Earlier studies of economic growth models are generally characterized by macroeconomics variable using the behavior of capital, population, and exports. In fact, every country has its respective export composition according to human capabilities and technologies. This study involves FDI, high-tech and non high-tech exports, and GDP using 50 countries in the period 1992-2014. The results using random effect model shows that non-high-tech exports affect positively on GDP growth on the entire sample. Given this point, high-tech export industries in both groups (the non-high-tech and the hightech intensive exports countries) have better productivity compared to domestic industry.

The ratio of non-performing loan (NPL) and capital adequacy ratio (CAR) is still a measure of bank soundness in various countries including Indonesia. Interdependence acros bank’s condition, diversity of the size, market structure within banking industry, and macroeconomic variables, may be very complex and dynamic. This paper utilizes the advantage of PVAR model on capturing this complexity to analyze the dynamic relationship between the macroeconomic variables and the soundness of the banks. The result shows NPL of banks with small asset will increases rapidly when interest rate fluctuates. For banks with large asset, the increase in interest rates leads to larger reduction on their CAR. On the other hand, the result shows banks with smaller capital are less able to adapt quickly to an increase in NPL due to exchangerate depreciation, therefore banks with smaller capital should be cautious about the exchange rate risk.

The debate on the effect of trade liberalization on food security poses solid arguments, both in favor as well as against the issue. This study aims to analyze the linkages between trade liberalization (measured using food import tariff exposure) and food security (measured using nutrition intake) in the case of Indonesia. The national food import tariff is decomposed into district-level import tariff exposure and is analyzed based on sectoral tariffs such as agriculture tariffs and food manufacture import tariffs. The analysis employs panel data of 496 Indonesian districts and postulates an association between trade and food security by using fixed-effect regression. By analyzing the effects of tariff exposure towards food consumption in all districts and grouping the districts into 5 (five) islands, we can contribute to the literature on trade liberalization and food security. First, it is found that import tariff exposure is negatively impacting nutrition intake and each sector has a different effect on each nutrition intake. Furthermore, the impact of manufacturing tariffs on calorie and protein intake is slightly higher than that of agriculture tariffs. Second, it is shown that both sectoral import tariffs’ effects vary across islands in Indonesia. Furthermore, the research is expected to contribute to and become a reference for the government in regulating tariffs and other trade liberalization schemes to support households to be food secure.

Empirical studies of the global liquidity spillover on Indonesia’s economy are still relatively limited. Most of the global contagion literature on Indonesia’s economy focuses only on the effects of real shock (on output) due to financial shock. We assert that the effect of global output on Indonesia macroeconomic conditions is a fairly relevant issue to be studied. This research aims to investigate the interdependent relationships between world GDP, world commodity prices, world inflation, trade flows, capital inflow, capital account transactions, reserve accumulation, global liquidity (e.g., global broad money), and monetary aggregates, with regard to Indonesia’s GDP variables and inflation. This paper uses threshold vector autoregression (TVAR) to capture regime changes in the variables of the world economy. World economic data and Indonesia’s economic data were utilized to prove different responses to the world economic situation in two different regimes. This research identified two groups of upper regime and lower regime world variables—namely, world inflation, world GDP, and world commodity prices. TVAR estimation resulted in a smaller residual sum of squares compared to VAR estimation. Different regimes resulted in differences in Indonesia’s economic responses due to the shock of world economic variables. The findings generated by this research are expected to be insightful to monetary policymakers in Indonesia.

This paper specifically examines the macroeconomic impact of the NPL of individual banks using dynamic analysis. Model PVAR proposed as an analytical tool because of its advantages analyze the interdependence between banks in a group of commercial banks in conducting business activities (BOOK), considering the heterogeneity of the bank, the factors that make up the diversity of the bank (unobservable variables), analytical transmission ortogonalisasi Cholesky as well and dynamics of the relationship between variables macro with the bank's internal variables. This method will be very useful for dynamic studies of individual data bank in the banking industry.