scholarly journals THE IMPACT OF ISLAMIC MONETARY OPERATIONS AND AGGREGATE FINANCING ON ECONOMIC GROWTH IN INDONESIA (2010-2020)

2021 ◽  
Vol 7 (2) ◽  
pp. 185
Author(s):  
Adinda Madani ◽  
Tika Widiastuti
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Negative Relationship ◽  
Secondary Data ◽  
Open Market ◽  
Vector Error Correction ◽  
Analysis Technique ◽  
Economic Developments ◽  
Long Term Impact ◽  
The Impact

Islamic monetary operation policies are regulated to increase the effectiveness in facing economic developments, especially the monetary sector. The working mechanism of the Islamic monetary operation up to its impact on the development of the national economy illustrates the monetary policy transmission carried out by Bank Indonesia. The purpose of this study is to analyze the effects of Bank Indonesia Sharia Certificate (SBIS), Bank Indonesia Sharia Deposit Facility (FASBIS), Sharia Interbank Money Market (PUAS), and aggregate financing on Indonesia's economic growth in the period 2010 to 2020. This research method uses a quantitative approach with the analysis technique Vector Auto Regression (VAR) or Vector Error Correction Model (VECM) to see the long-term impact and shock response on certain variables. Using secondary data on the variables, it is obtained from the Indonesian Economic and Financial Statistics Bank Indonesia (SEKI-BI) and the Central Statistics Agency (BPS) for the period January 2010 to December 2020. This study found that the SBIS variable has a negative relationship with GDP. Meanwhile, the variables FASBIS, PUAS, and aggregate financing have a positive relationship with GDP. For the future, it can be used as input and consideration in policy making that will be determined in optimizing Islamic monetary policy in Indonesia. Further research that will discuss this topic should use Islamic monetary instruments that are more complete than Islamic open market operations and sharia standing facilities. As well as comparing with conventional monetary operation instruments as a comparison for Islamic monetary.

scholarly journals The Impact of Government Debt on the Economic Growth of Ghana: A Time Series Analysis from 1990-2015

2015 ◽  
Vol 2 (5) ◽  
pp. 31-39 ◽  
Author(s):  
Lucy Anning ◽  
Collins Frimpong Ofori ◽  
Ernest Kwame Affum
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Negative Relationship ◽  
Secondary Data ◽  
Government Debt ◽  
Ordinary Least Squares ◽  
Poor Countries ◽  
High Dependency ◽  
Heavily Indebted Poor Countries ◽  
The Impact

In this study we investigate the impact of government debt on the economic growth of Ghana adopting the methodology of the simple Ordinary Least Squares with data spanning from 1990 to 2015. Ghana has unfortunately found itself in the tragic situation of high external government debt which has led to high dependency on aid and other loans to support its development. These aids and loans have seen the debt of Ghana rise steadily over the years. As a result of the Heavily-Indebted Poor Countries (HIPC) which was presented by the IMF and World Bank in 1999, Ghana was judged to be a HIPC with unsustainable debt enabling the country to benefit from debt relief. We investigate the impact of government debt (both external and domestic) by testing three related models at the domestic and external levels including the general growth of the Ghanaian economy. In constructing our dataset, we build on the study of many scholars including a substantial amount of new materials from both primary and secondary data sources being Ministry of Finance (MOF) or Treasury Latest actual data: Government Finance Statistics Manual (GFSM), Ghana and World Bank. The research findings revealed that there is a negative relationship between debt (domestic and external) and growth in the economy of Ghana and recommend among others that government debt borrowing should be discouraged while increasing the revenue base through tax reform programs is encouraged.

scholarly journals Impact of Monetary Policy on Economic Growth: Empirical Evidence in Vietnam

2019 ◽  
Vol 5 (10) ◽  
Author(s):  
Tang My Sang
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Interest Rates ◽  
Empirical Evidence ◽  
Money Supply ◽  
Negative Impact ◽  
Positive Impact ◽  
Secondary Data ◽  
The Impact

Through the secondary data collected from 2009 to 2018, the research used Var method to test the impact of monetary policy on economic growth in Vietnam. The results show that there is a relationship between the variables of monetary policy and economic growth, in which the money supply has a positive impact at a high significant level, interest rates have a negative impact on Vietnam economic growth. From the results obtained, the research proposed solutions for operating monetary policy.

scholarly journals THE SAVINGS-TRADE-FISCAL GAP MODEL: APPLICATION IN SELECTED WEST AFRICAN STATES

2017 ◽  
Author(s):  
Efayena Oba Obukohwo ◽  
Buzugbe Patricia Ngozi
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Policy Making ◽  
Government Expenditure ◽  
Negative Relationship ◽  
Estimation Method ◽  
West African ◽  
Gap Model ◽  
African Countries ◽  
The Impact

With most African economies experiencing adverse economic misalignment in recent times, the need of enhancing the growth process cannot be overemphasized. Using a typical Savings-Trade-Fiscal Gap Model, the paper employed panel data estimation method to examine the impact of savings, trade and fiscal gap on economic growth of 15 West African countries. The paper finds a negative relationship between net trade and economic growth, while savings and government expenditure impacts positively on economic performance. The paper thus, among recommended that it is appropriate for all countries to eliminate fiscal dominance from monetary policy-making, reduce public debt and establish institutions that promote and encourage counter-cyclical fiscal policy, develop their financial systems, establish credibility in fiscal and monetary policy-making as well as encourage trade.

