https://e-journal.unair.ac.id/JDE/issue/feed JDE (Journal of Developing Economies) 2022-12-06T00:00:00+07:00 Deni Kusumawardani jde@feb.unair.ac.id Open Journal Systems <p align="justify">JDE (Journal of Developing Economies) is a journal published by the Department of Economics, Faculty of Economics and Business, Universitas Airlangga with the ISSN <a href="https://portal.issn.org/resource/issn/2541-1012" target="_blank" rel="noopener">2541-1012</a> (print version) and <a href="https://portal.issn.org/resource/issn/2528-2018" target="_blank" rel="noopener">2528-2018</a> (online version). This journal is published every 6 months, June and December. All manuscripts received by the editor of <strong>JDE (Journal of Developing Economies)</strong> will be reviewed by peer reviewers according to the field of economics studies (at least 2 people) with <strong>a double-blind peer review policy</strong>. </p> <p align="justify">All submissions should be formatted in accordance with <a href="https://drive.google.com/file/d/1N68I3O2--FsFmWxuV0rt_S_5_AWjfazm/view?usp=sharing">JDE (Journal of Developing Economies) template</a> and through Open Journal System (OJS) only.</p> <p align="justify"> </p> https://e-journal.unair.ac.id/JDE/article/view/25722 Debt and Economic Growth: The Case of Indonesia 2022-10-20T01:10:54+07:00 Vita Kartika Sari vitahanifanaira@gmail.com <p><em>Debt is an intriguing state financing to be studied and analyzed because debt can have positive or negative impacts. Sources of debt can be from the issuance of domestically-sold bonds or foreign investment. Indonesia uses debt instruments to address the fiscal gap and increase capital for economic development. This study aims to analyze the impact of debt on Indonesia’s economic growth and investment during the 1970-2018 period, using the Autoregressive Distributed Lag (ARDL) method. The study found that debt had a negative effect on GDP in the short and long run. Meanwhile, it did not affect investment in the short run but had a negative effect in the long run. The study model also had good stability as a result of Cusum and Cusum of Squares testing. Thus, appropriate debt management policies are needed to support economic growth.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Vita Kartika Sari https://e-journal.unair.ac.id/JDE/article/view/38261 African Continental Free Trade Area Agreement and the Agricultural Performance in Nigeria in the Post Covid-19 Era: A Simulation Focus on Agricultural Output, Trade, and Employment 2022-08-18T09:58:56+07:00 David Terfa Akighir akighirdavidterfa@gmail.com Emmanuel Tordue Kpoghul kpoghultordue@gmail.com <p><em>The COVID-19 pandemic has unleashed negative economic consequences on the global economies and Nigeria inclusive. In response, Nigeria has launched the Economic Sustainability Plan (ESP) to leverage the potential gains of the African Continental Free Trade Area Agreement (AfCFTA) to accelerate agricultural performance in the post-COVID-19 era. Thus, this paper investigated the potential impact of AfCFTA on the performance of the agricultural sector in Nigeria in the post-COVID-19 era focusing on Agricultural output, trade and employment within the framework of a small macro-econometric model. The study used secondary data from 1970 to 2018 for a within-sample forecast and a twelve-year out-of-sample forecast spanning from 2019 to 2030. Two simulation experiments based on AfCFTA tariff reduction lines were conducted. Findings revealed that with tariff reduction under the AfCFTA, there is an increase in agricultural output, exports, employment, and the share of agriculture to GDP growth, as well as actual private consumption in Nigeria. The study concludes that if the AfCFTA is implemented, it will boost agricultural sector performance in Nigeria during the post-COVID-19 era. Based on these findings, the study recommended that the country implement mechanisms to overcome the challenges militating against agricultural production and exports in the economy to maximize the potential gains that AfCFTA provides. The government should also streamline its expenditures and invest hugely in infrastructural facilities such as roads, electricity, and expansion of sea-port facilities, communication networks and earth-dams to encourage dry-season farming activities.