Jurnal Ekonomi dan Bisnis Airlangga

Front Matter Volume 35, No. 1, December-May 2025

Sulistya Rusgianto — Wed, 28 May 2025 00:00:00 +0700

NEXUS BETWEEN THRIFTING AND GDP GROWTH IN INDONESIA’S TEXTILE AND WEARING APPAREL MANUFACTURING: ARDL AND SENTIMENT ANALYSIS APPROACH

Wed, 28 May 2025 00:00:00 +0700

Introduction: The rise of used clothing imports has sparked concerns about its economic impact, particularly on Indonesia’s textile and apparel industry.

Methods: This study employs a mixed-methods approach, combining quantitative (ARDL model) and qualitative (sentiment analysis) methods. It analyzes GDP, Google Trend Index (GTI), and used clothing import data from 2018–2023 to assess the economic impact of thrifting.

Results: This study analyzes the impact of thrifting on the GDP of Indonesia's textile and apparel industry subsector. The findings indicate that thrifting has a significant negative effect on the sector's GDP, while sentiment analysis reveals that 81.90 percent of public sentiment on Twitter expresses positive views toward thrifting.

Conclusion and suggestion: This study concludes that thrifting harms the GDP of Indonesia's textile and apparel industry subsector. This finding is reinforced by the high public interest in thrifting, as reflected in the predominantly positive sentiment on Twitter. In response, policymakers and industry stakeholders should strengthen the enforcement of existing regulations and focus on enhancing the competitiveness of local products.

FINANCIAL FLOWS AND ENVIRONMENTAL SUSTAINABILITY IN NIGERIA: ENVIRONMENTAL KUZNETS HYPOTHESIS

Mayowa Ebenezer Ariyibi, Bamidele Muzliu Ilo, Ganiyu Olumuyiwa Yinusa — Wed, 28 May 2025 00:00:00 +0700

Introduction: This study examines the effect of financial flows (external and internal) on environmental sustainability in Nigeria, testing the environmental Kuznets hypothesis.

Methods: The study employed secondary data sourced from the Central Bank Statistical Bulletin and World Development indicator. The period of the inquiry was from 1991 to 2022, both years inclusive. The study employed the auto-regressive distributed lag to determine the short and long-run relationship between the outcome variables and explanatory variables.

Results: The findings revealed that external debt, net export and government expenditure on education has a positive significant effect on CO2 emission. Foreign direct investment, foreign aid and tax revenue have a negative significant effect on CO2 emission. It is therefore concluded that external debt and net export channeled through capital project and improvement in receipt from export would increase the units in per capital income of the populace, which in the short-run would increase the level of CO2 emissions in Nigeria.

Conclusion and suggestion: It recommended that government should develop policies and incentives that would attract foreign direct investment in green industries and technologies, ensure foreign companies adhere to environmental regulations and standards in the recipient country.

CAPITAL FORMATION AND HEALTH OUTCOMES IN MIDDLE-INCOME COUNTRIES

Wed, 28 May 2025 00:00:00 +0700

Introduction: Understanding how much a country’s health system spends on infrastructure, machinery, and types of equipment is crucial for policymaking and analysis. Although health systems continue to be labor-intensive, capital has been increasingly important in producing health services in recent decades. Considering the growing importance of diagnostic and therapeutic types of equipment, as well as the recent rise of information, computers, and technology in healthcare services being capital intensive, hence, it is imperative to determine the impacts of capital formation on health outcomes in middle-income countries.

Methods: The study used the World Bank rating, from 2000 to 2023. The system generalized method of moments (SGMM) was adopted to account for endogeneity. The World Development Indicators (WDI), and World Governance Indicators (WGI) data were used. The model's validity was assessed using the AR (1) and the AR (2) tests, while the instrumental variables were validated using Sargan and Hansen tests. Inferences were drawn using a 5% threshold of significance.

Results: Results showed that capital formation confirmed a crowd-out relationship between morbidity rates and crude death, while life expectancy has a positive relationship with capital formation in middle-income countries. Life expectancy has a positive relationship and is statistically significant at a 5% level.

Conclusion and suggestion: Therefore, the study recommended that middle-income countries must generate savings and investments through individual savings or government policy to improve their healthcare system since countries with a high level of household savings can accumulate funds and produce capital goods faster.

