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AFEBI Economic and Finance Review
AFEBI Economic and Finance Review (AEFR) is an academic journal which is published twice a year (June and December) by The Association of The Faculty of Economics and Business Indonesia. AEFR is aimed as an outlet for theoretical and empirical research in the field of economics and to disseminate the information of the economics research was conducted by members of AFEBI in particular and researchers in general to the academics, practitioners, students, and others who interested in economics research.
Articles
23
Articles
IMPACT OF EDUCATION TO HEAD OF HOUSEHOLD IN INDONESIA

Prabowo, Maudytia Rismalasari ( Institut Pertanian Bogor ) , Priyarsono, Dominicus Savio ( Institut Pertanian Bogor ) , Probokawuryan, Mutiara ( Institut Pertanian Bogor )

AFEBI Economic and Finance Review Vol 3, No 01 (2018)
Publisher : AFEBI Economic and Finance Review

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Abstract

Poverty is one of the most crucial problems in Indonesia which is the fifth city in South-East Asia, have a poverty line around 11.2% in 2014 (BPS 2016). Moreover, poverty in Indonesia has decreased slowly from 2000 (19.1%) until 2016 (10.9%) (Smeru, 2015). It means poverty in Indonesia should be accelerated the decline. One of the things that can reduce poverty is education (Gounder and Xing 2012). Education has a relationship with household consumption per capita. That means, the higher the education of household head, the higher the consumption per capita that household get. The aim of this study is to analyze the impact of education on poverty as measured by households consumption in West Indonesia in 2014. This study uses Two-Stage Least Square (2SLS) methods with cross-section data and obtained from IFLS (Indonesia Family Life Survey). The result shows that there is a relationship between education and other independent variables on poverty. The independent variables that significantly affect poverty are age, age squared, gender, and marital status. The implication of this study is education can increase the number of consumption per capita so that the living standard will increase and poverty will decrease.JEL Classification: I20, I21, I25Keywords: consumption per capita, cross section, education, Two Stage Least Square, poverty.

EFFECT OF CONSUMPTION ON ACCEPTANCE OF VALUE ADDED TAXES ( VAT ) IN INDONESIA DURING 1984-2016

Juliannisa, Indri Arrafi ( Universitas Pembangunan Nasional "Veteran" Jakarta )

AFEBI Economic and Finance Review Vol 3, No 01 (2018)
Publisher : AFEBI Economic and Finance Review

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Abstract

VAT is a tax component that contributes the most to total tax revenue, this study analyzed the relationship of consumption to VAT receipts, but there are other free control variables such as; the money supply, population, and industrial sector revenues. This study refers to previous research that has been carried out by Harju, Kosonen, and Skans (2018) , entitled about “Firm types, pricesetting strategies, and consumption-tax incidence”. This study uses a Time Series Model, that is : is a forecast of future values based on past values of a variable and past mistakes. Time series models are usually use for forecasting. The research method used is quantitative descriptive, by using the Eviews test tool. Because at the beginning of testing this research experienced problems on the classical assumption test, then to overcome the problem of classical assumption test, the test continues using estimation method Newey-West HAC regression model (heteroscedasticity and autocorrelation consistent) standard error or more often called Newey-West HAC. The results of the study show that consumption as the main independent variable has a significant effect, and the control variable that has influence is the money supply and the industrial sector. the increasing amount of consumption each year can stimulate VAT revenues and economic growth in Indonesia.JEL Classification: H20, H25, H26Keywords: Consumption, Industrial sector Money Supply, VAT

THE INFLUENCE OF THE 1998 ASIAN BANKING CRISIS AND THE 2008 GLOBAL FINANCIAL CRISIS TO GROWTH OF THE THIRD PARTY FUNDS OF BANKING SECTOR IN INDONESIA

Nurfaidah, Rani ( Universitas Padjadjaran ) , Hastuti, Fitri ( Universitas Padjadjaran )

AFEBI Economic and Finance Review Vol 3, No 01 (2018)
Publisher : AFEBI Economic and Finance Review

