scholarly journals Analisis Faktor-faktor yang Mempengaruhi Pertumbuhan Ekonomi, Konsumsi dan Tabungan di Sumatera Barat

2016 ◽  
Vol 1 (01) ◽  
pp. 22-33
Author(s):  
Efrida Ningsih
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Interest Rate ◽  
Model Equation ◽  
Positive Impact ◽  
Government Expenditure ◽  
Two Stage ◽  
Negative Effect

This article focused on analyze (1) Effect of consumption, investmen, government expenditure and the nett export to the economic growth in West Sumatera. (2) The influence of disposible income,  before consumtption period and the saving on the consumption in west Sumatera (3).Effect  of  disposible income, interest rate and consumption  to the saving in West Sumatera. Data used time series of (I year kuartal 20001 – IV year kuartal 2010). This article use analyzer model equation of simultaneous with method of Two Stage Least Squared (TSLS). The result of research concludes that (1) the consumption  have a significant and positive impact on the economic growth, investment have significant and positive impact on the economic growth, government expenditure have significantly and positive on the economic growth and nett export have a significant and positive impact on the economic growth in West Sumatera. If the economic growth increases, the consumption will also increase. (2) disposible income, economic growth and before consumtption period significantly influence the consumption in West Sumatera. While the saving is significant and negative effect on consumption in West Sumatera. (3) disposible income and  consumption significantly influence the saving in West Sumatera. While the interset rate is not significant effect on saving  in West Sumatera.

scholarly journals Analisis Faktor-faktor yang Mempengaruhi Kurs dan Jumlah Uang Beredar di Indonesia

2016 ◽  
Vol 1 (01) ◽  
pp. 1-11
Author(s):  
Adek Laksmi Oktavia
Keyword(s):  
Time Series ◽  
Exchange Rate ◽  
Interest Rate ◽  
Interest Rates ◽  
Money Supply ◽  
Trade Balance ◽  
Model Equation ◽  
Positive Impact ◽  
Negative Effect ◽  
The Exchange Rate

This article focused on analyze (1) Effect of the money supply, income, domestic interest rates, inflation and the trade balance to the exchange rate in Indonesia. (2) The influence of domestic interest rates, output and the exchange rate on the money supply in Indonesia. Data used time series of (I year quartal 2000 – IV year quartal 2010). This article use analyzer model equation of simultaneous with method of Two Stage Least Squared (TSLS). The result of research concludes that (1) the money supply have a significant and positive impact on the exchange rate, incomes have significant and positive impact on the exchange rate, domestic interest rates significantly and negatively on the exchange rate and inflation have a significant and positive impact on the exchange rate. While the trade balance is not significant and negative effect on the exchange rate in Indonesia. If the money supply increases, the exchange rate will also increase or depreciate. If income increases, the exchange rate will depreciate. If the domestic interest rate increases, the exchange rate will appreciate. If inflation increases, the exchange rate will also depreciate. (2) domestic interest rates, output, and the exchange rate significantly influence the money supply in Indonesia.

scholarly journals Analisis Faktor-Faktor yang Mempengaruhi PMDN di Jawa Tengah

2018 ◽  
Vol 6 (2) ◽  
pp. 165-169
Author(s):  
Ferdila Dedy Utomo
Keyword(s):  
Time Series ◽  
Interest Rate ◽  
Government Expenditure ◽  
Least Square ◽  
Test Statistics ◽  
Domestic Investment ◽  
Ordinary Least Square ◽  
Central Java ◽  
Negative Effect ◽  
Secondary Time

Penelitian ini bertujuan untuk : menganalisis pengaruh suku bunga kredit, pengeluaran pemerintah dan tenaga kerja terhadap Penanaman Modal Dalam Negeri (PMDN) di Jawa Tengah. Jenis penelitian ini adalah kuantitatif, data yang digunakan dalam penelitian ini adalah data sekunder runtut waktu (time series) dengan periode 28 tahun dimulai pada tahun 1988 sampai tahun 2015. Metode analisis yang digunakan adalah Ordinary Least Square (OLS). Pengujian menggunakan uji t-statistik dan uji F-statistik. Hasil penelitian ini menunjukkan bahwa variabel pengeluaran pemerintah berpengaruh negatif dan tidak signifikan terhadap PMDN. Variabel tenaga kerja berpengaruh positif dan signifikan terhadap PMDN. Sedangkan variabel suku bunga kredit berpengaruh negatif tetapi tidak signifikan terhadap PMDN. The objectives of this research are to analyze the effect of lending interest rate, government expenditure and labor on domestic investments in Central Java. This research is a quantitative study in which the data used as the reference is secondary time series based data with a period of 28 years from the beginning in 1988 until 2015. The analytical method applied is Ordinary Least Square (OLS) while the statistical assessment was using t-test and F-test statistics. Based on the results of data analysis, it is showed that the variable government expenditure has a negative and not significant effect on domestic investment. The variable labor growth has a positive and significant effect on domestic investment. The variable lending interest rate has negative effect but not significant on domestic investment.