Globalisation, Economic Growth and Income Inequality in Nigeria

2020 ◽  
Vol 14 (2) ◽  
pp. 202-212
Author(s):  
NWOSA Philip Ifeakachukwu
Keyword(s):  
Economic Growth ◽  
Income Inequality ◽  
Secondary Data ◽  
Vector Error Correction ◽  
Distributed Lag ◽  
Long Run ◽  
Short Run ◽  
Auto Regressive ◽  
The Impact ◽  
Financial Globalisation

This article examines the link between globalisation, economic growth and income inequality in Nigeria using annual secondary data over the period 1981–2018. Specifically, it attempts to examine the following questions: (a) What is the direction of causation among globalisation, economic growth and inequality? (b) What is the impact of globalisation and economic growth on inequality? (iii) Do trade globalisation and financial globalisation have differential impacts on inequality in Nigeria? The article used both vector error correction modelling (VECM) and auto-regressive distributed lag (ARDL) techniques. The VECM results show a unidirectional causality from inequality and globalisation to economic growth in the long run, whereas a unidirectional causation was observed from inequality to economic growth in the short run. The ARDL estimate shows that globalisation and economic growth are significant determinants of inequality in Nigeria. Furthermore, it is observed that trade and financial globalisation influenced income inequality differently. In the light of these findings, the article recommends that the foreign direct investment should be channelled towards empowering the poor, and the dividends of economic growth should be evenly distributed to reduce the income inequality gap.

scholarly journals Impact of Monetary Policy and Foreign Direct Investment Against Indonesia's Economic Growth

2022 ◽  
Vol 4 (1) ◽  
Author(s):  
Faridsky Faridsky ◽  
Syarwani Canon ◽  
Boby Rantow Payu
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Exchange Rates ◽  
Interest Rates ◽  
Secondary Data ◽  
Analysis Model ◽  
Short Term ◽  
Indicator Variables ◽  
The Impact

This study aims to determine the impact of monetary policy and FDI on economic growth and discuss it. The monetary indicator variables used are inflation, interest rates and exchange rates. The data used in this study are secondary data in 1990-2019 sourced from data from the Central Bureau of National Statistics and the World Bank. The analysis model in this study uses Multiple Linear Regression with the Error Correction Model (ECM) analysis model. The results of the analysis show that in the long term monetary variables (inflation, interest rates and exchange rates) have a significant effect on economic growth. And in the short term FDI has a significant effect on economic growth. It is concluded that monetary variables (inflation, interest rates and exchange rates) are the main variables that affect economic growth in the long and short term.

scholarly journals An Empirical Analysis of Public Borrowing and Economic Growth in Nigeria

2020 ◽  
pp. 243-248
Author(s):  
Ayodele Thomas Duro ◽  
Williams Harley Tega ◽  
Afolabi Taofeek Sola ◽  
Adeyanju David Olanrewaju
Keyword(s):  
Economic Growth ◽  
Gross Domestic Product ◽  
Time Series Data ◽  
External Debt ◽  
Negative Relationship ◽  
Secondary Data ◽  
Debt Management ◽  
Domestic Product ◽  
Series Data ◽  
The Impact

This study seeks to evaluate the impact of public borrowing on economic growth in Nigeria using time series data from 1980 to 2018. Specifically, the study seeks to analyze the effect of domestic debt (proxy by Federal Government Bonds-FGB) and external debt (proxy by International Monetary Fund Loan-IMFL) on Nigerian’s Gross Domestic Product (GDP). To achieve this objective, secondary data was collected from the Central Bank of Nigeria Statistical bulleting and the Debt Management Office of Nigeria. A multiple regression model involving the dependent variable (GDP) and the independent variables (FGB and IMFL) was formulated and subjected to econometric analysis. These variables were adjusted with the Jarque-bera test of normality while the correlation result was used to check the possibility of multi-collinearity among the variables. The t-test was used to answer the research questions and test the formulated hypotheses at the 5percent statistical level. Results from the analysis show that a positive relationship exists between IMF Loan and Nigeria’s gross domestic product, while a negative relationship exists between FG Bonds and Nigeria’s gross domestic product, which violates the Keynesian theory of public debt. The study concludes that both domestic and external debt significantly affect economic growth in Nigeria. Therefore, it was recommended that public borrowing should be efficiently used and contracted solely for economic reasons and not for social or political reasons as this will help to avoid accumulation of debt stock over time.