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Abstract

      The purpose of this research is to investigate the influence of macroeconomic fundamentals such as real GDP growth, deposit rate, and return of composite stock price index, and the influence of bank performance such as the growth of secondary reserve and Non Performing Loans to Third Party Funds. The growth of the banking sector in Indonesia in the 1998 Asian Banking Crisis and the 2008 Global Financial Crisis and also to analyze the different influence of independent variables to Third Party Funds growth in both crises. The data used are secondary data with the research object of 101 banks which were established in both crises consistently.      The method which is used in this study is the pooled EGLS (Cross-Section Weight) and fixed effect method. The results show that macroeconomic fundamentals such as real GDP growth, deposit rate, and return of IHSG have significant effect to growth of Third Party Funds, and bank performance such as the growth of secondary reserve has a significant effect while NPL has no significant effect to growth of Third Party Funds in both crises. Besides that, there is a different effect of each independent variable in both crisis periods where all the independent variables in the period of the 1998 Asian Banking Crisis is  not according to the theory, while all of the independent variables in the period of the 2008 Global Financial Crisis is according to the theory.JEL Classification: E50, G01, G21Keywords: Banking Performance, Crisis, Cross-Section Weight,Macroeconomic Fundamentals Third Party Funds Growth

DEVELOPMENT INEQUALITY OF NEW AUTONOMOUS ECONOMIC REGIONS IN LAMPUNG PROVINCE, 2005-2013

Ambya, Ambya ( Universitas Lampung )

AFEBI Economic and Finance Review Vol 3, No 01 (2018)
Publisher : AFEBI Economic and Finance Review

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Abstract

Euphoria to decentralization and regional autonomy in 2000 seemingly causes the decision makers to provide more priority to allocation and transfer, such as public allocation funds and revenue sharing which provides broad discretion for regional governments to manage the use. The role of specific allocation funds which are able to be a trusted stimulus for reaching the national development target and prioritize externalization from regional public service which is ignored. The allocation of balancing funds has a strategic and primary purpose which is the encouragement of a relatively high economic growth and does not cause inequality. The source of funds of the new autonomous regions other than from locally generated revenue are also from transferred funds from the central government in the form of public allocation funds, specific allocation funds and revenue sharing. Those sources of funding contribute to the creation of regional economy development inequality. Research results show that in the last three years the inequality of economic development in new autonomous regions has narrowed. That condition is sustained by the willingness of public allocation funds, specific allocation funds, and while revenue sharing does not significantly influence economic development inequality in the regions.JEL Classification: H70, H77, O10Keywords: Economic Growth, Inequality, Transfer funds

DEVELOPMENT INEQUALITY OF DISTRICT/ CITY IN SOUTH SUMATRA ( 2008 - 2015)

Rohima, Siti ( Universitas Sriwijaya )

AFEBI Economic and Finance Review Vol 3, No 01 (2018)
Publisher : AFEBI Economic and Finance Review

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Abstract

This study aims to determine the effect of PAD, DAU, regional expenditure andeconomic growth to the development gaps in the province of South Sumatra.The data used is secondary data in the GRDP, regional expenditure, PAD andDAU per district / city in the period 2008- 2015. In this study, using a quantitative approach. Technical analysis of using Williamson index calculation and linear regression. These results indicate that the PAD and Expenditure have a positive effect, on the contrary DAU and economic growth have a significant negative effect on the development gaps District / City in theprovince of South Sumatra.JEL Classification: H70, H77, O10Keywords: DAU, Development inquality, Economic Growth, PAD, RegionalExpenditure

THE IMPACT OF NON-FOOD COMMODITY INFLATION ON CHANGES OF HOUSEHOLD WELFARE IN ACEH PROVINCE

Yasrizal, Yasrizal ( Universitas Teuku Umar )

AFEBI Economic and Finance Review Vol 3, No 01 (2018)
Publisher : AFEBI Economic and Finance Review

