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Etikonomi : Jurnal Ekonomi
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This is an Open Access Journal

Open Access journal
ISSN (Print) 1412-8969 - ISSN (Online) 2461-0771
Published by UIN Syarif Hidayatullah Jakarta

[9 journals]

Nexus between Consumption, Income and Price Changes: Asymmetric Evidence
from NARDL Mode
- Authors: Raheel Gohar, Bisharat Hussain Chang, Omer Faruk Derindag, Zahida Abro
  Pages: 213 - 228
  Abstract: Previous research has primarily examined the link between price, income, and consumer spending using linear regression models. On the other hand, the latest evidence shows an asymmetric link among economic and financial variables. We contribute to the literature by employing a novel technique known as the asymmetric ARDL model. This approach is used to investigate the impact of favorable and unfavorable changes in income and prices on household consumption. The results show that higher income has a substantial and beneficial effect on household expenditures in the short term and long term. On the other hand, a fall in income has no impact on consumer spending. Moreover, for most developing countries, price adjustments have a negligible effect on consumer expenditures. Our findings suggest that implementing the same policy initiatives across periods of rising and falling income and prices may result in potential losses.JEL Classification: E31, F31, C22
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.23339
  Issue No: Vol. 21, No. 2 (2022)
Diverse Outreach of Macroprudential Policy Effect on Household and
Non-Financial Corporate Loan: An Indication of Macroprudential Policy
Leak'
- Authors: Khoirul Sukma, Akhmad Syakir Kurnia
  Pages: 229 - 238
  Abstract: Despite increasing awareness of the importance of countercyclical policies to overcome financial system instability, the potential leak of such policies comes to attention due to economic agents' risk-taking behavior. This paper aims to investigate the potential leaks of the policy. Using the Estimator General Method of Moments-difference (GMM-diff), we found evidence that macroprudential policies are less functional in controlling non-financial firms' credit growth than household credit growth. The result amplifies hesitation about the effectiveness of macroprudential policy caused by potential leaks coming from non-financial firms' risk-taking behavior. We also found that macroprudential policy in developing countries is less effective than in developed countries. Hence, the financial stability goal cannot rely solely on macroprudential policy. Instead, it needs support from other mutual policies, such as the capital control policy and transparent regulatory boundaries, to prevent partial risk shift from regulated financial institutions to unregulated, prevalent in the less developed financial system.JEL Classification: E42, E44, E52, E58
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24304
  Issue No: Vol. 21, No. 2 (2022)
The Nexus among Agriculture Sector Development and Environmental
Degradation in Emerging Economies
- Authors: Buket Altınöz
  Pages: 239 - 250
  Abstract: This paper aims to determine the effect of agriculture sector
  development on CO2 emissions in 10 big emerging market
  economies. This relationship is tested for the first time for emerging
  economies by using the panel quantile regression approach. The
  results suggest that agricultural value-added mitigate emissions
  in lower, middle-lower, and upper quantile levels. This result
  implies that the agricultural sector is an effective policy tool
  in reducing pollution in these countries. Economic growth and
  natural resources rent have a positive impact on pollution. Financial
  development only has an emission-reducing effect at the middleupper
  quantile level, while globalization has a negative impact on
  CO2 emissions both in the middle-upper and upper quantiles.
  These results justify the consideration of heterogeneous effects and
  allow clear policy implications. Moreover, the critical importance
  of agricultural policies for environmental quality in these countries
  is emphasized with concrete evidence.JEL Classification: O13, Q56, C33
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.25073
  Issue No: Vol. 21, No. 2 (2022)
Bangladesh and SAARC Countries: Bilateral Trade and Flaring of Economic
Cooperation
- Authors: Md. Abu Issa Gazi, Abdullah Al Masud, Razuan Ahmed Shuvro, Abu Ishaque Hossain, Muhammad Khalilur Rahman
  Pages: 251 - 268
  Abstract: The primary purpose of this study is to observe the economic and
  international trade relationships between Bangladesh and SAARC
  countries during the Fiscal Years 2015-2016 to 2020-2021. This
  research uses panel data to examine the relationship between
  the nature and direction of exports and economic growth.