How Does Public Debt Affect the Indian Macroeconomy? A Structural VAR Approach

2020 ◽  
Vol 14 (3) ◽  
pp. 253-284
Author(s):  
Ranjan Kumar Mohanty ◽  
Sidheswar Panda
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Public Debt ◽  
Positive Impact ◽  
Decomposition Analysis ◽  
Structural Var ◽  
Adverse Impact ◽  
Mixed Effect ◽  
Domestic Debt ◽  
The Impact

The study investigates the macroeconomic effects of public debt in India during 1980–2017 using a structural vector autoregression framework. The objective is to examine the impact of public debt on the interest rate, investment, inflation and economic growth in India. The results of the impulse response functions show that public debt has an adverse impact on economic growth but a positive impact on the long-term interest rate in the short run and a mixed effect (both negative and positive) on investment and inflation. We also find that domestic debt has a more adverse impact on the economy than external debt. The estimated variance decomposition analysis finds that much of the variation in selected macro variables are explained by public debt and growth in India. This study suggests that public debt especially domestic debt should be controlled and channelled productively to have a favourable impact on the economy. JEL Classification: H63, O40, C40

Interest rate liberalization and economic growth nexus: does corruption matter?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Abdulhadi Aliyara Haruna ◽  
Abu Sufian Abu Bakar
Keyword(s):  
Economic Growth ◽  
Interest Rate ◽  
Positive Impact ◽  
Reform Process ◽  
Negative Effects ◽  
African Countries ◽  
Cross Sectional ◽  
Content Type ◽  
Interest Rate Liberalization ◽  
The Impact

Purpose This paper aims to examine the impact of interest rate liberalization on economic growth and the relevance of corruption in the five selected sub-Saharan African countries. Design/methodology/approach The study used the modified version of Driscoll and Kraay’s model by Hoechle, which solved the effects of cross-sectional dependence and heteroscedasticity. Findings The findings reveal a positive impact of the index on economic growth, and it was found that foreign direct investment (FDI) and credit to private sector by banks (CPSB) all stimulate economic growth. The interaction terms of corruption with FDI and CPSB indicate negative effects that show how corruption erodes the benefits of liberalization. Finally, the paper recommends the pursuit of appropriate policies with the sole aim of eradicating corruption and providing a conducive environment for business. Originality/value The paper developed a composite domestic financial liberalization index to capture the timing and essential dimensions of the reform process. The study investigates the effect of interest rate liberalization on economic growth and the relevance of corruption. Most of the recent and past studies only examined the impact of interest rate reforms on growth without investigating the relevance of corruption.

The effectiveness of government expenditure on economic growth in Botswana

2019 ◽  
Vol 10 (3) ◽  
pp. 368-384 ◽  
Author(s):  
Kafayat Amusa ◽  
Mutiu Abimbola Oyinlola
Keyword(s):  
Economic Growth ◽  
Government Spending ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Public Spending ◽  
Empirical Literature ◽  
Content Type ◽  
Long Run ◽  
Short Run

Purpose The purpose of this paper is to examine the relationship between government expenditure and economic growth in Botswana over the period 1985‒2016. The study employed the auto-regressive distributed lag (ARDL) bounds testing approach in investigating the nexus. The study makes the argument that the effectiveness of public spending should be assessed not only against the amount of the expenditure but also by the type of the expenditure. The empirical findings showed that aggregate expenditure has a negative short-run and positive long-run effect on economic growth. When expenditure is disaggregated, both forms of expenditures have a positive short-run effect on economic growth, whereas only a long-run positive impact of recurrent expenditure is observed. The study suggests the need to prioritize scarce resources in productive recurrent and development spending that enables increased productivity. Design/methodology/approach This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis is carried out on both an aggregate and disaggregated level. Government spending is divided into recurrent and development expenditures. Findings This study examined the effectiveness of government spending in Botswana, within an ARDL framework from 1985 to 2016. To achieve this, the analysis hinged on both the aggregate and disaggregated levels. The results of the aggregate analysis suggest that total public expenditure has a negative impact on economic growth in the short run; however, its impact becomes positive over the long run. On disaggregating government spending, the results show that both recurrent and development expenditures have a significant positive short-run impact on growth; however, in the long run, the significant positive impact is only observed for recurrent expenditure. Practical implications The results provide evidence of the diverse effects of government expenditure in the country. In the period under investigation, 73 percent of total government expenditure in Botswana was recurrent in nature, whereas 23 percent was related to development. From the results, it can be observed that although the recurrent expenditure has contributed to increased growth and must be encouraged, it is also pertinent for the Botswana Government to endeavor to place more emphasis on productive development expenditure in order to enhance short- and long-term growth. Further, there is a need to strengthen the growth-enhancing structures and to prioritize the scarce economic resources toward productive spending and ensuring continued proper governance over such expenditures. Originality/value The study provides empirical evidence on the effectiveness of government spending in a small open, resource-reliant middle-income SSA economy and argues that the effectiveness of public spending must be assessed not only against the amount of the expenditure but also on the type or composition of the expenditure. The study contributes to the scant empirical literature on Botswana by employing the ARDL approach to cointegration technique in estimating the long- and short-run impact of government expenditure on economic growth between 1985 and 2016.