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Abstract

The relations of inflation and poverty can be seen from the contribution commodities of poverty contributor. Increasing prices on the commodity of poverty contributor leads to declining real incomes and income loss in households causing poverty. The commodity of poverty contributor is dominated by fuel and LPG commodities. The AIDS model is a  development of the Engel curve and Marshall equations derived from the theory of satisfaction maximization. This model uses the budget share ofhousehold on a selected commodity to represent demand variables. This study is an empirical study. The data used are primary and secondary data obtained from field research and literature. The study is located in Banda Aceh and Meulaboh. By using an almost ideal model of demand or an AIDS model, it will be seen that household behavior responds to changes in the price of the commodity of poverty contributor. From observation, inflation rate of non food commodity has a big effect on the welfare of Aceh Province community, both for Banda Aceh and Meulaboh households. The on-food commodity inflation has a huge influence to reduce household welfare inMeulaboh.JEL Classification: D10, D11, D12Keywords: AIDS Model, Elasticity, Inflation, Non-food Commodity of PovertyContributor.

Determinants of Corporate Value (Empirical Studies of Manufacturing Sector 2012-2015 BEJ)

Suartini, Sri ( Singaperbangsa University ) , Padikromo, Suparno ( Singaperbangsa University )

AFEBI Economic and Finance Review Vol 2, No 02 (2017)
Publisher : AFEBI Economic and Finance Review

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Abstract

The study aims to conduct analysis themselves and provide empirical evidence that independent variable Managerial Ownership, ownership of Instisusional both partian or simultaneous effect on the value of the Corporation. This research uses the approach of kuantitative with a sample of 50 manufacturing companies registered in BEI during 2012-2015 with purposive sampling method. Then technical data analysis done with test statiistik using multiple regression. Research results showed variable Managerial Ownership and Institutional Ownership affect the value of the company. This finding is interesting that increased value of the companys success depends on the ability of the company to the maximum resources to empower and implement company policies that have been defined not by a factor of incentive Manager and supervision of instituonal.JEL Classification: G10, G17, G32Keywords: Institutional Ownership, Managerial Ownership, The Value of The Company

Analysis of Uneven Regional Development in North-East, Middle–Southeast, and West-South Regions of Aceh Province

Wahyuningsih, Yayuk Eko ( Teuku Umar University ) , Putra, Irfan Syah ( Teuku Umar University ) , Meliana, Eni ( Teuku Umar University )

AFEBI Economic and Finance Review Vol 2, No 02 (2017)
Publisher : AFEBI Economic and Finance Review

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Abstract

Aceh is a province of Indonesia that currently consists of 23 districts/municipalities that are generally divided into three (3) regions, namely, the Northeast (11 districts/municipalities), the Middle-southeast (4 districts) and the Southwest (8 districts/municipalities) regions. These regions have different natural, human, social, political, and cultural resources. These differences have caused uneven economic development, which has further caused developmental disparity among the regions. This study aims to assess the extent of developmental disparity among regions and to analyze the impact of Gross Regional Domestic Product per capita on regional developmental disparity in the three (3) regions of Aceh province in the period of 2000-2014. The data used in this research are secondary data that were obtained from the Central Statistics Agency (BPS), and the Regional Development Planning Board (Badan Perencanaan Daerah/Bappeda) of Aceh Province. To identify the level of inequality, the researcher utilizes Williamson Index;whereas to determine theimpact of Regional GDP per capita on the inequality of regional development, the researcher utilizes a semi logarithmic linear regression model that includes a discussion on the correlationcoefficient (R), determination coefficient (R Square), and t test using SPSS.Based on estimation results, the researcher discovers that, for the North-East region,the value of correlation coefficient (R) is 0.8032, the value of determination coefficient is 64.52%, and the equation for Y isY = -1.8942 + 0,1263X;for the Middle-Southeast region, the value ofcorrelation coefficientis0.6760, the value of determination coefficient is 45.70%, and the equation for Y is Y = 0.6441 + 0,0400X, and;for the Southwest region,the value ofcorrelation coefficientis 0.4045, the value of determination coefficient is 16.36%, and the equation for Y is Y = -0.4703 + 0,0318X. As for the t test, the researcher discovers that for North-East region the per capita regional GDP wastcount> ttable(4.671> 1.7823);for the Middle-Southeast regional tcount<ttable(-3.178<1.7823), and; for the Southwest region tcount<ttable (1.532 <1.7823). These per capita regional GDP values mean that only in the Northeast region does the variable of per capita regional GDP have a real impact on the variables of regional developmental disparity. This is consistent with the fact that the Northeast region is much more advanced and developed than the other two regions.JEL Classification: O10, O11, O15 Keywords: GDP, Index of Williamson and Discrepancy, Per capita GDP, Total of population

