JDE (Journal of Developing Economies) https://e-journal.unair.ac.id/JDE <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> en-US <p> <img src="/public/site/images/jurnalekonomi/cc_by_lebih_kecil1.png" alt="" /></p><p><span>JDE (Journal of Developing Economies) (p-ISSN: 2541-1012; e-ISSN: 2528-2018) is licensed under a <a href="https://creativecommons.org/licenses/by/4.0/" rel="license">Creative Commons Attribution 4.0 International License</a></span></p><div>Authors who publish with JDE (Journal of Developing Economies) agree to the following terms:</div><div><ol><li>The journal allows the author to hold the copyright of the article without restrictions.</li><li>The journal allows the author(s) to retain publishing rights without restrictions</li><li>The legal formal aspect of journal publication accessibility refers to <span lang="IN">Creative Commons Attribution </span>(CC BY) </li></ol></div> jde@feb.unair.ac.id (Deni Kusumawardani) shochrul-r-a@feb.unair.ac.id (Shochrul Rohmatul Ajija) Tue, 28 Jun 2022 08:38:13 +0000 OJS http://blogs.law.harvard.edu/tech/rss 60 Technical Efficiency of the Indonesian Textile and Textile Product Industry https://e-journal.unair.ac.id/JDE/article/view/23738 <p><em>This study investigates the determinants of the Indonesian textile and textile product (TPT) industry’s technical efficiency. Employing the rich, balanced panel data of 3,365 firms over 2007-2013 with a non-parametric approach to the Data Envelopment Analysis (DEA) Bootstrapping and Tobit regression, this study discovers that the production operations are inefficient, especially the companies upstream. The improvement of technical efficiency is driven by firm size, market concentration, foreign ownership, and exports. An intriguing finding is that the capital-labour ratio negatively impacts efficiency, implying higher capital for production will make the production even more inefficient. The machines in most TPT firms are old, so larger capital may not help. This study recommends the government design policies that support the machinery restructuration so that capital can support production efficiency.</em></p> Imroatul Amaliyah, Dyah Wulan Sari, Mohammad Zeqi Yasin Copyright (c) 2022 Imroatul Amaliyah, Dyah Wulan Sari, Mohammad Zeqi Yasin http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/23738 Tue, 28 Jun 2022 00:00:00 +0000 The Analysis of Coal Competitiveness and the Factors Affecting Indonesia’s Coal Exports to Main Destination Countries (A Case of 8 Destination Countries) https://e-journal.unair.ac.id/JDE/article/view/33183 <p><em>Indonesia is one of the largest coal producers globally, with coal as the main export commodity compared to other commodities in the mining sector. The more competitive the world coal market is, the Indonesian coal market share faces threats from other coal exporting countries. The increasing commitment of countries to reduce air pollution by cutting the use of coal for power plants at PLTU. This study analyzes the competitiveness and various factors that influence the competitiveness of Indonesian coal in 8 export destination countries. This study seeks to determine how the development of Indonesia’s coal competitiveness to the eight central destination countries and what factors affect Indonesia’s coal exports for the 2009-2020 period to the eight central destination countries using RCA analysis and panel data regression. Based on the analysis, results show that the competitiveness of Indonesia’s coal exports to 8 destination countries is excellent. It can be seen from the RCA value obtained by each country from 2009-to 2020, which is greater than 1. Meanwhile, based on the results of panel data, regression estimates with random models show that GDP per capita, population, and coal prices have a negative and significant impact on coal competitiveness in 8 Indonesian coal importing countries. The study results did not find the effect of exchange rates and CPO prices on coal competitiveness in 8 Indonesian coal importing countries.</em></p> Randy Admi, Samsubar Saleh, Gigih Fitrianto Copyright (c) 2022 Randy Admi, Samsubar Saleh, Gigih Fitrianto http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/33183 Tue, 28 Jun 2022 00:00:00 +0000 Determinants of Economic Growth: The Case of The United States of America https://e-journal.unair.ac.id/JDE/article/view/34414 <p><em>The purpose of this article is to find long- and short-term determinants of U.S. economic growth over the period 1970-2016. By using cointegration analysis and vector error correction models, we compensated for many variables that were not previously linked together. Empirical analysis shows that consumer spending, population, domestic investment, FDI inflows, and exports are long-term sources of economic growth, but FDI outflows, military spending, taxes, and imports are not considered long-term sources of economic growth. grow. In the short run, all variables have no effect on economic growth.