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JDE (Journal of Developing Economies)
Published by Universitas Airlangga
ISSN : 25411012     EISSN : 25282018     DOI : -
Core Subject :
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.
Arjuna Subject : -
Articles 99 Documents
The Effect of Credit Rating, Discretionary Accrual, And Financial Distress on Credit Facilities in Manufacturing Companies in Indonesia Ema Annisa; Sri Ningsih
JDE (Journal of Developing Economies) Vol. 6 No. 2 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i2.24522

Abstract

This study aims to analyze the effect of credit rating, discretionary accrual, and financial distress on credit facilities, namely the rate spread, credit collateral, and maturity date extended by banks. This study uses static panel equations and panel data, consisting of 50 manufacturing companies in Indonesia from 2010 to 2017. The research methods used are the Pooled Least Square (PLS), Fixed Effect Model (FEM), Random Effect Model (REM), and logit panels. This study concludes that earnings management has a negative and insignificant impact on the rate spread and maturity date but positively and significantly affects the collateral variable. Financial distress has a positive and insignificant effect on the rate spread and maturity date but negatively impacts the collateral variable. The company’s investment rating has a negative and insignificant impact on the three dependent variables, namely, rate spread, collateral, and maturity date. Keywords: Credit Rating, Discretionary Accrual, Financial Distress, Credit FacilitiesJEL: C23, G21, G24
SME Inter-Clustering Linkage of East Java: Among Business Strategy and Cooperatives Deni Aditya Susanto
JDE (Journal of Developing Economies) Vol. 6 No. 2 (2021)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v6i2.18917

Abstract

The Indonesian SME cluster has not fully implemented the cluster concept, causing the SME cluster to stagnate. The Meubel SME Cluster of Pasuruan City and Malang City are two prime clusters working to show their economic crisis performance several times. This study aims to examine the factors of inter-firm linkage and business strategy on business performance. Methodologically, this study uses several analytical methods, namely multiple linear regression, to measure the influence between inter-firm linkage and business strategy variables on business performance, SWOT matrix to map strategy, and descriptive analysis to present non-parametric findings. This study analyzed 60 samples of MSEs from a population of 350 business units. The results of the study mentioned that aspects of business strategy (finance, marketing, human resources, research, development, and operations) had a more significant effect on business performance (sales, profits, assets, labor, and productivity) than inter-firm linkage (backward, forward, and horizontal). Through SWOT matrix analysis, the inter-clustering linkage of Malang City and Pasuruan cluster SMEs is naturally created. Access to raw materials and labor in the city of Malang began to be complicated even though consumers’ potential from large tourists and access to adequate technology. In contrast, Pasuruan City is lt to do marketing because of geographical conditions’ weakness even though the raw material resources and labor are abundant. The specialization of production is created with Pasuruan City as the production base and Malang City as the Marketing Base. Keywords: Cooperatives, Business Strategy, Inter-Clustering LinkageJEL: Q13, L21, C38
Decision Making Under Uncertainty Market During Covid-19 Rizka Jafar; Wayrohi Meilvidiri
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.21243

Abstract

This article discussed decision-making models in the context of crisis and uncertainty during the COVID-19 pandemic. Time and information constraints, the effectiveness of government policies, and public expectations were used to build the research model. Data were collected by distributing a semi-open and closed survey questionnaire (Google Forms). The statistical result showed that the decisions taken during a crisis/pandemic were more determined by the time constraints and the information (significantly positive) than the government policies and the public expectations (negative is not significant). Related to the effectiveness of the health and economic policies taken by the government, it concluded the effective response; however the virus recurs, the public health response succeeds, but measures are insufficient to prevent recurrence so that physical distancing continues (regionally) for several months. Analysis of the survey respondents towards the government economic policy assessed that government policy was still partially effective intervention, policy responses partially offset economic damage, the banking crisis was avoided, and muted recovery levels. The economic impact of co-19 predicted a slow economic recovery, supported by respondents’ expectation of pessimism towards future economic conditions.
Technical Efficiency of the Indonesian Textile and Textile Product Industry Imroatul Amaliyah; Dyah Wulan Sari; Mohammad Zeqi Yasin
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.23738

Abstract

This study investigates the determinants of the Indonesian textile and textile product (TPT) industry’s technical efficiency. Employing the rich, balanced panel data of 3,365 firms over 2007-2013 with a non-parametric approach to the Data Envelopment Analysis (DEA) Bootstrapping and Tobit regression, this study discovers that the production operations are inefficient, especially the companies upstream. The improvement of technical efficiency is driven by firm size, market concentration, foreign ownership, and exports. An intriguing finding is that the capital-labour ratio negatively impacts efficiency, implying higher capital for production will make the production even more inefficient. The machines in most TPT firms are old, so larger capital may not help. This study recommends the government design policies that support the machinery restructuration so that capital can support production efficiency.
Convergence Analysis of Economic Growth in South Kalimantan Yunita Sopiana; Djoko Mursinto; Lilik Sugiharti
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.28632

Abstract

The objectives of this research are 1) testing and analyzing the level of sigma convergence in South Kalimantan; 2) testing and analyzing the convergent beta, including the absolute beta convergence and conditional beta convergence. This study uses static panel data covering 13 regencies/cities in South Kalimantan observed between 2010 and 2019. The data analysis uses the ordinary least square (OLS) regression model. The results showed a sigma convergence marked by a declining variation coefficient in each regency/city. The absolute beta and conditional beta also converged. Poor areas’ economic growth is faster than the prosperous regions so they catch up. There has to be close coordination between the central and local governments in formulating policies in handling government and private investment and improving workers’ productivity in the agricultural and mining sectors in South Kalimantan.
Government Debt-Economic Growth Nexus in ASEAN-4 Countries Hoda Hajian; Azali Mohamed; Shivee Ranjanee A/P Kaliappan
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.30122