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 David Terfa Akighir, Emmanuel Tordue Kpoghul https://e-journal.unair.ac.id/JDE/article/view/34575 Crude Oil Price and Standard of Living Nexus: Evidence from Nigeria 2022-05-12T10:03:28+07:00 Kabiru Saidu Musa Kabirusaidumusa@gmail.com Tahir Hussaini Mairiga mairiga2003@gmail.com Yahaya Yakubu fatyat2009@gmail.com <p><em>This article is carried out through an analysis of the influence of crude oil prices on the standard of living in Nigeria by using additional variables as supporters, such as crude oil income, inflation, and exchange rates. According to data availability, the utilization data used in this study is the annual time series data from 1981-2019. The main findings are: (1) there is a long-term equilibrium connection among the series. (2) crude oil price has a negative impact on the standard living. (3) crude oil revenue negatively affects the standard of living. (4) inflation has a negative impact on the standard of living. (5) exchange rate positively affects the standard of living. (6) convergence speed indicates that system movement to the equilibrium path is quick. Therefore, this implies that despite the abundance of oil in the country. The masses do not witness its impact. Diagnostic checks confirmed the perfectness of the model. DOLS, FMOLS and CCR as robustness checks revealed similar results with ARDL long-run results.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Kabiru Saidu Musa, Tahir Hussaini Mairiga, Yahaya Yakubu https://e-journal.unair.ac.id/JDE/article/view/36547 Does Switching Cost Affect Dual Rural Banks Market Power? 2022-08-18T09:57:19+07:00 Moh Najikhul Fajri moh.najikhul.fajri-2021@feb.unair.ac.id Rudi Purwono rudipurwono@feb.unair.ac.id <p><em>This study aims to review the effect of switching costs on rural bank market power. This study is using dynamic panel regression of the Generalized Method of Moments (GMM). This paper used panels of 1266 rural banks and 113 Sharia Rural banks from 2013 to 2019. To further analyze this study using Lerner Index as proxies of market power, Bertrand Competitions models as proxies of switching costs, and banking indicators covering bank size, equity, non-interest income, and the burden of allowance for productive assets (Lost Loans Provision). The results show that switching costs have a significant positive effect on the conventional rural bank and negatively affect sharia rural bank's market power. This condition is caused by various reasons, namely the limited choice of rural banks so that consumers survive the switching costs charged. Meanwhile, in sharia rural bank transparency is clearly seen on the side of mudharobah and musyarakah which makes it unable to increase financing margins freely. </em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Moh Najikhul Fajri, Rudi Purwono https://e-journal.unair.ac.id/JDE/article/view/33980 Determinants of Income Inequality Villages and Cities in Indonesia 2022-03-13T14:00:38+07:00 Wike Juniati wikejuniati6@gmail.com Muhammad Latif Abdullah latifabdullah062@gmail.com Muhammad Ghafur Wibowo muhammad.wibowo@uin-suka.ac.id <p><em>The image of development in Indonesia is getting worse when development progress is felt by the upper class. The segmentation of the upper and lower levels of society is reflected in the gap between life in the village and the city. The purpose of this study is to analyze the determinants of income inequality based on the classification of villages, cities, and between villages and cities in Indonesia. The data analysis method used is panel data regression which is an analytical technique that is observed over a certain period. The data used is annual secondary data from 2016-2020 in 34 provinces of Indonesia. Inequality analysis is carried out by calculating the Gini index based on household expenditure data. Economic growth, population, human development index, domestic investment, technology development index, and employment opportunities are independent variables. The results of this study found that there was a significant negative relationship the technology development index and positive relationship population in city and between village and city areas. Then the variable employment opportunity have a significant negative relationship to income inequality in the village.