</em></p> Sayef Bakari, Sofien Tiba Copyright (c) 2022 Sayef Bakari, Sofien Tiba http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/34414 Tue, 28 Jun 2022 00:00:00 +0000 Government Debt-Economic Growth Nexus in ASEAN-4 Countries https://e-journal.unair.ac.id/JDE/article/view/30122 <p><em>Given a background of controversial political and theoretical academic debate and diverse empirical result, as Checherita and Rother (2010) concluded government debt and economic growth relationship is a country specific issue. This paper aims to investigate the causal and dynamic effect of government debt on output growth in the context of developing economies with generally medium debt regime in ASEAN-4 countries. Namely, Indonesia, Malaysia, the Philippines and Thailand during 1985 to 2019 years. A robust multi-variable vector autoregressive (VAR) model at level is employed to capture the long run relations, and causality is addressed using Toda-Yamamoto (1995) approach. As a by-product of the analysis the effect of government debt on two essential factors of sustainable GDP growth, namely, private capital formation and human capital is examined. The findings of this paper which contrast with the general negative effect found in some empirical studies for developing countries, shows debt does not cause output growth in Indonesia, Malaysia and Thailand but the reverse is true. GDP response to debt shock is negative, positive and positive, respectively yet statistically insignificant. In other hand, in the Philippines the result shows the economy is debt-driven as debt positively cause GDP without improving private investment or human capital. Overall, the findings support well debt management. Given current debt regime, improvements on tax collection and government fund allocation in terms of priorities and efficiencies must be continued.</em></p> <p><em> </em></p> Hoda Hajian, Azali Mohamed, Shivee Ranjanee A/P Kaliappan Copyright (c) 2022 Hoda Hajian, Azali Mohamed, Shivee Ranjanee A/P Kaliappan http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/30122 Tue, 28 Jun 2022 00:00:00 +0000 Strategies for Increasing the Use of Rooftop PV in Indonesia https://e-journal.unair.ac.id/JDE/article/view/35679 <p><em>The current high energy consumption can cause scarcity as Indonesia's population growth has increased quite significantly. Alternative energy is needed to anticipate energy problems in the future. Solar energy is one of the options given the most significant potential for energy produced in Indonesia. This research aims to see the strategies that PLN can do to increase the use of Rooftop</em><em>&nbsp;PV</em><em>&nbsp;in Indonesia based on the results of the analysis that has been done. The approach to this research is a qualitative approach with the SWOT and FGD methods. Also, the data used are primary data from survey results on Rooftop </em><em>PV </em><em>users in Indonesia. The SWOT analysis results show that PLN is in quadrant I, which means it has an extreme market position. PT PLN has the potential to increase the use of Rooftop</em><em>&nbsp;PV</em><em>&nbsp;in Indonesia. Two strategic points can be carried out by PLN, namely, carrying out vertical integration and diversifying conglomerates. Also, the researcher has proposed several alternative strategies, namely the upstream (manufacturing) development plan, the downstream (consumer) development plan, and the internal development plan.