{"title":"Economic Inequality, Regional Development, and Internal Migration in Indonesia","authors":"Irfan Teguh Prima, Khoirunurrofik Khoirunurrofik","doi":"10.47291/EFI.V65I1.606","DOIUrl":"https://doi.org/10.47291/EFI.V65I1.606","url":null,"abstract":"This study aims to probe the determinants of inter-provincial migration flows in Indonesia and how economic and development changes affect migration patterns. We employ three census periods, 1990, 2000, and 2010. Our study finds that an increase in relative inequality between origin and destination provinces decreases inter-provincial migration and relatively high distance elasticity in Indonesia leads to high migration cost. People are more inclined to migrate due to push factors as opposed to pull factors from the destination region, thus indicating a strong relationship between the level of regional development and the willingness of people to migrate.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43977721","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Gender Diversity in the Boardroom Improve Firm Performance? Evidence from Indonesia","authors":"Pananda Pasaribu, M. Masripah, Bonnie Mindosa","doi":"10.7454/EFI.V65I1.597","DOIUrl":"https://doi.org/10.7454/EFI.V65I1.597","url":null,"abstract":"This study investigates board gender diversity in Indonesia’s listed firms and its effect on firm performance from 2011–2016. After addressing the endogeneity of diversity, the results in this paper show that the proportion of female in the boardroom marginally improve firm performance. Firms with two or more female in the boardroom have a stronger impact on firm performance than firms with one female in the boardroom, consistent with the critical mass effect. Finally, certain sectors will gain more benefits of appointing females in the boardroom. The results suggest that increasing gender diversity in the boardrooms can have beneficial effects on firm performance, but the benefits may be subject to the critical mass and firm industry.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":" ","pages":""},"PeriodicalIF":0.0,"publicationDate":"2019-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47442467","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Bakri Abdul Karim, Zulkefly Abdul Karim, Mohamad Naufal Nasharuddin
{"title":"Corruption and Foreign Direct Investment (FDI) in ASEAN-5: A Panel Evidence","authors":"Bakri Abdul Karim, Zulkefly Abdul Karim, Mohamad Naufal Nasharuddin","doi":"10.47291/EFI.V64I2.594","DOIUrl":"https://doi.org/10.47291/EFI.V64I2.594","url":null,"abstract":"This paper examines the effects of corruption on the inflow of FDI in ASEAN-5 countries by controlling two macroeconomic variables namely Gross Domestic Product (GDP) and inflation. Using a static panel data estimation, the results show the significant relationship between corruption and Gross Domestic Product (GDP) on the inflow of FDI in ASEAN-5. This results indicate that less corrupted countries and larger market size would attract more FDI inflows. The policy implications from this study suggests that ASEAN-5 governments need to have concerted and continues efforts in improving the integrity and credibility of their administration and transactions. In addition, maintaining their sustainable of economic growth is also crucial as a full factor in attracting more FDI inflows in future.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"145-156"},"PeriodicalIF":0.0,"publicationDate":"2019-01-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48111620","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Financial Development and Income Inequality in Indonesia: A Sub-national Level Analysis","authors":"Harry Aginta, Debby A. Soraya, Wahyu Santoso","doi":"10.47291/EFI.V64I2.584","DOIUrl":"https://doi.org/10.47291/EFI.V64I2.584","url":null,"abstract":"This study constructs financial inclusion indicator and analyzes the link of financial inclusion and income inequality for 33 provinces in Indonesia. By using Fixed Effect Panel Model, we find financial inclusion appears to have insignificant effect to on inequality at national level. While at sub-national level, adding other variables such as GRDP, years of schooling, and trade openness, we find financial inclusion appears to have negative and significant impact on income inequality in manufacture and mining-based provinces, not in agriculture-based. The results suggest that financial inclusion helps to lower income inequality when economic condition encourage people to utilize financial access for productive purposes.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"111-130"},"PeriodicalIF":0.0,"publicationDate":"2018-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46877990","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Does Manufacturing Sophistication Lead to Higher Demand for Vocational Workers? Evidence from Indonesia","authors":"Padang Wicaksono, Lionel Priyadi","doi":"10.7454/EFI.V64I1.580","DOIUrl":"https://doi.org/10.7454/EFI.V64I1.580","url":null,"abstract":"Indonesia post-crisis manufacturing growth has been dominated by technologically sophisticated industry. Hypothetically, this development would increase the demand for skilled and more specialized workers like vocational school graduates. However, statistical evidences show that manufacturing sophistication stimulated by integration with the Global Production Network increase demand for vocational as well as general high school graduates. Moreover, higher demand does not necessarily result in sustainable career prospect, as many vocational graduates still have limited opportunity to improve their skills while climbing the seniority ladder possibly caused by shifting Global Value Chain from export-oriented toward domestic market-oriented that affect the industry’s technological complexity","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"59-72"},"PeriodicalIF":0.0,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48841289","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The Relationship of VAT Rate and