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JDE (Journal of Developing Economies)

JDE
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Published by Universitas Airlangga

ISSN : 25411012 EISSN : 25282018 DOI : -

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The Journal of Developing Economies (JDE) is a journal published by the Department of Economics, Faculty of Economics and Business, Airlangga University with the ISSN 2541-1012 (print version) and 2528-2018 (online version). This journal is published every 6 months, June and December, through a review process from both internal (Airlangga University) and external reviewers.

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Articles 99 Documents

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Economic Analysis of Heritage Tourism at Old Town Area Surabaya Muryani Muryani
JDE (Journal of Developing Economies) Vol. 4 No. 1 (2019)
Publisher : Universitas Airlangga

This study is an application of cultural heritage valuation using non-market methods. Contingent Valuation Method used to measure the amount of economic value by estimating willingness to pay from Surabaya residents. The economic value of the Old Town Area of Surabaya if there were improvementanddevelopment of heritage tourism is Rp. 1.471.764 billion.This value is greater than before improvement and development that is only Rp. 3.914.892.240. Multinomial logit regression was used to identify factors that affect the interest to visit and willingness to pay for the respondent. Results indicates that age, education, income, and knowledge significantly influence the interest to visit and willingness to pay. Therefore, it is necessary to encourage the development of heritage tourism, having regard to the determination of stakeholder and policy priorities.The method used in the determination of stakeholder and policy priorities is the Analytic Hierarchy Process.Overall, the use of three methods provide complete results so it can be a reference in the field of cultural heritage research and advice in the development of heritage tourism, especially in the old city area of Surabaya. Keywords: Economic Valuation, Multinomial Logistic Regression, Contingent Valuation Method, Analytical Hierarchy Process. JEL Classification: A130, D10

Impact of Government Policies on The Competitiveness of Soybean Farming System in Indonesia: Study in Bangsalsari District, East Java Province tri haryanto
JDE (Journal of Developing Economies) Vol. 4 No. 1 (2019)
Publisher : Universitas Airlangga

Soybean farming in Indonesia, as well as in other countries in the world, has an important role in providing food for the population, food ingredients for the food and beverage industry, and feed ingredients. Some policies have been implemented by the government to increase the profitability, efficiency and competitiveness of soybean farming. This study used the Policy Analysis Matrix (PAM) method to assess the competitiveness of soybean farming and evaluate the effectiveness of government policies in soybean farming. The results showed that soybean farming had a competitive advantage and comparative advantage. The results of the sensitivity analysis indicate that output price policy is an effective instrument to increase the profitability and competitiveness of soybean farming in Indonesia.Keywords: Government policy, Competitiveness, Sensitivity analysis, PolicyAnalysis MatrixJEL Classification: Q1, Q18

Non-Tariff Measures Impact on Indonesian Fishery Export Rossanto Dwi Handoyo
JDE (Journal of Developing Economies) Vol. 4 No. 1 (2019)
Publisher : Universitas Airlangga

This study aims to analyze the impact of Non tariff measures using sanitary and phytosanitary policy (SPS) and technical trade barriers (TBTs) on fishery exports of Indonesia and its trading partner countries such as China, South Korea, Vietnam, Canada, Russia and the European Union in period of 2007 to 2016. SPS and TBT are measured using inventory approach in the form of coverage ratio. In addition, this study uses a gravity model and panel data regression method. The results of this study indicate that the variables GDP of exporting country and GDP of importing country have a positive and significant effect on Indonesian fishery exports. Distance and SPS have a negative and significant effect on Indonesian fishery exports, while TBT has no effect on Indonesian fishery exports. Keywords: Export, SPS and TBT, Fishery Export, Coverage Ratio JEL Classification: F10, F130

Economic Valuation of Mangrove Forest in The East Coast of The City Of Surabaya, East Java Province, Indonesia Deni Kusumawardani
JDE (Journal of Developing Economies) Vol. 4 No. 1 (2019)
Publisher : Universitas Airlangga

