Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Vol. 10 No. 1 (2022): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah

The impact of pandemic COVID-19 on remittances and macroeconomy fundamental in ASEAN 6

Siti Komariyah (Faculty of Economics and Business, Universitas Jember, Jember, East Java, Indonesia)
Lilis Yuliati (Faculty of Economics and Business, Universitas Jember, Jember, East Java, Indonesia)
Moh Adenan (Faculty of Economics and Business, Universitas Jember, Jember, East Java, Indonesia)
Fajar Wahyu P (Faculty of Economics and Business, Universitas Jember, Jember, East Java, Indonesia)



Article Info

Publish Date
30 Apr 2022

Abstract

Globalization and liberalization increasingly provide opportunities for each country to increase regional and global cooperation. Socio-economic integration is also increasing, along with community cooperation in the regional and global scope. This study aims to determine the effect of remittances and other macroeconomic variables such as FDI, inflation, and export-import on GDP per capita in ASEAN 6 countries. The panel data analysis method used is regression using panel data sourced from the World Bank and ASEAN datasets in the form of annual data. The estimation results from FEM found that exports and remittances showed a significant positive effect on GDP per capita in ASEAN 6. In addition, imports showed a significant negative effect on GDP per capita in ASEAN 6. Meanwhile, several macroeconomic variables that were not significant were FDI, which showed a significant negative effect. Positive but not significant, inflation has a negative but not significant effect on GDP per capita in ASEAN 6. The emphasis on the positive effect of remittances on GDP per capita proves that the flow of remittances into developing countries will help increase income per capita. Vice versa, a crisis that hinders the increase in the enthusiasm of emigrants. The COVID-19 pandemic delays the emigrant's production activities and increases that will hinder the flow of remittances into the country of origin, such as in ASEAN 6 countries.

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Journal Info

Abbrev

JES

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Perspektif Pembiayaan dan Pembangunan Daerah (The Journal of Perspectives on Financing and Regional Development) is an open-access, peer-reviewed international forum for scientists involved in research to publish high quality and refereed papers. Jurnal Perspektif Pembiayaan focuses on ...