Between Regional Economic Growth And Determinant: Study Empiricalon District / City In The Province Nanggroe Aceh Darussalam (Nad)

International Journal of Science, Technology & Management ◽

10.46729/ijstm.v2i6.410 ◽

2021 ◽

Vol 2 (6) ◽

pp. 2290-2296

Author(s):

Safriadi M Yunus AKS ◽

Dharma Tintri Ediraras ◽

Toto Sugiharto

Keyword(s):

Economic Growth ◽

Regional Development ◽

Causal Relationship ◽

Significant Role ◽

Islamic Law ◽

Regional Economic Growth ◽

Regional Economic ◽

Technology Investment ◽

Development Expenditure ◽

The Government

Policy of the Government of the Republic of Indonesia to grant special autonomy to the Provincial Government of Nangroe Aceh Darussalam (NAD) through the concept of asymmetric decentralization accompanied by the issuance of a law on the implementation of Islamic Sharia in a kaffah manner, opening opportunities for the government and the people of NAD Province to increase the pace of development economy based on faith and piety to Allah SWT. How the impact of the implementation of these policies on regional economic growth in the Province of NAD has not been widely studied. The purpose of this dissertation is to analyze the causal relationship between regional economic growth and its determinants and to analyze the moderating role of the intensity of the application of Islamic law on the causal relationship. The target population is districts/cities in NAD Province and the sample consists of 23 units of analysis (5 cities and 18 districts). Secondary data on a ratio scale to measure research variables, namely HDI, technology investment, population, regional development expenditure, intensity of the application of Islamic Sharia, and regional economic growth for the 2010 - 2019 period, sourced from the Central Statistics Agency and the Regional Office of the Ministry of Religion of NAD Province. The data analysis technique used descriptive statistics and panel data regression analysis to test 10 research hypotheses. The results show that simultaneously capital, HDI, technology investment, population, and regional development expenditures have a very large influence on regional economic growth in NAD Province. Partially, capital, technology investment, population, and regional development expenditure are the determinants of regional economic growth in NAD Province. The four determinant variables have an effect on increasing regional economic growth. Regencies/cities that have large capital, moderate and innovative technology investment accompanied by a high population, and are supported by adequate regional development expenditures, have an impact on high economic growth in NAD Province. The intensity of the application of Islamic law moderates the causal relationship between capital, technology investment and population on regional economic growth, while the intensity of the application of Islamic law has not shown a significant role in moderating the causal relationship between the human development index and regional development expenditures on regional economic growth. This indicates that the intensity of the application of Islamic Sharia in the province of Aceh has given a significant role to all sectors in increasing regional economic growth. further research is suggested to use Economic Well Being Theory and include fiscal and regional retribution variables, education and ICT readiness index and electronic-based service system index.

Download Full-text