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Wike Juniati, Muhammad Latif Abdullah, Muhammad Ghafur Wibowo https://e-journal.unair.ac.id/JDE/article/view/38898 Relationship between Outward FDI and Home Country Exports: An Empirical Study of Bangladesh 2022-10-11T00:45:21+07:00 Ravinder ravinderhsbgju@gmail.com Poonam aryapoonam4008@gmail.com Vijender Pal Saini vijenderhsb@gmail.com <p>The present paper investigates the association between outward FDI, exports and growth using data from 1990-2021. The novel estimation procedure of ARDL is used in the study to examine the long and short-run dynamics. Further, the causal relationship between outward FDI, exports and growth is also examined. The results imply that exports, OFDI, and economic growth in Bangladesh have a long-term cointegrating relationship. Additionally, FDI from abroad helps to increase the nation's exports. The study's conclusions are supported by the negative coefficient of the error-correcting term. The study provides useful insights for the policymakers of the country.</p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Ravinder, Poonam, Vijender Pal Saini https://e-journal.unair.ac.id/JDE/article/view/37340 Effect of Cigarette Prices on Cigarette Consumption in Indonesia: Myopic and Rational Addiction Studies 2022-08-18T10:37:25+07:00 Indra Lesmana indra.bayu92@ui.ac.id Khoirunurrofik Khoirunurrofik khoirunurrofik@ui.ac.id <p><em>This study analyzes the effect of cigarette prices on cigarette consumption in Indonesia. By using aggregate macro data on cigarette consumption (administrative data) for 2015-2020, estimated using OLS, 2SLS, GMM, and System-GMM, we found that cigarette prices have a negative and significant effect on cigarette consumption based on myopic and rational addiction models. The estimation results also confirm that cigarettes are inelastic products where price changes do not significantly impact cigarette consumption. It implies that the Government needs to significantly increase excise rates and minimum selling prices regularly to control cigarette consumption more effectively.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Indra Lesmana, Khoirunurrofik https://e-journal.unair.ac.id/JDE/article/view/40421 An Analysis of The Influence of Foreign Direct Investment on Emerging Market Economies Growth 2022-11-15T11:39:10+07:00 Akhmad Jayadi akhmad-jayadi@feb.unair.ac.id Sigit Budi Prasetyo sigitbudi.sp@gmail.com <p><em>This study examines FDI influence on economic growth in 24 emerging market economies. The generalized Method of Moment (GMM) method is used in this research using panel data to see the effect of FDI on economic growth. This study also uses the Panel Vector Error Correction Model (PVECM) method to see the short-term relationship and Fully Modified Ordinary Least Square (FMOLS) to see the long-term relationship. This study finds strong empirical evidence indicating that the influence of FDI on economic growth is statistically significant in the short and long term. These results vary if we include the level of development reached by countries in emerging market economies. In upper-middle and lower-middle-income countries, FDI positively and greatly influences economic growth. Different results occur in high-income countries, and the results are positive and insignificant. The results show that FDI in high-income countries tends to leave these countries.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Akhmad Jayadi, S.E., M.Ec.Dev., Sigit Budi Prasetyo https://e-journal.unair.ac.id/JDE/article/view/35137 Measuring Corruption in Indonesia Using Fuzzy Logic 2022-04-25T12:24:17+07:00 Joko Waluyo mrwaluyo@gmail.com Tri Haryanto tri.h@feb.unair.ac.id Bambang Eko Afiatno afiatno@yahoo.com Tri Achmadi mrwalyo@gmail.com <p><em>Corruption is a phenomenon not easy to observe. Corruption theory and existing definitions are ambivalent, both in size and level. Mathematical models, and &nbsp;econometrics are prone to statistical errors. Fuzzy logic facilitates more humane modeling and analysis. Fuzzy logic is not bound by strong assumptions, as a solution to solve complex problems, and not precise, including corruption analysis. The main objective of this study is to measure corruption in Indonesia. The research method used fuzzy logic by specifying the Mamdani fuzzy inference system (FIS) model. FIS Mamdani was chosen because it is more human manner. Sources of secondary data used in this research from various institutions. The results show that corruption time series data can be produced. During the research year (1995-2020), corruption that occurred in Indonesia was 36.14 percent of real GDP per capita.