  The researcher found that economic cooperation with SAARC
  countries impacted economic growth, but there was insufficient
  export adaptation. The study also showed that economic relations
  have strengthened in recent epochs, and bilateral trade has
  increased compared to previous years with SAARC countries.
  The obtained results also showed that Bangladesh has suffered
  from a long-standing trade imbalance with India and is in a
  good position with Afghanistan, Sri Lanka, Bhutan, Maldives,
  Nepal, and Pakistan. Our findings are beneficial for international
  trade stakeholders and suggest that steps should be taken to
  increase exports to reduce the trade deficit. Concern authorities
  should be more aware of the expansion of trade facilitation and
  infrastructure development.JEL Classification: F5, F18, F23, F50, M16
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24353
  Issue No: Vol. 21, No. 2 (2022)
Do Tax Policies in Nigeria Have Similar Implications for the Manufacturing
Sector Output'
- Authors: Musa Abdullahi Sakanko, Jeremiah Nshe Manomi, Abubakar Ijoko, Usman Abdulkareem Audu
  Pages: 269 - 280
  Abstract: The study examines whether tax policies in Nigeria have similar
  implications on the manufacturing sector’s output during the
  1994Q1-2020Q4 period using the ARDL bounds testing approach.
  The bounds testing result suggests the presence of cointegration
  between tax policies and the manufacturing sector output. Further,
  the estimation results demonstrate that company income tax (CIT)
  and import tax are positively related to manufacturing sector
  output. In contrast, value-added tax (VAT) has a negative effect
  on the manufacturing sector output, both in the short- and longterm.
  In addition, the results of the Granger causality test indicate
  a unidirectional causal relationship running from tax policies to
  the manufacturing sector output and not vice versa. Thus, policies
  and measures are recommended to prioritize the CIT and import
  tax, review the assortment in the VAT, and ensure accountability
  and transparency in the tax system.JEL Classification: C32, L60, H22
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.25118
  Issue No: Vol. 21, No. 2 (2022)
Governance and Bank Performance: Does Bank Risk Matter '
- Authors: Estu Widarwati, Soni Karmila, Nunik Nurmalasari
  Pages: 281 - 294
  Abstract: Governance becomes a guideline for the banking management system and is essential for banking survival during regular economic crises. We investigate the impact of governance on performance in the Indonesians' conventional and examine the mediating role of bank risk in bank governance and performance relationship. The samples are 18 conventional banks listed on Indonesia Stock Exchange (IDX) from 2014 to 2021 and analyzed using panel data regression and sobel test. We find the risk of state-own bank higher than private bank and foreign bank that could leads to lower performance. Then the results indicate that board size and board age influence bank risk and bank performance. Banks should consider the board size for efficiency and also the maximum standard of their directors' age based on arguments related to innovation-based work productivity in the competitive banking industry. The subsequent exploration of banking governance research is needed by examining the differences in bank ownership and bank characteristics linked to bank risk which is strong evidence as mediation in this study.JEL Classification: G20, G30, G32, G34
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24364
  Issue No: Vol. 21, No. 2 (2022)
The Impact of Paternalistic Leadership on Innovative Work Behavior. A Test
of Mediation Model.
- Authors: Tayaba Patel, Haroon Bakari
  Pages: 295 - 312
  Abstract: Leadership is a paramount factor in enhancing employee innovation and creativity. This study aims to test the impact of paternalistic leadership (PL) on employees’ innovative work behavior (IWB) and to check the mediating role of employee Psychological Safety (PS). Using positivistic philosophy and a deductive approach, this study has employed a convenience sampling technique to collect data through questionnaires from 317 employees working in the Textile and IT industries. Partial Least Square Structural equation modeling (PLS-SEM) is used to analyze the data. Findings suggest that psychological safety was positively related to innovative work behavior and psychological safety mediated this link. This study is among very few studies that have tested the paternalistic leadership style in the innovative context of Pakistan. A major contribution for practitioners is to know that paternalistic leadership will enhance employee innovative work behavior through psychological safety. Moreover, data from the textile and software industries also increased the relevance and originality of this study.JEL Classification: J24, J28, O31, L67, L86
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.21602
  Issue No: Vol. 21, No. 2 (2022)
Circular Economy Business Models in the Micro, Small, and Medium
Enterprises: A Review
- Authors: Astadi Pangarso, Kristina Sisilia, Yahya Peranginangin
  Pages: 313 - 334
  Abstract: MSME business should be built based on circular economy (CE)-
  based business models. The purpose of this article is to present
  a review of several articles that have been published in Scopus
  discussing the CE-based business model and MSMEs to find
  research gaps and future research agendas. It used some tools of the
  theoretical assay, such as bibliometric analysis, systematic literature
  review, theory, context, and characteristic methodology (TCCM).