TECHNOLOGICAL FACTORS AND SOCIAL MEDIA ADOPTION AMONG MICRO-ENTERPRISES: THE MODERATING ROLE OF PERSONAL INNOVATIVENESS

Hendrick Hernando, Sobia Shahzad, Niza Nurmalasari — Wed, 28 May 2025 00:00:00 +0700

Introduction: Adopting social media has many benefits for micro-enterprises, particularly in terms of greater marketing exposure. Thus, identification of social media adoption and the associated determinants is essential. This study sets a moderating variable to fill the identified gap in previous studies. Besides, the influence of technological factors as social media adoption determinants is evaluated.

Methods: Employing a purposive sampling procedure, data were obtained via questionnaires distributed to owners or managers of micro-enterprises in Madiun. A total of 120 valid responses were analyzed using partial least squares structural equation modeling (PLS-SEM).

Results: The results of this study showed that cost-effectiveness and perceived compatibility positively affect the adoption of social media apps, while relative advantage has no significant influence. Our findings also found that personal innovativeness significantly moderates the relationship between relative advantage and social media adoption.

Conclusion and suggestion: As a novel contribution, this study has confirmed the moderating role of personal innovativeness, while some advice for stakeholders, including government and platform developers, is provided.

EFFECT OF OPERATIONAL RISK ON THE PERFORMANCE OF LISTED INSURANCE COMPANIES IN NIGERIA

Kehinde Isiaq Olaiya, Richard Ore-Oluwa Akingunola, Abdul-Azeez Adeniyi Alao — Wed, 28 May 2025 00:00:00 +0700

Introduction: This study examines the determinants of profitability, measured by Adjusted Risk-Adjusted Return on Capital (Adjusted RAROC), in the context of listed insurance companies in Nigeria.

Methods: Using a panel data regression analysis, we employ four models: pooled regression, fixed effects, random effects, and Difference Generalized Method of Moments (D-GMM), to explore the impact of operational risk factors, including the claims ratio, expense ratio, leverage, and firm size, on Adjusted RAROC.

Results: The results indicate that leverage and firm size play significant roles in profitability, with higher leverage associated with increased profitability in some models. Conversely, the claims ratio shows a negative relationship with profitability, highlighting the importance of effective risk management. The expense ratio also exhibits a negative impact on profitability, emphasizing the need for efficient cost control. The D-GMM model, which addresses endogeneity issues, reveals that past performance and firm size are crucial predictors of future profitability.

Conclusion and suggestion: Overall, the findings suggest that operational efficiency, risk management, and strategic financial decisions are essential for improving profitability in the Nigerian insurance sector.

ANALYSIS OF ECONOMIC CONJUNCTURE ON THE COLLECTION AND DISTRIBUTION OF ZAKAT, INFAQ, AND SADAQAH (ZIS) AND PROVINCIAL ECONOMIC GROWTH IN INDONESIA

Rifka Putri Ramadhanty, Muhamad Nafik Hadi Ryandono — Wed, 28 May 2025 00:00:00 +0700

Introduction: This study analyzes the influence of macroeconomic factors—specifically inflation and unemployment—on the collection and distribution of zakat, as well as their impact on provincial economic growth in Indonesia.

Methods: Data were collected from 33 provinces over the period 2012–2023. The study utilizes the path analysis model to process the collected data, employing SmartPLS 4.0 software for analytical procedures.

Results: The study finds that inflation and unemployment negatively affect zakat collection and economic growth. Conversely, zakat collection has a positive influence on its distribution, which ultimately supports economic growth.

Conclusion and suggestion: These findings underscore the potential of zakat as a macroeconomic instrument for sustainable development. The results provide important implications for zakat management and Islamic economic policy in Indonesia.

EXAMINING THE ROLE OF MILLET ENTREPRENEURIAL PRODUCTION IN IMPROVING FOOD SECURITY AND NUTRITION IN CHIVI RURAL DISTRICT

Wilson Mabhanda, Khulekani Sibanda — Wed, 28 May 2025 00:00:00 +0700

Introduction: Existing research extensively documents food shortages, hunger, and poverty in Africa and Asia. Climate change is a major driver of worsening food insecurity, contributing to these problems and negatively impacting a growing global population's health, nutrition, and economic well-being. Smallholder farmers face significant challenges in improving food security and nutrition through millet cultivation. This study examined the role of millet entrepreneurship production among 15 farmers, enhancing food security and nutrition in rural households within Zimbabwe’s Chivi District.