</em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Joko - Waluyo, Tri Haryanto, Bambang Eko Afiatno, Tri Achmadi https://e-journal.unair.ac.id/JDE/article/view/37433 Does Good Financial Development Attract Tourists? Evidence From ASEAN Countries 2022-08-18T13:33:25+07:00 Makmur Tradesman Hasudungan Panjaitan makmur.panjaitannn@gmail.com <p>This study aims to examine the effect of financial development on tourism demand in member countries of Association of Southeast Asian Nations (ASEAN). The indicators are financial development index; financial institution depth index; financial institutional access index; and financial institutions efficiency index. Several control variables employed in this study are consumer price index, health expenditure, poor air quality, and trade openness. This study uses panel data between 2010 and 2018 from 10 ASEAN countries. Data are sourced from international institutions such as the World Bank, United Nation of World Tourism Organization (UNWTO), International Monetary Fund (IMF), and World Health Organization (WHO). The method used in the analysis is the static panel data regression. The results show that financial development has a positive effect on tourism demand. In terms of control variables’ impact, consumer price index, health expenditure and trade openness have a positive impact, whereas poor air quality has a negative impact. The current study’s implication on policy making is to develop the financial sector by increasing the number of ATMs and improving the mobile banking facilities</p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Makmur Tradesman Hasudungan Panjaitan https://e-journal.unair.ac.id/JDE/article/view/37591 The Demand Creation Effect on the Indonesian Manufacturing Industry 2022-08-18T10:04:00+07:00 Lusi Sulistyaningsih lusisulistya@gmail.com T.M. Zakir S. Machmud lusisulistya@gmail.com <p>This study analyzes the impact of Foreign Direct Investment that creates a demand creation effect on domestic companies in the Indonesian manufacturing industry in 2010-2015. This study uses Input and Output data for 2010 and Industri Besar Sedang data in 2010-2015, both of which come from the Badan Pusat Statistik. The Fixed Effects model came out as the best model because it reflected different firm characteristics. The study concludes that the larger the foreign presence and the firm’s size in an industry, the more demand-creating effect it will create. However, FDI enters highly concentrated industries and industries with high levels of imports, which will negatively affect the demand creation effect.</p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Lusi Sulistyaningsih, T.M. Zakir S. Machmud https://e-journal.unair.ac.id/JDE/article/view/31429 Tourism Development Towards International Competitive Tourism in Promoting The Economy of East Java 2022-02-26T10:31:29+07:00 Renta Yustie rentayustie@uwks.ac.id Ricky Angga Ariska rickyanggaariska@gmail.com Fadilla Purwitasari fadilla.purwitasari@gmail.com <p><em>The tourism sector is one of the economic sectors that has a characteristic and contributes to the GRDP (Gross Regional Domestic Product) in East Java. East Java has a large tourism potential with a pattern of tourism development that can contribute to increasing East Java's economic growth. The role of the tourism sector in East Java can improve the national economy and contribute to the national GDP (Gross Domestic Product) of Indonesia. This study aims to determine the development of the tourism sector in East Java during 2016 to 2020 using the LQ (Location Quotient) method so as to produce the tourism sector in the basic or non-basic sector category. The data used is secondary data and this research is a quantitative research. The results of the calculation of LQ (Location Quotient) can help develop and build the tourism sector that is in the basic or non-basic category.</em></p><p> </p><p><strong><em>Keywords: </em></strong><em>LQ, GDP, Tourism Sector, Development Economic, East Java</em><em></em></p> 2022-12-06T00:00:00+07:00 Copyright (c) 2022 Renta Yustie, Ricky Angga Ariska, Fadilla Purwitasari