Abstract

Given a background of controversial political and theoretical academic debate and diverse empirical result, as Checherita and Rother (2010) concluded government debt and economic growth relationship is a country specific issue. This paper aims to investigate the causal and dynamic effect of government debt on output growth in the context of developing economies with generally medium debt regime in ASEAN-4 countries. Namely, Indonesia, Malaysia, the Philippines and Thailand during 1985 to 2019 years. A robust multi-variable vector autoregressive (VAR) model at level is employed to capture the long run relations, and causality is addressed using Toda-Yamamoto (1995) approach. As a by-product of the analysis the effect of government debt on two essential factors of sustainable GDP growth, namely, private capital formation and human capital is examined. The findings of this paper which contrast with the general negative effect found in some empirical studies for developing countries, shows debt does not cause output growth in Indonesia, Malaysia and Thailand but the reverse is true. GDP response to debt shock is negative, positive and positive, respectively yet statistically insignificant. In other hand, in the Philippines the result shows the economy is debt-driven as debt positively cause GDP without improving private investment or human capital. Overall, the findings support well debt management. Given current debt regime, improvements on tax collection and government fund allocation in terms of priorities and efficiencies must be continued.  
The Analysis of Coal Competitiveness and the Factors Affecting Indonesia’s Coal Exports to Main Destination Countries (A Case of 8 Destination Countries) Randy Admi; Samsubar Saleh; Gigih Fitrianto
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.33183

Abstract

Indonesia is one of the largest coal producers globally, with coal as the main export commodity compared to other commodities in the mining sector. The more competitive the world coal market is, the Indonesian coal market share faces threats from other coal exporting countries. The increasing commitment of countries to reduce air pollution by cutting the use of coal for power plants at PLTU. This study analyzes the competitiveness and various factors that influence the competitiveness of Indonesian coal in 8 export destination countries. This study seeks to determine how the development of Indonesia’s coal competitiveness to the eight central destination countries and what factors affect Indonesia’s coal exports for the 2009-2020 period to the eight central destination countries using RCA analysis and panel data regression. Based on the analysis, results show that the competitiveness of Indonesia’s coal exports to 8 destination countries is excellent. It can be seen from the RCA value obtained by each country from 2009-to 2020, which is greater than 1. Meanwhile, based on the results of panel data, regression estimates with random models show that GDP per capita, population, and coal prices have a negative and significant impact on coal competitiveness in 8 Indonesian coal importing countries. The study results did not find the effect of exchange rates and CPO prices on coal competitiveness in 8 Indonesian coal importing countries.
Official Development Assistance Effect on Infant Mortality and Human Development Index: Asia Evidence Rizky Herdika; Rossanto Dwi Handoyo; Adrianus Kabubu Hudang; Tri Haryanto
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.33198

Abstract

Official Development Assistance (ODA) is a program formed by the Development Assistance Committee (DAC) which aims to improve country development and eradicate poverty in developing countries. Many Asian countries are ODA recipients. The purpose of this study is  to determine the effect of ODA on infant mortality and the Human Development Index. The method used is panel data regression. Estimation results show that ODA has a significant effect on HDI, but not significantly on infant mortality.JEL Classification Codes : F10; F35; I15
Analysis of Islamic Rural Banks Efficiency in the East Region of Indonesia Sri Cahyaning Umi Salama
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.33554

Abstract

Islamic Rural Bank (BPRS) has important roles for micro-enterprises in Indonesia. This study analyzes the performance of Islamic Rural Bank in Eastern Indonesia, where the Muslim population is minority. Using 14 BPRS spread across a number of islands in Eastern Indonesia with a five-year vulnerability (2016- 2020) and using the Data Analysis Envelopment (DEA) Variable Return to Scale (BCC) model, it can be concluded that only 4 Islamic Rural Banks have been able to be efficient for five consecutive years. -consistent even during a pandemic. Meanwhile, 2 Islamic Rural Banks have not been able to work efficiently for five years and the remaining 8 Islamic Rural Banks are still not consistently working efficiently. During the pandemic, 70% of Islamic Rural Banks that were efficient in the previous year were able to operate efficiently, while 30% of BPRS that were efficient in the year before the pandemic were unable to work efficiently. It is also known that all Islamic Rural Banks that were not efficient in the year before the pandemic remained inefficient during the pandemic.
Dissemination of Economic Resilience in Scientific Evolution to Strengthen Community Economy in Facing Covid-19 Pandemic Through Bibliometric Analysis Sri Sarjana; Mahsa Amira Anindya Najib; Nur Khayati
JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022)
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/jde.v7i1.33796

Abstract

Economic resilience is the financial ability of a nation that relies on the utilization of existing resources in dealing with various problems whose sources are internal or external to create community welfare. Economic resilience is currently experiencing a severe test for all countries due to covid-19 pandemic, which has an impact on the economic crisis. A qualitative approach is applied by actualizing bibliometric analysis of the concept of economic resilience, which is the main focus. The research data is sourced from scientific journals on the concept of economic resilience, which was explored during the time span of the pandemic. The results of the study state that several theories found have a novel value that is rarely published and can help accelerate economic resilience, including disaster risk reduction, independent village, global value chain, ecology resilience, global recession, banking crisis, regional resilience, and village government. The main clusters derived from economic resilience include economic recovery, economic crisis, adaptation strategy, community empowerment, economic vulnerability, financial inclusion, circular economy, and good governance. Knowledge development needs to be carried out to disseminate current theories and issues so that researchers or academics can study and explore more so that the derived knowledge can help provide solutions and improve economic conditions.

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