Revenues in the Case of Informality","authors":"Fikri R. Arrachman, R. Qibthiyyah","doi":"10.7454/EFI.V64I1.581","DOIUrl":"https://doi.org/10.7454/EFI.V64I1.581","url":null,"abstract":"This study explored relationship between tax rate and revenues in the case of VAT, one of few type of consumption taxes that is considered to be a broad-based tax. Based on a larger set of countries - in comparison to previous studies, this study shows VAT rate has an inverted U-shaped relationship to VAT revenues, confirming the Laffer Curve theory. Exploring further on the effect of informality to maximum VAT rate, we found that higher informality will reduce government flexibility in its effort to increase tax rate. Furthermore, openness has significant and positive effect on VAT revenues performance, and tax administration capacity may also play role on improving VAT revenues performance","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"73-96"},"PeriodicalIF":0.0,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45702825","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Modification of the Regulatory Impact Assessment on Indonesia’s Economic Policies","authors":"Kiki Verico","doi":"10.7454/EFI.V64I1.579","DOIUrl":"https://doi.org/10.7454/EFI.V64I1.579","url":null,"abstract":"This paper modifies the Regulatory Impact Assessment (RIA) method in Indonesia’s trade, investment, and industrial incentive policies. First, it analyses the Indonesian Bilateral Trade Agreements of Indonesia – Japan Economic Partnership Agreement (IJEPA) and Indonesia – Pakistan Preferential Trade Agreement (IP-PTA). This paper found if the trading partner has GNI per capita higher than Indonesia’s then the expected outcome was the increasing FDI inflows and if its GNI per capita lower therefore the most top foreseeable result was the rising net trade balance of Indonesia. Second, it analyses industrial sector incentive analysis and found that firms prefer supply-side than fiscal incentives.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"43-58"},"PeriodicalIF":0.0,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43978448","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
F. Kacaribu, A. U. Lumbanraja, M. D. Revindo, Syahda Sabrina, Zehan Pricilia, Yeremia Natanael
{"title":"Recent Developments in Indonesia’s Macro-economy and Trade, Q1-2018","authors":"F. Kacaribu, A. U. Lumbanraja, M. D. Revindo, Syahda Sabrina, Zehan Pricilia, Yeremia Natanael","doi":"10.47291/EFI.V64I1.582","DOIUrl":"https://doi.org/10.47291/EFI.V64I1.582","url":null,"abstract":"This paper discusses Indonesia’s macroeconomic and trade development in the first quarter of 2018. The macroeconomic data shows that the industrial growth was inhibited by regulatory regime inconsistency, while consumption growth still lagged overall GDP growth, and investment growth tended to rise. The trade data shows that the non-oil-and-gas commodities dominated its export, although the commodities’ terms-of-trade declined. Indonesia’s imports were mostly used as raw and auxiliary materials for the input of domestic production. The data also reveals that the larger the firms, the stronger tendency that they have comparative advantage in capital-intensive commodities, and vice versa.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"1-24"},"PeriodicalIF":0.0,"publicationDate":"2018-08-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45598037","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Tourism and Economic Development in ASEAN 1998-2013","authors":"Berly Martawardaya","doi":"10.7454/EFI.V63I2.571","DOIUrl":"https://doi.org/10.7454/EFI.V63I2.571","url":null,"abstract":"Many countries support government policies to encourage tourism sector, including ASEAN countries, due to an assumption that tourism contributes positively to GDP and poverty reduction. This study investigates that assumption, as well as the correlation between tourism and HDI, by applying panel data regression to eight ASEAN countries (Brunei Darussalam, Indonesia, Laos Singapore, Malaysia, Thailand, the Philippines, and Vietnam,) during 1998--2013. We found that the number of international tourist arrivals as a proxy variable for tourism have a significant and positive correlation with poverty reduction. Tourism is also proven to increase GDP per capita (albeit in a smaller magnitude) and increase HDI (in an even smaller scale). These findings confirmed our hypothesis on the positive effects of tourism. It is recommended that the tourist promotion is continued while studying the best practices to strategically develop the tourism sector in order to strengthen the positive correlation.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"63 1","pages":"114-125"},"PeriodicalIF":0.0,"publicationDate":"2018-06-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47115789","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Income Inequality between Formal-Informal Employees Based on Education Group","authors":"Riska Dwi Wulandari, Susilo, Dias Satria","doi":"10.7454/EFI.V64I1.583","DOIUrl":"https://doi.org/10.7454/EFI.V64I1.583","url":null,"abstract":"Integrally, the informal sector deals with the formal sector with pro-cyclical nature or as a complementary sector. Such conditions allow for wage disparity between sectors even in the same education group. Thus, this study seeks to determine the determinants of wage inequality between formal and informal employees in skilled and unskilled workers in Indonesia in 2017 using Blinder-Oaxaca decomposition. The results showed that the discrimination factor had a greater influence than the endowment factor on wage inequality and the endowment factors that contributed to the increase in wage inequality between the two groups were age squared, experience, and job training.","PeriodicalId":31064,"journal":{"name":"Economics and Finance in Indonesia","volume":"64 1","pages":"25-42"},"PeriodicalIF":0.0,"publicationDate":"2018-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44001223","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}