  The paper outlines all findings of analyzed literature about CE’s
  business model applied by MSME in the Scopus document until
  June 2021. The findings of this study provided more high-quality
  evidence about research and practical gaps regarding the CE-based
  business model and MSME, which needs more research focuses
  on market desirability in the future and more understanding of
  internal processes in MSME’s case studies. The implication of this
  article is to provide a future research agenda based on a collection
  of research gaps as a basis for empirical research.JEL Classification: L26, M10, Q56
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24052
  Issue No: Vol. 21, No. 2 (2022)
How Corporate Social Responsibility Enhance Banking Sector Customer
Loyalty in Digital Environment' An Empirical Study
- Authors: Muddassar Sarfraz, Muhammad Ibrahim Abdullah, Samina Arif, Jasim Tariq, Ilknur Ozturk
  Pages: 335 - 354
  Abstract: This study examines the relationship between corporate social responsibility (CSR) perceptions and customer loyalty in the banking sector while considering the mediating effects of customer satisfaction, corporate image, corporate reputation, service quality between CSR activities and customer loyalty. A self-administered survey was conducted on the banking customers in Pakistan. Based on 221 customers' data, the analysis was performed using the structural equation modeling (SEM) approach. The study results show that CSR positively influences customer loyalty in the banking sector, customer satisfaction, corporate image, and service quality affect the customer-business relationship. Notably, a new finding from the study highlights the importance of the mediating role of corporate image and service quality in enhancing the effect of CSR on customer satisfaction. The research findings provide valuable insights to banks in developing counties on developing a CSR strategy to strengthen customer loyalty.JEL Classification: M19, L21, M10, D22
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24548
  Issue No: Vol. 21, No. 2 (2022)
Islamic Fintech Research: Systematic Review using Mainstream Databases
- Authors: Egi Arvian Firmansyah, Budi Harsanto
  Pages: 355 - 368
  Abstract: The number of Islamic financial technology (fintech) study grows
  along with technological advancement and fintech itself. This
  study aims to review the studies on Islamic fintech published
  in the journals indexed by Scopus and Web of Science using a
  systematic literature review approach. As shown in the framework
  proposed in this study, we found five elements of the entire
  observed papers. The customer has been the most discussed
  element among researchers of Islamic fintech. As Islamic fintech is
  still in the early stage of development, no study in our observed
  documents discusses operations. It is one of the essential elements
  to be investigated, seeing the dynamic of the business-operating
  environment. This paper contributes to the literature by providing
  an up-to-date review. It is among the first reviews on this subject
  using the major academic databases and offering a more holistic
  framework than previous studies.JEL Classification: F65, Z12
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24602
  Issue No: Vol. 21, No. 2 (2022)
Islamic Philantropy Adaptation Towards Financial Social Exclusion Among
Independen Oil Palm Smallholder
- Authors: Khairul Anwar Mohd Nor, Mohd Adib Ismail, Muhammad Hakimi Mohd Shafiai, Khairunnisa Hasbullah, Mohd Noor Mohd Ali
  Pages: 369 - 382
  Abstract: Social exclusion among independent smallholders of the oil palm sector is a socioeconomic problem that is closely linked to the incidence of poverty and economic inequality. Although there are several Islamic banking institutions that provide micro credit to the farmers, but not received much response due to lack of attractiveness and non-competitive features especially to independent smallholder. Therefore, other channels like philanthropy are seen as an alternative for smallholder empowerment in the form of integration between zakat business capital, and business incubators as mechanisms to address these issues. The objective of this study is to examine the role of Islamic philanthropic instruments of zakat and waqf in addressing the problem. The methods used in this study are based on qualitative approach like research interviews, observations, written expert experiences, and research publications. The findings provide valuable insights for stakeholders into Islamic philanthropy role and the importance of exposure in improving ISH performance, which could help them in (re-) align their agricultural practices and formulating strategies for industry player’s guidance.JEL Classification: A13, G21, J24, Q02, Z12
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.18677
  Issue No: Vol. 21, No. 2 (2022)
Purchase Intention of Halal Cosmetics: The Mediating Role of Attitude
- Authors: Maghfira Rizky Maulani, Nuryakin Nuryakin, Nur Hidayah
  Pages: 383 - 398
  Abstract: This study investigates the effect of knowledge, religiosity, and
  attitude on purchase intention. A more comprehensive study
  model is considered an effort to add to the literature on the study
  of halal cosmetics, which is still very limited amid the progress of
  the halal cosmetics industry in Indonesia. The millennial sample
  was used in this study and then analyzed using SEM. According
  to the result, knowledge did not significantly impact purchase
  intentions but played an essential role in influencing attitudes.
