Imam Asngari
Department Of Development Economics, Faculty Of Economics, Universitas Sriwijaya, Indonesia

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Journal : IJBE (Integrated Journal of Business and Economics)

Financial Development and Economic Growth; Evidence from Asia-Pacific Countries Taufiq Marwa; Muizzuddin Muizzuddin; Imam Asngari
Integrated Journal of Business and Economics (IJBE) Vol 6, No 1 (2022): Integrated Journal of Business and Economics
Publisher : Fakultas Ekonomi, Universitas Bangka Belitung

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (233.207 KB) | DOI: 10.33019/ijbe.v6i1.459

Abstract

This research examines the impact of financial development on economic growth. Using a sample of 152 observations from 13 countries in the Asia Pacific for the period 2004 and 2020, we find that financial development positively impacts economic growth, supporting the finance-growth hypothesis, especially in the development of the capital market sector. This research provides policy implications that positive relationship between financial development and growth suggests that policymakers should take the necessary moves towards the simultaneous development of both the banking sector and the stock market to stimulate growth.
Testing of the Structure-Conduct-Performance Hypothesis for Industrial Banking Profitability: Evidence from Indonesia Imam Asngari
Integrated Journal of Business and Economics (IJBE) Vol 8, No 1 (2024): Integrated Journal of Business and Economics
Publisher : Fakultas Ekonomi, Universitas Bangka Belitung

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33019/ijbe.v8i1.771

Abstract

This study aims to test the validity of the Structure Conduct and Performance (SCP) hypothesis on banking profitability in Indonesia. This research data comes from banking financial statements from the Financial Services Authority (OJK) and Bank Indonesia. The analysis method uses the panel data regression method. The banking industry studied includes 110 conventional commercial banks and Islamic banks from 2010-2019. This research has found that the profitability performance of the banking industry is statistically significantly influenced by concentration, market share, cost efficiency to generate revenue, bank size, net interest income margin, Bank Indonesia's benchmark interest rate, and economic growth. Meanwhile, inflation is insignificant. The contribution of the research was to develop of Structure Conduct Performance (SCP) theory. The SCP is applicable to Indonesian banking and it is the Hybrid of the Efficient-Structure Traditional Hypothesis which states that the effects of efficiency and market concentration have improved banking profitability performance. The combination of structure, market share, and efficiency supports the hypotheses on Efficiency and SCP Traditional. High banking profitability due to the combination of efficiency and market concentration formed by increased assets and mergers. Therefore, OJK and Bank Indonesia in encouraging asset improvement through future mergers can improve efficiency, the competitiveness of the banking industry, the and economic stability of Indonesia.