The flow of globalization is a problem for almost all states in the world. Every country is currently conducting trade openness to support domestic needs and encourage economic growth. The trend of Indonesia's trade openness ratio which tends to decrease, it has not trend with Indonesia's economic growth. This study aims to analyze the relationship between trade openness and economic growth in Indonesia, both in the short and long term, using various trade openness indicators. The type of research data is secondary data in an annual time series from 1980 to 2019. The method used in this study is Autoregressive Distributed Lag (ARDL). All trade openness measure (exports plus imports, exports, and imports) used in this study show a positive and significant relationship between trade openness and economic growth in Indonesia over the long term but a negative relationship in the short term. For a long term, there has been a negative relationship between Foreign Direct Investment (FDI) and economic growth in Indonesia; however, there is a positive relationship in the short term. Human capital has a long term positive relationship with economic growth in Indonesia, but it is not significant in the short term. This study suggests a need for an increase in trade performance in a short term by reviving the real domestic market, increasing monitoring and cooperation from all stakeholders involved in supporting FDI, and providing easy access for people who are less able to pursue higher education.
Tax management is the right, appropriate, and effecient application of tax rules in order to achieve income and liquidity accordingly. The tax is twofold: tax avoidance and tax evasion. This research is a purpose to know the effect of tax avoidance towards the cost of debt in manufacturing companies and find about the tax avoidance which includes illegal, but can lead to the injustice that would harm the state. The samples used in this research are 30 manufacture companies listed in Indonesia stock exchange (BEI). Type of data is secondary data from each for manufacture companies listed in Indonesia stock exchange (BEI) five years from 2011 until 2015. The samples were taken by purposive sampling technics. Analysis of data used with panel data regression with Fixed Effect Model (FEM) estimation and Eviews 9 SV programming. A hypothesis test used are coefficient determination test (R Square), F test, and t-test. The result of the research shows that Tax Avoidance (TAX) has positive and significant effect on the cost of debt on manufacture companies. For independent variable others, manufacture companies size and firms age have negative and significant. However, Leverage has positive and significant effect on cost of debt in companies. Therefore should add another variable closely related to tax avoidance and cost of debt.
This paper analyzes the role of currency hedging on non-financial firm’s performance. Most firms on the sample have anticipated the currency mismatch risk by balancing the ratio of foreign debt to their asset fenominated in foreign currency. Using panel estimation, we find that there is no evidence of currency hedging activities to affect capital and performance of firms. The result underlines the low intensity of currency hedging activities due to lack of incentives, which is inline with the low derivative transaction within the underdeveloped foreign currency market. This finding may raise a concern since currently the development of foreign liabilities for non-financial firmsin Indonesia is increasing in significant level, as well as the increase risk of domestic currency depreciation. For these reasons, Bank Indonesia should take proactive policies to deepen foreign currency market as well as derivative market by providing a more comprehensive and market friendly hedging instruments to banks and non-financial firms, while keep promoting the benefit of currency hedging.Keywords: Hedging, derivative market, foreign liability.JEL Classification: F31, G31
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.