scholarly journals Remittances Impact on Economic Growth, Domestic Savings and Domestic Capital at the Presence of ODA and FDI in Selected MENA Countries

2016 ◽  
Vol 3 (2) ◽  
pp. 26 ◽  
Author(s):  
Mahmoud Mohammed Sabra
Keyword(s):  
Economic Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Host Countries ◽  
Mena Countries ◽  
Domestic Capital ◽  
Domestic Savings ◽  
Seeking Behavior ◽  
The Impact

<p>This article investigates the impact of remittances on economic growth, investment and domestic savings in selected MENA labor exporting countries. The estimations have been done in the presence of other international capital inflow, which are foreign aid and foreign direct investment. A multiple equations model estimated simultaneously using different techniques. We found a positive impact of remittances on both growth and investment, meanwhile a negative impact on domestic savings. Aid impacts negatively on both growth and savings where it finance consumption instead of investment and enhance rent seeking behavior. Government expenditure and FDI are important source of growth. We recommended that policies for encouraging final use of productive investment of remittances. In addition, enhancing more project of migrant in home country that may facilitate their trade with host countries. Finally, more efficient allocation of aid is requires, and attracting more FDI.</p>

Macroeconomic Variables and Retained Earnings of Quoted Manufacturing Firms in Nigeria: A Time Variant Study

2018 ◽  
Vol 3 (1) ◽  
pp. 33-47
Author(s):  
Ngozi G. Iheduru ◽  
Charles U. Okoro
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Inflation Rate ◽  
Positive Impact ◽  
Retention Rate ◽  
Manufacturing Firms ◽  
Oil Price ◽  
Negative Effect ◽  
Retained Earnings

This study examined external factors that determine retained earnings of quoted manufacturing firms in Nigeria. Annual time series data were sourced from Central Bank of Nigerian Statistical Bulletin, and Annual Reports of the selected manufacturing firms, the study modeled retained earnings the function of money supply, exchange rate, oil price, inflation rate and interest rate. The ordinary Least Square method was employed with multiple regression model based on Statistical Package for Social Sciences version (22.0). The Durbin-Watson statistics show the presence of multiple serial autocorrelation.The result shows collinearity that corresponds with the Eigen value condition index and variance constants are less than the required number, while the variance inflation factors indicate the absence of auto-correlation.It was found that Oil price have positive impact on retention rate of the selected manufacturing firms while exchange rate and interest rate have negative impact on the dependent variable. It was also found that   money supply have negative effect on dividend payout rate while inflation rate have positive impact on retention rate. From the findings we conclude that oil price, interest rate, exchange rate and money supply have no significant relationship with dividend policy while inflation rate have significant relationship with dividend policy of the selected quoted manufacturing firms. We recommend the need for the manufacturing firms to formulate policies that leverage the negative effect of macroeconomic variables on retained earnings of the manufacturing firms and interest rate should properly be defined in the Nigerian financial market that is either full deregulated or regulated to determine the market rate of return, investment and the profitability of manufacturing firms. The operational efficiency of Nigerian capital market and the financial environment should be deepened, existing laws that does not encourage profitable investment should be changed and new laws enacted to enhance investment that will affect the profitability of manufacturing firms positively.

scholarly journals DAMPAK TINGKAT SUKU BUNGA KREDIT, INFLASI DAN PERTUMBUHAN EKONOMI TERHADAP JUMLAH KREDIT BANK UMUM SWASTA NASIONAL YANG DISALURKAN DI INDONESIA

2019 ◽  
Vol 2 (1) ◽  
pp. 33-44
Author(s):  
Muhammad Rizki Saputra ◽  
Ryan Juminta Anward ◽  
Rizali Rizali
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Interest Rate ◽  
Unit Root ◽  
Unit Root Test ◽  
Statistical Test ◽  
Economic Variable ◽  
Quarterly Data ◽  
Private Banks ◽  
Econometric Technique

