This study aims to analyze the influence of bank interest and exchange rate towards composite stock price index in Indonesia under the period of January 2010-December 2016. The method applied is Vector Error Correction Model (VECM). The findings show that this method aces to show the pace of adjusting balance from the short period up to long period towards stock price index variable. The gap between bank interest level and the exchange rate has the low impact towards composite stock price index.For a longer period, the exchange rate would bring negative impact to composite stock price in Indonesia. Meanwhile, in a short period, it would not affect exchange rate and bank interest rate towards stock price index in Indonesia.Keywords: Stock Price, Exchange Rate, Vector Error Correction Model, Bank Interest Rate Background of the StudyA macroeconomy stability of a country is a state to be fulfilled in order to maintain the continuance of economic development. Economy stability is reflected in several macroeconomy indicators such as BI rate, inflation, currency exchange rate, economic development, share price index, and a number of unemployment. The development of this macroeconomy can be predisposed by either domestic factors or international factors. Domestic factors influencing the economic condition are president and vicepresident election, head of a certain province or district or county election, and disasters. Meanwhile, the globalized economy development has caused a dynamic fluctuation in economic stability. One of the external factors which are growing nowadays is VUCA (Vulnerability, Uncertainty, Complexity, and Ambiguity). To anticipate, the government and monetary authority can elaborate their policies pleasingly so that How to cite this article: Imam Mukhlis,
This study aims to analyze the relationship between fiscal decentralization, fiscal capacity, financial independence and financial expenditure areas in achieving social justice. In this case, the East Java Province Indonesia is supported by the existence of local government district / municipality became the main object of study during 2010 -2014. The needed data are such as; financial balance data, regional revenue, the amount of local spending and social justice data on people's lives. Data analysis method used is Partial Least Square (PLS). The results provide the conclusion that the implementation of the fiscal decentralization policy gives positive and significant impact on local fiscal capacity. Fiscal capacity gives positive and significant impact on the local financial independence. Local financial independence gives positive and significant impact on the structure of the shopping area. The structure of local government spending has a significant effect on the achievement of social justice areas. In this case, the fiscal capacity and financial independence have no direct impact significantly on the achievement of social justice in the various districts / cities in East Java. In addition, this study also provides important conclusion that there is a significant indirect effect of fiscal decentralization on social justice through local fiscal capacity, local financial independence and the structure of local government spending.
This research aims to analyze the interaction between equalization funds, regional financial and human development index in East Java Province, Indonesia for [2008][2009][2010][2011]. The method of analyze is Partial Least Square (PLS). The dependent variable used is equalization funds as a proxy for fiscal decentralization while the intervening variable used is fiscal capacity, fiscal independent and structure of regional government expenditure; the dependent variable used is human development index as proxy for social welfare live. The study revealed that equalization fund has a negative direct effect to fiscal capacity, fiscal capacity has a positive direct effect on financial independent, fiscal capacity has no negative direct effect on structure of regional government expenditure, financial dependent has positive direct effect on human development index, financial dependent has a positive direct effect on structure of regional government expenditure, and structure of regional government expenditure has negative direct effect on human development index. Based on this conclusion, regional government must focus on allocating the equalization fund to serve the public good provision.
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