How Indonesia Economics Works: Correlation Analysis of Macroeconomics in 2010 - 2019

Olilingo, Fahruddin Zain; Putra, Aditya Halim Perdana Kusuma

doi:10.13106/jafeb.2020.vol7.no8.117

Cited by 16 publications

(9 citation statements)

References 65 publications

(115 reference statements)

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“…This finding is clearly inconsistent with the conclusions drawn by Blejer and Guerrero (1990), Glomm and Ravikumar (1992), Jha (1998) and Afonso et al (2010) who maintain that government investment is the main factor in lowering income inequality. Our finding indicates that local government investment in infrastructure does not provide benefits to increase public economic activity and also does not have an effect on many residents with respect to production activities, which potentially increase income (Olilingo & Putra, 2020). Consequently, government investment does not reduce income inequality.…”

Section: Discussionmentioning

confidence: 64%

Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia

Suhendra¹,

Istikomah²,

Ginanjar³

et al. 2020

JAFEB

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This paper examines how human capital and other economic variables, such as private investment, economic growth, government investment, inflation, and unemployment influence inequality in Indonesia's provinces. We apply panel data model with fixed effect estimation for the data of 34 provinces from the period 2013 to 2019. We develop a new index for human capital using the education index approach. The results show that human capital has a negative and significant effect on income inequality. An increase in human capital is related to an increase in knowledge and competence due to the longer average school year and expectations of the school year. Human capital has increased the possibility of a person being accepted into the job market and earning a higher income; hence, it lowers income inequality. We also find that inflation leads to a higher gap of income distribution. A further implication of this situation is that the rise in inflation causes an increase in low-income people, and as a consequence, makes their lives worse off. This paper will be beneficial for policy-makers for whom human capital, which is measured using an education index, is an important factor that significantly affects income inequality, in addition to other economic factors.

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Section: Discussionmentioning

confidence: 64%

Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia

Suhendra¹,

Istikomah²,

Ginanjar³

et al. 2020

JAFEB

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“…This paper looks at the direct effect of variables on economic growth and it did not examine the threshold level for debt in Malaysia. On the contrary, a study by Olilingo and Putra (2020) found government expenditure has a positive correlation with economic growth.…”

Section: Literature Reviewmentioning

confidence: 85%

Public Debt and Economic Growth Nexus in Malaysia: An ARDL Approach

YOONG¹,

LATIP²,

Sanusi³

et al. 2020

JAFEB

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The aim of this study is to find out the time-series nexus of public debt and economic growth in Malaysia. For an upper-middle income country, Malaysia had experienced over 50% ratio of debt to GDP since 2009 until now. The question arises is whether this trend is healthy to the economy. With a focus into the debt-to-GDP ratio from 1970-2015, this study investigates the short-run and long-run relationship between public debt and economic growth in Malaysia. This study used secondary data by collecting time-series data from the World Bank Data and Bank Negara Malaysia. Autoregressive Distributed Lag (ARDL) model is applied in this study to examine the relationship between debt and economic growth. Based on ARDL framework, it shows that there is a long-run effect between the debt and economic growth in Malaysia. While the significance value of Error Correction Term shows that there is a long-run adjustment in the short run. Generally, this study found government expenditures, in the long run, strongly influence the GDP per capita. Through the findings, the government expenditures could increase the GDP per capita. The study also reveals that any increment of the debt ratio will result in reduction of the GDP per capita.

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“…Still, the APBN/APBD is not understood as an ideological instrument to bring the state's goals closer as a constitutional mandate. The macroeconomic assumptions made are based on narrow goals but ignore the spirit of social justice, such as aspects of income inequality (Olilingo & Putra, 2020;Laurens & Putra, 2020).…”

Section: Introductionmentioning

confidence: 99%

Budget Accountability in The Perspective of Habermas Communicative Action Theory

Mahdalena

Haliah

Syarifuddin

et al. 2021

GRSSE

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Objectively, the purpose of this study is to produce a concept of accountability that is free from domination, which can synergize the accountability of the executive, legislative, and community and is oriented towards the liberation of communication. The expected result of this research is to be able to contribute, both theoretically and practically. The ideas from this research can be used as a reference for other researchers to test empirically with different approaches. Virtually, this research provides an idea for the opening of space for the public to be actively involved in all stages of the public accountability process to give input or criticism in the context of policy-making. To explore social reality as empirical material, the collaboration of several methods in this research was carried out as follows: Observation and interviews. Furthermore, based on the collected data, it will be netted and grouped based on specific categories and codes. Based on the previous description, this study produces a concept of accountability which the author calls triple accountability. Practically in the author's view, this concept is quite effectively implemented. This view adopts Habermas's communicative action theory that communication based rationality effectively overcomes social problems in human life, including government order.

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How Indonesia Economics Works: Correlation Analysis of Macroeconomics in 2010 - 2019

Cited by 16 publications

References 65 publications

Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia

Human Capital, Income Inequality and Economic Variables: A Panel Data Estimation from a Region in Indonesia

Public Debt and Economic Growth Nexus in Malaysia: An ARDL Approach

Budget Accountability in The Perspective of Habermas Communicative Action Theory

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