Methods: Data were collected through in-depth face-to-face interviews and focus groups, using a descriptive qualitative case study design. To capture the diverse landscape of smallholder farmers in an informal context, both purposive and snowball sampling methods were utilized to select participants for the study.

Results: According to the findings, millet entrepreneurship in the Chivi district has improved community households' food security and nutrition, demonstrating that small grain agriculture thrives in climatically challenging regions and raises living standards. Among the favorable benefits, rural farmers produce better food nutrition, have higher incomes, improved living conditions, and increased educational opportunities for their children.

Conclusion and suggestion: The study concludes that, despite difficulties with labor-intensive farming and a lack of farming inputs, millet entrepreneurial production generally improved livelihoods. The study suggests that to optimize the results for livelihood, the Zimbabwean government's food security policy agenda should support smallholder rural farmers in their efforts to increase entrepreneurial millet production. Ultimately, smallholder farmers in dry regions are encouraged to adopt small grain cultivation due to its high yield potential despite climate change challenges.

THE PREDICTION OF FINANCIAL DISTRESS IN PROPERTY COMPANIES IN SOUTHEAST ASIAN: INDONESIA, SINGAPORE, AND MALAYSIA

Muhammad Abdul Ghoni, Asep Maksum, Abdul Qadir Jaelani, Noor’ain Mohamad Yunus — Wed, 28 May 2025 00:00:00 +0700

Introduction: This study aims to assess and evaluate the financial distress state of a sample including 204 data points from 35 enterprises in Southeast Asia, specifically Indonesia, Malaysia, and Singapore.

Methods: This study analyzes the effects of Covid-19 on these enterprises, specifically concentrating on the likelihood of financial hardship as assessed by Edward Altman's Z-score model.

Results: Evidence indicates that property businesses listed on the Indonesia, Malaysia, and Singapore Stock Exchanges had greater financial difficulties during the Covid-19 period compared to the post-Covid period, aligning with observations at the ASEA Landmark level. The projected likelihood of default for publicly traded enterprises rose significantly during the Covid pandemic.

Conclusion and suggestion: The data reveal that the Z-score's efficacy in predicting bankruptcy markedly declined during the financial crisis. The data indicate that Covid-19 is causing financial pain to enterprises in Southeast Asia.

ENVIRONMENTAL, SOCIAL, AND GOVERNANCE (ESG) PERFORMANCE AND CORPORATE VALUE: UNPACKING THE MODERATING EFFECT OF COMPANY SIZE

Dendi Mulyana, Aristanti Widyaningsih, Rozmita Dewi Yuniarti Rozali — Wed, 28 May 2025 00:00:00 +0700

Introduction: This study endeavours to analyse the effect of environmental, social, and governance (ESG) performance on corporate value and determines whether company size can affect this outcome.

Methods: This quantitative research was conducted across five Southeast Asian (ASEAN) countries over four periods, from 2020 to 2023. The sample comprises 361 companies, selected using a purposive sampling technique, resulting in a total of 1,444 observations. The study employs moderated regression analysis (MRA) of panel data.

Results: The findings reveal that ESG performance unfavourably affects corporate value. However, company size mitigates this unfavourable effect, as evidenced by its substantial favourable moderating role. Further analysis at the country level shows consistent results in Indonesia, Malaysia, and Thailand. In contrast, ESG performance does not substantially affect corporate value in Singapore and the Philippines, nor does company size have a notable moderating effect.

Conclusion and suggestion: This study underscores the significance of integrating ESG policies into corporate strategies, especially for larger corporations. Smaller firms may need to focus on cost-effective initiatives or seek support to scale their ESG efforts. For policymakers, the study underscores the necessity of enhancing support through transparency, fiscal incentives, and regulations to promote ESG awareness and implementation, particularly in countries where the effect of ESG is limited.

THE ENIAPEL BOTTOM LINE MODEL AND NATURAL TOURISM MARKETING: A MIXED METHODS STUDY OF GOSARI VILLAGE

Ida Bagus Cempena, Tri Ratnawati, Arga Christian Sitohang — Wed, 28 May 2025 00:00:00 +0700

Introduction: This study aims to analyze the relationship between economy, fishermen, inclusion, nature, empowerment, ecology, and local variables in the context of natural tourism development in Gosari Village, Ujungpangkah District, Gresik Regency, part of the minapolitan zone. Understanding these variables’ effects is essential for improving the sustainability and operational efficiency of Gosari Village as a tourism destination.