</em></p> Fajar Nurrohman Haryadi, Arionmaro Asi Simaremare, Dzikri Firmansyah Hakam, Indra Ardhanayudha Aditya, Indri Haryani Copyright (c) 2022 Fajar Nurrohman Haryadi, Arionmaro Asi Simaremare, Dzikri Firmansyah Hakam, Indra Ardhanayudha Aditya, Indri Haryani http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/35679 Tue, 28 Jun 2022 00:00:00 +0000 Decision Making Under Uncertainty Market During Covid-19 https://e-journal.unair.ac.id/JDE/article/view/21243 <p>This article discussed decision-making models in the context of crisis and uncertainty during the COVID-19 pandemic. Time and information constraints, the effectiveness of government policies, and public expectations were used to build the research model. Data were collected by distributing a semi-open and closed survey questionnaire (Google Forms). The statistical result showed that the decisions taken during a crisis/pandemic were more determined by the time constraints and the information (significantly positive) than the government policies and the public expectations (negative is not significant). Related to the effectiveness of the health and economic policies taken by the government, it concluded the effective response; however the virus recurs, the public health response succeeds, but measures are insufficient to prevent recurrence so that physical distancing continues (regionally) for several months. Analysis of the survey respondents towards the government economic policy assessed that government policy was still partially effective intervention, policy responses partially offset economic damage, the banking crisis was avoided, and muted recovery levels. The economic impact of co-19 predicted a slow economic recovery, supported by respondents’ expectation of pessimism towards future economic conditions.</p> Rizka Jafar, Wayrohi Meilvidiri Copyright (c) 2022 Rizka Jafar, Wayrohi Meilvidiri http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/21243 Tue, 28 Jun 2022 00:00:00 +0000 Analysis of Islamic Rural Banks Efficiency in the East Region of Indonesia https://e-journal.unair.ac.id/JDE/article/view/33554 <p><em>Islamic Rural Bank (BPRS) has important roles for micro-enterprises in Indonesia. This study analyzes the performance of Islamic Rural Bank in Eastern Indonesia, where the Muslim population is minority. Using 14 BPRS spread across a number of islands in Eastern Indonesia with a five-year vulnerability (2016- 2020) and using the Data Analysis Envelopment (DEA) Variable Return to Scale (BCC) model, it can be concluded that only 4 Islamic Rural Banks have been able to be efficient for five consecutive years. -consistent even during a pandemic. Meanwhile, 2 Islamic Rural Banks have not been able to work efficiently for five years and the remaining 8 Islamic Rural Banks are still not consistently working efficiently. During the pandemic, 70% of Islamic Rural Banks that were efficient in the previous year were able to operate efficiently, while 30% of BPRS that were efficient in the year before the pandemic were unable to work efficiently. It is also known that all Islamic Rural Banks that were not efficient in the year before the pandemic remained inefficient during the pandemic.</em></p> Sri Cahyaning Umi Salama Copyright (c) 2022 Sri Cahyaning Umi Salama http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/33554 Tue, 28 Jun 2022 00:00:00 +0000 Evaluating the Role of Governance in Boosting Human Capital to Shrink Income Inequality in Developing Countries https://e-journal.unair.ac.id/JDE/article/view/34616 <p><em>Most of the developing countries in the world are facing a well-known challenging factor-like income inequality that affects the issue of balanced growth and welfare. The core goal of this paper is to investigate whether the Human Capital Index (HCI) joined with Good Governance (GG) variables have a significant impact on reducing income inequality in upper middle income (UMI) and lower middle income (LMI) countries or not. The first point is to investigate the relationship between HCI and income inequality and the second one is to find out the joint effect (HCI and GG) on income inequality (Gini Coefficient). The author divides all the countries based on income levels like UMI and LMI countries according to WB. For the UMI, HCI has no significant positive impact on reducing income inequality. However, if HCI works combined with good governance indicators like (HCI*RL), (HCI*RQ), and (HCI*GE), these interacted variables do not have significant power to reduce income inequality in UMI countries. Contrarily, for LMI countries, HCI helps to diminish income inequality significantly. When citizens achieve technical and educational qualifications, it helps them earn more money and shrinks income inequality significantly. Moreover, when HCI joints with good governing variables like PS, RQ, and RL that help to reduce income inequality significantly in LMI countries. There are some significant differences between UMI and LMI in foreign investment, job opportunities, foreign investment, and macroeconomic conditions that generate income-gap. This analysis finds that LMI countries grab influential effect in reducing income inequality in their economy compared to UMI countries.