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Economic Journal of Emerging Markets
ISSN : 20863128     EISSN : 2502180x     DOI : -
Core Subject : Economy,
The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal is fully open access for scholarly readers.
Arjuna Subject : -
Articles 557 Documents
Examining the impact of bank’s risks to Islamic banks’ profitability Priyonggo Suseno; Omar Bamahriz
Economic Journal of Emerging Markets Volume 9 Issue 2, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss2.art2

Abstract

This paper analyzes the impact of banks' risk to the profitability of Islamic banks and to identify what risks play the non-trivial role. To this objective, 75 Islamic banks in 24 countries in 2015 have been studied. A series of bank risks, industry-specific and macroeconomic indicators are combined to explain the profitability of Islamic banking as measured by Return on Average Assets (ROAA), Return on Average Equity (ROAE), and Value Added (VA). The bank risks comprise credit risk, insolvency risk, liquidity risk, and operational risk. Having used robust linear regressions, the results indicate that all four types of risk influence bank's profitability. Operational risk is the risk that plays the most important role in influencing banks' profitability, whether measured by ROAA, ROAE or profit before taxes over the total asset (PBTTA). On the other hand, credit risk, liquidity, and insolvency do not conclusively increase or decrease Islamic bank profitability. Macroeconomic conditions, measured by inflation, actually has a positive impact on the profitability of Islamic banks. This indicates that operational risks and macroeconomic stability should be given primary attention in increasing bank's profitability.
The determinant of equity financing in sharia banking and sharia business units Jaenal Effendi
Economic Journal of Emerging Markets Volume 10 Issue 1, 2018
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol10.iss1.art12

Abstract

Equity financing plays an important role in mobilizing financing in the real sector. The core business of sharia banking is based on the real sector, but the financing portion in sharia banking is still dominated by debt financing. This study aims to analyze the factors that affect equity financing in General Sharia Bank (BUS) and Sharia Business Unit (SBU) in Indonesia. This study uses Error Correction Model. The results show that in the long-term model of Third Party Fund (DPK), Finance to Deposit Ratio (FDR), Non-Performing Financing (NPF), Inflation and Interest Rates Credit of Conventional Bank (SBK) has a significant positive effect on equity financing. BOPO variables (Operating Cost Ratio to the Operating Income) and Return on Assets (ROA) have a positive but not significant effect on equity financing. The DPK and FDR variables have a positive and significant effect on equity financing on the short-term model.
The spillover effects of foreign direct investment on labor productivity Riesta Karentina
Economic Journal of Emerging Markets Volume 11 Issue 1, 2019
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol11.iss1.art4

Abstract

This study examines the effect of FDI spillovers, short-term and long-term effects of FDI spillovers on domestic firms’ productivity. It also explores the impact of FDI spillovers on domestic firms’ productivity in different groups of industries based on their factor intensity. Micro-level panel data covering about 20,000 medium and large manufacturing establishments in each year over the period 2010 and 2014 was employed. Findings/Originality: This study suggests that, within the same industry, horizontal spillovers are associated with domestic firms’ productivity: this relationship is negative in the short-term but positive in the long-term. It also demonstrates negative backward spillover effects on domestic firms’ productivity across industries. In addition, this study points out that FDI spillovers affect capital-intensive domestic firms’ productivity.
Financial independence of regencies and cities in Central Java Fafurida Fafurida; Erliz Nindi Pratiwi
Economic Journal of Emerging Markets Volume 9 Issue 2, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss2.art9

Abstract

This research aims to identify and to map the financial independence of the local government. This research uses ratio analysis to identify the financial independent analysis and typology to map the local government financial level. The research indicates that the financial independence tends to increase in all regions. Based on the financial independent analysis, Semarang and Tegal have lower financial dependence with the consultative relationship pattern rather than 33 other regions that have higher financial dependent level with the instructive relationship pattern. The mapping results of financial independence are in the following: ten cities or regencies have self-financial dependency below the average toward the central government, seven regencies have self-sufficient above the average toward the central government, and eighteen regencies have self-sufficient below the average toward the central government.
The role of tourism toward economic growth in the local economy Suhel Suhel; Abdul Bashir
Economic Journal of Emerging Markets Volume 10 Issue 1, 2018
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol10.iss1.art4

Abstract

This study analyzes the relationship between the number of tourists, tourism investment, government tourism spending, and economic growth in South Sumatra. It uses Granger causality model and simultaneous equation model to estimate the empirical model. The findings show that the number of tourists, the added value of the tourism sector, and the tourism spending of the tourism sector affect economic growth, while tourism investment does not affect the economic growth. In the second model, this study found that economic growth, tourism added value, tourism, and government tourism spending affect the number of tourists. This study implies that government policy has an important role in encouraging the tourism sector development which is indicated the contribution this sector on economic growth.
Spin-off, market structure, and deposit funds: case in the Indonesian Islamic banking industry Mohammad Nur Rianto Al Arif
Economic Journal of Emerging Markets Volume 10 Issue 2, 2018
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol10.iss2.art7