The city of Surabaya has been voted as one of the pilot areas of mangrove forest conservation in ASEAN. Most of the mangrove forest area in the city of Surabaya spread across the East Coast (Pamurbaya). The purpose of this study is to estimate the total economic value of mangrove forests in the area as a source of information for planning and evaluation of conservation policy. The results of the valuation involving some valuation techiques, both market and non-market approaches, yield total economic value of about Rp 49.6 billion (US$ 3.8 million) per year, or 105.3 million (US$ 8,101.8) per ha per year. Almost all of these values is the use value, particularly direct use valule both extractive (timber and fisheries) and non extractive (outdoor recreation). Indirect use value which consists of abrasion barrier and carbon sinks contributed relatively small compared to the direct use value. Meanwhile, non-use value is the smallest contributors to the total economic value. This fact proves that the mangrove forest in Pamurbaya has economic benefits outweigh the ecological benefits. Keywords: Economic Valuation, Mangrove, Non-Market Approach, The Cityof SurabayaJEL Classification: A130, D78

The Influence of Remittances on Mutual Transactions in an Isolated Village SOULIXAY HONGSAKHONE
JDE (Journal of Developing Economies) Vol. 4 No. 1 (2019)
Publisher : Universitas Airlangga

In this paper, we investigate the influence of domestic remittances on mutual transactions through the trade of major products among households in an isolated village in a developing country. We use trade data of individual household obtaining from our own Household Survey 2015 and 2016 conducted in northern Lao PDR. By using propensity score matching method, the paper estimates the average treatment effect on the treated, and it finds that remittances have an increasingly significant impact on mutual transactions mainly through increasing in rice, non-timber forest products, and livestock trading among households with remittances. Moreover, this paper also finds that remittances had a more significant contribution to increased stock of goods rather than consumption in households with remittances. Suggesting that households with remittances, which are both consumers and traders, tend to accumulate their resources for future transactions, this is due to external market distance, food insecurity and network constraints. Keywords: Remittance, Developing Country, External Market Distance,Food Insecurity, Network ConstraintJEL Classification: F17, F24, E23

TARIFF ELIMINATION: IMPACTS AND TREATMENTS FOR RESOLVING NIGERIA-EPAs STALEMATE Godwin Odo Onogwu; Peter Madu Bzugu; Emmanuel C. Ani
JDE (Journal of Developing Economies) Vol. 4 No. 2 (2019)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v4i2.17946

In this manuscript, attempts were made to assess the impacts on Nigeria of full and instant tariff elimination from agricultural imports. A schedule of annual percentage reductions till full elimination as against an instant total or arbitrary elimination across all imports from the EU, as well asthe expected annual provisions via aids for envisaged trade to install infrastructural capacity aimed at forestalling fiscal imbalance, leading to stabilization for Nigeria, advocated. The study evaluates the likely share of Nigeria’s imports from the European Union (EU), Economic Community of West African States(ECOWAS), and the rest of the world (ROW) in major agricultural product sections trade. The World Integrated Trade Solutions (WITs) platform was used to illicit a likely Economic Partnership Agreements (EPAs) scenario import data through a tariff eliminated query set up. The major impacts estimated include the resultant consumption impact, revenue impact, welfare impact, trade creation and diversion impacts, welfare impact of trade creation with consumption impact, and Welfare impacts of trade diversion with consumption impacts, in addition to their implications for scheduled tariff eliminations. Summary results were presented at product section levels as percentage of the impacts to contribution of agricultural sector in Nigeria’s GDP. Based on the estimated impacts and terms of trade deal, it is recommended that Nigeria should follow a schedule of percentage tariff reduction across product sections relative to the current most favored nations’ rather than arbitrary measures as a major policy of liberalizing trade. An annual percent tariff reduction rates over the 25 years, of 0.38%; 1.35%; 0.62%; 0.72%; and 0.2, for product sections 01-05, respectively, is recommended. In addition, it is also recommended that corresponding tariff losses in revenue due to scheduled reductions in tariff should be provided annually via aid for trade, for improvement in infrastructure, production and exportation that will sustain and improve intra, inter and extra regional trade in a growth and globalization pursuit aided by the EU. Keywords: International Agricultural Product Imports; Aid for Trade; EPAs; Impacts; Percentage Tariff Reduction Schedule.JEL Classification: F; F1; F6

SME Competitiveness Cluster Analysis in East Java Muslih Muslih; Angga Erlando
JDE (Journal of Developing Economies) Vol. 4 No. 2 (2019)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v4i2.13298