</em></p> Tanbir Hossain Copyright (c) 2022 Tanbir Hossain http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/34616 Tue, 28 Jun 2022 00:00:00 +0000 Convergence Analysis of Economic Growth in South Kalimantan https://e-journal.unair.ac.id/JDE/article/view/28632 <p><em>The objectives of this research are 1) testing and analyzing the level of sigma convergence in South Kalimantan; 2) testing and analyzing the convergent beta, including the absolute beta convergence and conditional beta convergence. This study uses static panel data covering 13 regencies/cities in South Kalimantan observed between 2010 and 2019. The data analysis uses the ordinary least square (OLS) regression model. The results showed a sigma convergence marked by a declining variation coefficient in each regency/city. The absolute beta and conditional beta also converged. Poor areas’ economic growth is faster than the prosperous regions so they catch up. There has to be close coordination between the central and local governments in formulating policies in handling government and private investment and improving workers’ productivity in the agricultural and mining sectors in South Kalimantan.</em></p> Yunita Sopiana, Djoko Mursinto, Lilik Sugiharti Copyright (c) 2022 Yunita Sopiana, Djoko Mursinto, Lilik Sugiharti http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/28632 Tue, 28 Jun 2022 00:00:00 +0000 Technical Efficiency Analysis of Container Terminals in Tanjung Perak, Surabaya, East Java https://e-journal.unair.ac.id/JDE/article/view/34928 <p><em>Container Terminals in Tanjung Perak Port is a trading center in the Eastern Indonesia Region (KTI) with a total throughput of 3.6 million TEUs in 2020. The utility/level of use of terminal facilities, consisting of the pier/berth occupancy ratio (BOR), has reached 60%. The field/yard occupancy ratio (YOR) is 65%, while the maximum utility is 70% (UNCTAD). It is necessary to explore the technical efficiency of each container terminal using the stochastic frontier analysis (SFA) because it can also capture the inefficiency effects. This study is built from the analysis of production factors in the period of 2009-2020, where the variables used are capital (k) using company asset data, labor variable (l) using data on the number of human resources, energy variable (e) using energy cost data (fuel oil/fuel, electricity, and water). The inefficiency variables are port draught (d) and loading and unloading productivity (p). The container terminal in Tanjung Perak has a relatively high technical efficiency value of 0.94. This shows that the terminal operation is quite optimum and is approaching the maximum point. The overall average elasticity is 2.01, which can be categorized as an increasing return to scale. The elasticity of assets has the most significant proportion, so it can be concluded that the port is capital intensive. Next, it’s found that the higher productivity 1% increase in loading and unloading productivity, the more inefficiency with a relatively minimal value of 0.11%. Finally, an increase of 1% in depth will increase efficiency by 10.89%.</em></p> Bambang Eko Afiatno, Karno Dwi Joyoutomo Copyright (c) 2022 karno dwi joyoutomo http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/34928 Tue, 28 Jun 2022 00:00:00 +0000 Official Development Assistance Effect on Infant Mortality and Human Development Index: Asia Evidence https://e-journal.unair.ac.id/JDE/article/view/33198 <p><em>Official Development Assistance (ODA) is a program formed by the Development Assistance Committee (DAC) which aims to improve country development and eradicate poverty in developing countries. Many Asian countries are ODA recipients. The purpose of this study is to determine the effect of ODA on infant mortality and the Human Development Index. The method used is panel data regression. Estimation results show that ODA has a significant effect on HDI, but not significantly on infant mortality.</em></p><p><em><br /></em></p><p><em><strong>JEL Classification Codes : F10; F35; I15</strong></em></p> Rizky Herdika, Rossanto Dwi Handoyo, Adrianus Kabubu Hudang, Tri Haryanto Copyright (c) 2022 Rizky Herdika, Rossanto Dwi Handoyo, Adrianus Kabubu Hudang, Tri Haryanto http://creativecommons.org/licenses/by/4.0 https://e-journal.unair.ac.id/JDE/article/view/33198 Tue, 28 Jun 2022 00:00:00 +0000