Abstract

The regulator had imposed some Islamic business units to do the spin-off after the enactment of the Islamic banking act (The Act No. 21 of 2008). The aim of this research is going to examine the relationship between spin-off, market structure, and deposit funds. Regression with panel data was using as a tools of analysis. The result shows that there is a difference in deposit funds between the spin-off banks and non-spin-off banks. Besides that, the result also indicates that there is a relationship between spin-off, market structure, and deposit funds in the Indonesian Islamic banking industry. The result implies that the regulator should a policy to accelerate the Indonesian Islamic banking industry.
A feasibility study of establishing fiscal council in Indonesia Haryo Kuncoro
Economic Journal of Emerging Markets Volume 10 Issue 2, 2018
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol10.iss2.art3

Abstract

In this paper we address the quantitative measurement of credibility in fiscal policy in the case of Indonesia over the period 2001-2016. This preliminary paper focuses on the deviations of the actual budget balances from the projections about these balances in the preceding years. The objective is to extract from these data insights into the credibility of the government fiscal policies. We found that fiscal policy as conducted by government is not perceived as credible. The targets set forward by government are often not met and usually the divergence is on the negative side. Revenue and spending are overestimated, leading to a deficit bias and growing indebtedness of government. Those results suggest feasibility to establish the fiscal council with independent powers to conduct the credible fiscal policy in order to maintain fiscal sustainability in the long-term.
The effect of economic sanctions on the volume of trade in the agriculture sector of Iran and business partners in the EU Seyed Yaghoub Zeraatkish; Zahra Farahmand
Economic Journal of Emerging Markets Volume 11 Issue 1, 2019
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol11.iss1.art10

Abstract

Iranian economy was under pressured during the period of international trade sanctions. This paper investigates the effect of the economic sanctions on the bilateral agriculture trade of Iran with ten main trading partners in European Union between 2001 to 2015. A modified gravity model is used as an empirical international trading model and panel data are used for investigating the effect of sanctions. Findings/Originality: In the absence of sanction, the effect of all independent variables, except for population, is as expected by the theory. Under the sanction the effect of GDP and population is lower than those of without sanction. The effect of foreign exchange fluctuation gets more intense during the sanction due to instability of financial sector. Distance, however, is not a significant variable to explain the bilateral trade both in the absence and under the sanction. The weak sanction period lowered the bilateral trade by 7.5 percent lower, but unexpectedly it was 12 percent higher during the strong sanction period.
Determinants of income inequality Akhsyim Afandi; Vebryna Permatasari Rantung; Hazem Marashdeh
Economic Journal of Emerging Markets Volume 9 Issue 2, 2017
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol9.iss2.art5

Abstract

This study examines whether changing economic structure, social conditions, and financialization are responsible for increased income inequality in Indonesia. By employing panel data of 32 provinces in Indonesia that spans from 2007 to 2013, it finds that structural change affects income inequality, increased share of finance reduces inequality, which is against the financialization hypothesis, and social conditions have expected effects on income inequality. While an increased share of both agriculture and service sectors tends to reduce inequality, an increased share of manufacture sector has no effect on inequality. This study finds that falling poverty increases inequality, implying that policy to reduce poverty might not be neutral for inequality and instead cannot prevent it from increasing. Since the higher the college participation rate the higher income inequality tends to be, it does not automatically imply that in order to reduce inequality we need to reduce the number of people who go to college. It might be the case that the college participation rate has not reached a turning point, below which its increase increases inequality, but beyond which its increases reduces inequality.
Trade openness and female-male earnings differentials: Evidence from Indonesia Maryam Jamielaa
Economic Journal of Emerging Markets Volume 10 Issue 1, 2018
Publisher : Universitas Islam Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20885/ejem.vol10.iss1.art9

Abstract

In the past two decades, Indonesia has experienced an increase in total trade and FDI. In the period 2008-2014, there was an increase of FDI volume, which was followed by a widening trend in the female and male earnings gap. This study investigates the impact of trade openness on female-male earnings differentials and how the impact differs across the wage distribution. This thesis used data employment from the National Labor Survey (SAKERNAS) published by Statistics Indonesia and FDI data released by the Investment Coordinating Board (BKPM). Furthermore, after applying the OLS and the Quantile Regression estimation method, it appears that gender wage gap is narrower in low quantile wage distributions than in high quantile distributions. Also, another important finding emerges from the results of provincial income groups, which shows that gender wage differentials are narrower in high-income and middle provinces than in low-income provinces.

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