The objective of this research is to (1) analyse the influence of loan interest rate, inflation and economic growth to loans disbursed by national private banks in Indonesia. This research uses quarterly data for ten years from 2007 to 2016. The methodology used in this research is time series econometric technique which is the unit root test, statistical test and classical assumption test. The result of this research shows that loan interest rate and inflation variable have a negative correlation and statistically is not significant to loans that disbursed by national private banks in Indonesia. While Indonesian economic growth and global economic variable have a positive correlation and statistically is significant to loans that disbursed by national private banks in Indonesia.

scholarly journals The Determinants of Inclusive Economic Growth in Yogyakarta

2020 ◽  
Vol 16 (2) ◽  
pp. 200-210
Author(s):  
Ibnu Hidayat ◽  
Sri Mulatsih ◽  
Wiwiek Rindayati
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Positive Impact ◽  
Average Length ◽  
Household Consumption ◽  
Negative Influence ◽  
Simultaneous Equations ◽  
Least Square ◽  
Domestic Investment ◽  
Two Stage

Abstract: Inclusive economic growth is related to how economic growth achieved can reduce poverty, income inequality, and unemployment. The purpose of this study is to analyze factors that influence inclusive economic growth in Yogyakarta. This study used panel data from 2011 to 2017. Estimation of the model (simultaneous equations) used the Two-Stage Least Square (2SLS) method. The result of the analysis showed that Factors that have a positive impact on inclusive economic growth are household consumption, exports of service/goods, foreign investment, domestic investment, per capita income, and average length of year of study. Whereas the negative influence is the level of open unemployment and imports of service/goods. An increase in household consumption by 2% willincrease gross regional domestic product by 1.5%, decrease the open unemployment rate by 3.0%, decrease poverty by 10.7%, and decrease income inequality by 5.5%.Keywords: inclusive economic growth. simultaneous equations. 2SLS Faktor-Faktor yang Mempengaruhi Pertumbuhan Ekonomi Inklusif di YogyakartaAbstrak: Pertumbuhan ekonomi dikatakan inklusif jika memberi manfaat bagi masyarakat bawah seperti dapat mengurangi kemiskinan, ketimpangan pendapatan, dan pengangguran. Tujuan dari penelitian ini adalah untuk menganalisis faktor-faktor yang mempengaruhi pertumbuhan ekonomi inklusif di Daerah Istimewa Yogyakarta. Penelitian ini menggunakan data panel dari tahun 2011 hingga tahun 2017. Estimasi model (persamaan simultan) menggunakan metode Two Stage Least Square (2SLS). Analisis menunjukkan bahwa faktor-faktor yang memiliki pengaruh positif terhadap pertumbuhan ekonomi inklusif adalah konsumsi rumah tangga, ekspor barang/jasa, investasi asing, investasi domestik, pendapatan perkapita, dan rata-rata lama sekolah. Sedangkan pengaruh negatifnya adalah tingkat pengangguran terbuka dan impor barang/jasa. Peningkatan konsumsi rumah tangga sebesar 2% akan meningkatkan produk domestik regional bruto sebesar 1.5%, menurunkan tingkat pengangguran terbuka sebesar 3.0%, menurunkan kemiskinan sebesar 10.7% dan menurunkan ketimpangan pendapatan sebesar 5.5%.Kata kunci: pertumbuhan ekonomi inklusif. persamaan simultan. 2SLS

scholarly journals The Impact of Public Expenditure on Economic Growth: A Review of International Literature

2019 ◽  
Vol 19 (2) ◽  
pp. 81-101
Author(s):  
Sheilla Nyasha ◽  
Nicholas M. Odhiambo
Keyword(s):  
Economic Growth ◽  
Empirical Evidence ◽  
Government Spending ◽  
Public Expenditure ◽  
Negative Impact ◽  
Positive Impact ◽  
Government Expenditure ◽  
Empirical Literature ◽  
The Impact ◽  
The Relationship

Abstract Research background: Although a number of studies have been conducted on the relationship between public expenditure and economic growth, it is difficult to tell with certainty whether or not an increase in public expenditure is good for economic growth. This lack of consensus on the results of the previous empirical findings makes this study of paramount importance as we take stock of the available empirical evidence from the 1980s to date. Purpose: In this paper, theoretical and empirical literature on the relationship between government expenditure and economic growth has been reviewed in detail. Focus was placed on the review of literature that assessed the impact of government spending on economic growth. Research Methodology: This study grouped studies on the impact of public expenditure on economic growth based on their results. Three groups emerged – positive impact, negative impact and no impact. This was followed by a review of each relevant study and an evaluation of which outcome was more prevalent among the existing studies on the subject. Results: The literature reviewed has shown that the impact of government spending on economic growth is not clear cut. It varies from positive to negative; with some studies even finding no impact. Although the impact of government spending on economic growth was found to be inconclusive, the scale tilts towards a positive impact. Novelty: The study provides an insight into the relationship between public expenditure and economic growth based on a comprehensive review of previous empirical evidence across various countries since the 1980s.

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