This study aims to analyse the competitiveness of the small and medium industries in East Java in the face of global economic openness. The method used is a cluster to find out the factors that influence the competitiveness of Small and Medium Industries (SME) by grouping them into groups based on similarity of characters. The use of the cluster method is carried out hierarchically, or processed through a series of successively fusing objects into groups. Based on the results of identification and analysis, then the conclusion, there are three cluster findings based on competitiveness categories. Cluster I is SME with low competitiveness, Cluster II is SME with high competitiveness, and Cluster III is SME with medium competitiveness. SME that have high competitiveness are SME that can increase efficiency in 2 fields, namely Production and Marketing. While SME that have medium competitiveness are SME that are superior in technology, so they can be classified in the creative industry. Keywords: Competitiveness, Cluster, SME, East Jawa JEL Classification: O0; O1; O2; L6

Impact of Trade Creation and Trade Diversion in Asean-Japan Comprehensive Economic Partnership (AJCEP) Gayatri Talita Aprilia; Rossanto Dwi Handoyo
JDE (Journal of Developing Economies) Vol. 4 No. 2 (2019)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v4i2.12688

This study uses a gravity model to analyze the impact of the ASEAN-JAPAN COMPREHENSIVE ECONOMIC PARTNERSHIP (AJCEP) agreement on total Indonesian exports and to analyze the occurrence of trade creation or trade diversion. The data used in this study is panel data, the time used in this study from 2000 to 2015 consisting of 16 countries. This result finds the coefficient value of the FTA dummy of 0.207. This positive relationship indicates that there is a trade creation in AJCEP member countries and non AJCEP members. So it indicates that the welfare of member states and non AJCEP members. Total GDP, real exchange rate is positively correlated and GDP per capita difference and distance are negatively related to total Indonesian exports. Keywords: ASEAN-Japan Comprehensive Economic Partnership, Gravity Model,Trade Creation and Trade Diversion.JEL Classification: G230, G400, O330

Analysis of Indonesian Trade: Case Study After The AFTA Agreement Ronald Pratama Poetra
JDE (Journal of Developing Economies) Vol. 4 No. 2 (2019)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v4i2.13045

The ASEAN Free Trade Area (AFTA) began in 1993. The hope of this agreement was that intra-ASEAN trade to grow rapidly turned out to be slow. Based on data from the ASEAN Secretariat in 2016, intra-ASEAN trade experienced a slow journey in the range of 20-24 percent over the past few years. This study empirically analyzed the influence of AFTA on Indonesia's trade structure towards ASEAN using TSI, GL / IIT, and CTB index. In the period of 2012-2017 Indonesia's trade balance against ASEAN suffered a loss. Despite the loss, there was a decrease in trade balance losses from 2015-2017 (after AFTA). To analyze trade there are 10 commodity classifications determined by SITC revision 3. Based on the results of the TSI analysis, there is a specialization of 6 commodities trading which have high export power. The CTB analysis is only commodities of Chemicals and related products, n.e.s, which contribute positively to Indonesian trade. For IIT analysis there are 4 commodities where the average IIT index increases after the AFTA agreement. Keywords: ASEAN, Trade, AFTA, IIT, TSI, CTB JEL Classification: F180, F140, F130

East Java Online Transactions: Demand Side Analysis Riska Dwi Astuti; Nadia Fazira
JDE (Journal of Developing Economies) Vol. 4 No. 2 (2019)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v4i2.13048

Despite the study of rapid growth of online-based transactions in East Java over the past few years, little is focused on the demand side in which consumer characteristics are crucial in this event. This study aims to analyze the relationship of consumer characteristics on the expansion of online-based transactions in East Java. Panel data consisting of 38 districts/cities in East Java province in the period 2015-2017 is analyzed using the random effects method. The results show that the increase of tertiary education participation has a significant positive effect on digital transactions both for goods/service transaction and the use of banking facilities. In addition, mobile phones ownership also has a significant positive role in improving online transactions for the sale and purchase of goods services through the internet. Share of non-food expenditure has a positive effect on online transactions, especially for financial transactions. On the other hand, the productive age population has a negative significant effect on online buying and selling activities. Health variable insignificantly affects online transactions since the activities of transactions through the internet can be done both in healthy and unhealthy conditions. Likewise with computer ownership that does not significantly affect online transactions because people tend to use mobile phones as the transaction device. Level of expenditure does not affect online transactions because online transactions have become the lifestyle in this digital era. Thus, the internet-based transaction is no longer influenced by economic conditions. Keywords: Transactions, Online, Random Effects, Consumers. JEL: G230, G400, O330

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