Methods: A quantitative approach was employed through questionnaires administered to 106 respondents from various stakeholders, including Village-Owned Enterprises (BUMDes), POKDARWIS, MSMEs, and government entities. The collected data were processed using PLS 4.0. Additionally, a phenomenological study using in-depth interviews was conducted to capture the social experiences of fishing communities in Gosari Village. This dual approach provided a comprehensive understanding of the area’s tourism development dynamics.

Results: The results show that fishermen significantly influence inclusion, ecology, and economy, but not empowerment. Nature is found to have a significant effect on empowerment and ecology, but not on inclusion and economy. Local variables have a significant influence on empowerment, ecology, and economy, but not on inclusion.

Conclusion and suggestion: This study highlights the significant roles of fishermen, nature, and local variables in the development of natural tourism in Gosari Village, with varying impacts on inclusion, ecology, empowerment, and the economy. To enhance sustainability and operational efficiency, it is recommended to focus on digital marketing, human resource development, diversification of funding sources, the application of technology, and local empowerment policies. Additionally, the ENIAPEL Bottom Line Model is proposed as a strategy to maintain a balance between environmental, social, and economic aspects for sustainable tourism growth in the village.

SUSTAINABLE STRATEGIES IN ORGANIC WASTE MANAGEMENT: A SYSTEMATIC LITERATURE REVIEW STUDY

Husnia Sholihatin Amri, Febriana Wurjaningrum — Wed, 28 May 2025 00:00:00 +0700

Introduction: Particularly in Indonesia, waste management—especially organic waste—remains a major worldwide concern. A substantial contributor to greenhouse gas emissions (7.29% yearly) and economic losses of IDR 213–551 trillion, food waste will make up 39.78% of all garbage in 2023.

Methods: This study employs a systematic literature review to analyze organic waste management practices and their environmental implications, utilizing secondary data from national and global sources.

Results: The findings show that Indonesia has problems with such low public knowledge, reliance on subpar dumps, and limited technology. Locally, creative methods such as using Black Soldier Fly larvae to convert organic waste show promise. Around the world, modern technologies like Malaysian and Thai anaerobic digestion and programs like the European Green Deal show greater efficiency. Successful programs frequently incorporate government incentives, trash segregation regulations, and public education.

Conclusion and suggestion: SAccording to the study's findings, managing organic waste sustainably can lower greenhouse gas emissions and help achieve several UN SDGs, such as those related to health, clean water, and climate change. Promoting trash separation at the source, using composting methods, implementing contemporary technologies, and encouraging cooperation between public, corporate, and community sectors are some of the main proposals. Long-term solutions in Indonesia and elsewhere depend on addressing shortages in funding, infrastructure, and public awareness.

DOES ISLAMIC FINANCE DRIVE ECONOMIC GROWTH IN INDONESIA? AN ANALYSIS USING VECTOR ERROR CORRECTION MODEL

Eko Kurniawan, Lina Nugraha Rani, Tanza Dona Pertiwi — Wed, 28 May 2025 00:00:00 +0700

Introduction: Indonesia, as the second-largest Muslim-majority country in the world, has significant potential for developing the Islamic finance sector. On the other hand, the financial sector, including Islamic finance, plays a crucial role in a country's economic growth.

Methods: This study utilizes quarterly time-series data from 2011 to 2023, with economic growth (GDP) as the dependent variable. The independent variables include Islamic banking assets, outstanding sukuk value, and total zakat distribution. The analysis is conducted using the vector error correction model (VECM), beginning with stationarity testing, optimal lag selection, cointegration testing, model estimation, and variance decomposition analysis.

Results: The analysis results indicate that, in the short term, Islamic finance (Islamic banking, sukuk, and zakat) does not have a significant impact on Indonesia's economic growth. However, in the long term, these three variables have a positive and significant effect on economic growth.

Conclusion and suggestion: Islamic finance has been proven to play an essential role in driving Indonesia's long-term economic growth. Islamic banking contributes through real sector financing; sukuk supports infrastructure development, and zakat enhances societal welfare and aggregate consumption. The government needs to strengthen Islamic financial infrastructure, improve financial literacy, and enhance the inclusivity of Islamic finance in Indonesia.