Interest Rate Pass-Through: Empirical Study Towards Monetary Policy Transmission Effectiveness in Indonesia

Hasanah, Heni ( Bogor Agricultural University )

AFEBI Economic and Finance Review Vol 2, No 02 (2017)
Publisher : AFEBI Economic and Finance Review

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Abstract

This research aims to measure the effectiveness of monetary policy transmission, especially through the interest rate channel. The analysis was conducted on the first stage of its transmission, namely Interest Rate Pass-through (IRPT). IRPT refers to condition in which retail interest rate (both deposit and lending rate) responds to changes in policy rate of central bank. IRPT was measured using Error Correction Model (ECM) for time series data in the period of January 2010 - December 2015. The results of this study indicated that degree of long term and short term IRPT is incomplete for deposit and lending rate. In addition, IRPT for deposit rate is higher than lending rate, but the adjustment process of lending rate faster than deposit rate. Finally, model that include other variables (macroeconomic and internal banking indicator) generate long term IRPT which is smaller than the standard model. This results implies that the Central Bank, the FSA, and government needs to pay attention to the stability of the other variables that may interfere or reduce the effectiveness of monetary policy through the interest channel.     JEL Classification: E42, E43, E52Keywords: Deposit rate, ECM,  IRPT, Lending Rate, Policy Rate

Spillover Effect of Global Financial Cycle To Asset Markets in Asean-5 Countries: A Structural VAR Approach

Andaiyani, Sri ( University of Indonesia ) , Falianty, Telisa Aulia ( University of Indonesia )

AFEBI Economic and Finance Review Vol 2, No 02 (2017)
Publisher : AFEBI Economic and Finance Review

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Abstract

An upsurge and volatility of capital flows to Emerging Asian Economies indicated that there is the potential effect of global financial cycle to emerging market. It provides an overview of investor risk aversion in short term investment after financial crisis 2008. Global financial cycle could have a significant impact to asset prices, including equity prices and property prices. Rey (2015) has triggered an interesting discussion about global financial cycle. She found that there was a global financial cycle in capital flows, asset prices and credit growth. This cycle was co‐moves with the VIX, a measure of uncertainty and risk aversion of the markets. Therefore, this study attempts to analyze empirically global financial cycle shocks, measured by the VIX, on equity prices and property prices in ASEAN-5, namely Indonesia, Malaysia, Singapore, Thailand and Philippines. We estimate quarterly frequency data from Q1 1990 to Q2 2016 with Structural Vector Autoregressive (SVAR) approach. The result of this study showed that global financial cycle has a negative significant impact on the ASEAN-5 asset markets, in spite of the response of shock differs by country and size. This result is consistent with ASEAN-5 as small open economies that remain vulnerable to the global factor. This study contributes to the literature in several ways. First, we identify not only cyclical expansions or contraction in asset markets but also the impact of global financial cycle to asset markets in ASEAN-5 countries. Second, we investigate whether there are heterogeneous responses of ASEAN-5 countries to global financial cycle shocks. Third, we also identify the pattern of cycle in ASEAN-5 countries.JEL Classification: F30, F37, F42Keywords: ASEAN, Asset Markets, Global Financial Cycle, SVAR