scholarly journals Dampak ASEAN-China free trade agreement (ACFTA) terhadap pertumbuhan ekonomi Indonesia

2019 ◽  
Vol 15 (1) ◽  
pp. 1-14
Author(s):  
Azza Ayullah Kusuma
Keyword(s):  
Economic Growth ◽  
Exchange Rate ◽  
Free Trade Agreement ◽  
Secondary Data ◽  
Trade Agreement ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Long Run ◽  
The Impact

The purpose of this study investigates the impact of ACFTA, Indonesian trade, the exchange rate on economic growth in Indonesia. The data used secondary data during 1997-2016 were sourced from UNCOMTRADE, ASEAN Statistics, and World Bank. The method used is a quantitative approach with vector error correction model (VECM). The findings of this study in the long run show that Indonesian trade, ACFTA has a positive and significant effect on economic growth, while the rupiah exchange rate variable has a negative and significant effect on economic growth

scholarly journals Impact of fiscal and monetary policy on economic growth in Vietnam

2022 ◽  
Author(s):  
Le Thanh Tung
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Impulse Response Functions ◽  
Macroeconomic Policies ◽  
Correction Model ◽  
Vector Error Correction ◽  
Vector Error ◽  
Johansen Cointegration Test ◽  
The Impact ◽  
Fiscal And Monetary Policy

This paper uses the Johansen cointegration test and the Vector Error Correction Model (VECM) to study the impact of fiscal and monetary policy on economy growth in Vietnam during the period from quarter I/2004 to quarter II/2013. The results showed the cointegration relation between the macroeconomic policies and economic growth. Besides, the variance decomposition and impulse response functions from VECM model showed the impact of the two policies on economic growth were limited, in which the impact of the monetary policy on growth is greater than that of the fiscal policy on growth. Subsequently, the paper provides some recommendations to improve the efficiency of the implementation of these policies in Vietnam.

scholarly journals The impact of corruption on the economic growth in Bangladesh, India and Pakistan: An ARDL approach

2021 ◽  
Vol 12 (8) ◽  
pp. 2079-2093
Author(s):  
Md. Mamun Miah ◽  
Tahmina Akter Ratna ◽  
Shapan Chandra Majumder
Keyword(s):  
Economic Growth ◽  
Correction Term ◽  
Negative Relationship ◽  
Secondary Data ◽  
Fixed Effect Model ◽  
Positive Influence ◽  
Fixed Effect ◽  
Ardl Model ◽  
Effect Model ◽  
The Impact

Purpose of the study: Main purpose of the paper is to find out the impact of corruption on the economic growth of Bangladesh, India, and Pakistan. At the same time, our other objectives are to find the long and short-run effects of corruption on growth in these countries. Methodology: For conducting the study, we have taken the data from Bangladesh, India, and Pakistan. For this study necessary secondary data have been collected from 1990 to 2016 based on countries like Bangladesh, India, and Pakistan. Data for economic growth (dependent) and trade (independent) are collected from World Development Bank and data for corruption are taken from International Country Risk published by the PRS Group. The study has used ECM ARDL Model and the Fixed Effect Model.  Findings: The result of the fixed effect model shows a 1percent increase in corruption decreases GDP by 0.07 units and shows a negative relationship with economic growth. Again if trade increases by 1 percent then growth will increase by 0.09 units on average and shows a positive relationship with economic growth. ECM ARDL Model shows the positive coefficient of corruption but not significant but trade has a long-run positive influence on economic growth. The error correction term indicating that the adjustment is corrected by 70% in these three countries. Contributions: This paper may be helpful for existing literature gap and also for further research. It will be helpful for policy makers to control corruption in three countries.

scholarly journals The Impact of Human Capital Underutilization on Productivity and Economic Growth in Egypt

2021 ◽  
Vol 4 (2) ◽  
Author(s):  
Eman Ahmed Hashem ◽  
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Negative Relationship ◽  
Training Systems ◽  
Integration Test ◽  
Augmented Dickey Fuller ◽  
Short Run ◽  
Econometric Tests ◽  
Long Term Impact ◽  
The Impact

This study estimates the effects of human capital underutilization on economic growth and productivity. This paper investigated the relationship between underutilization of human capital and economic growth using a variety of econometric tests like the Augmented Dickey Fuller test, the Johansen Integration test, and the ARDL model. The results indicate that, there is a negative relationship between human capital underutilization and economic growth. The results indicate that underutilization of human capital has a greater long-term impact on economic growth than it does in the short run. Reforms to education and training systems are required in order to maximise human capital utilisation and thus increase productivity and economic growth.

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