  Meanwhile, religiosity has been proven to significantly impact and
  contribute the most to determining purchase intention but was
  insignificant in influencing attitudes. Finally, the result also found
  that attitudes mediated the influence of knowledge and religiosity
  on purchase intention. For this reason, industry players should
  pay more attention to religiosity in promoting their products.
  Consumers must be given additional knowledge to influence
  positive consumer behavior, encouraging purchase intention. The
  implication of this study is limited to the millennial sample of
  the halal cosmetics product in Indonesia.JEL Classification: M31, M37
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24131
  Issue No: Vol. 21, No. 2 (2022)
Do Fraud Hexagon Components Promote Fraud in Indonesia'
- Authors: Dio Alfarago, Azas Mabrur
  Pages: 399 - 410
  Abstract: This study provides information about the likelihood of the nature
  of fraud companies so that investors and stakeholders can make
  better decisions. The Beneish model and the fraud theory are
  two well-developed ideas for understanding fraud motivations
  and detecting earnings manipulation in a corporation. Unlike
  previous studies using the fraud triangle, this study uses the latest
  theory (the fraud hexagon) perspective to detect fraud actions.
  Thus, this study aims to examine the applicability of the fraud
  hexagon components in combination with the M-score from
  the Beneish model. Seventy-six manufacturing firms listed on
  Indonesia Stock Exchange from 2015 to 2019 were chosen as
  samples. The findings confirmed that enterprises with fraud tend
  to: be more financially stable, be more leveraged, have higher
  profitability, have cooperation projects with the government, have
  more related-party transactions, have more auditor changes, be
  less liquid, less changing directors, be less supervised, and less
  display CEO.’s picture.JEL Classification: K40, K42
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.24653
  Issue No: Vol. 21, No. 2 (2022)
Tax Avoidance Mediated by Constitutional Ownership as Moderating Variables
- Authors: Feryal Amima Widadi, Bambang Subroto, Aulia Fuad Rahman
  Pages: 411 - 430
  Abstract: This study analyzes Tax Avoidance Mediated by Institutional
  Ownership as a Moderating Variable. The analytical method
  used is Partial Least Square (PLS), with a sample of seventyseven
  food and beverage manufacturing companies listed on the
  IDX for 2014 - 2020. The findings of this study show that
  thin capitalization, profitability, and return on assets (ROA) on
  tax avoidance are influenced by institutional ownership. This
  condition is one of the challenging issues to overcome in terms
  of tax avoidance for manufacturing companies in the food and
  beverage sector of the food and beverage sector listed on the
  Indonesia Stock Exchange. The results of this study can be used
  as a reference in making decisions for company owners and
  managers. Before investing their shares, investors will evaluate
  whether tax avoidance by the company will provide benefits to
  overcome the tax burden or vice versa.JEL Classification: H26, E43, D24, G32
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.25799
  Issue No: Vol. 21, No. 2 (2022)
Factors Affecting Credit Growth of Vietnamese Commercial Banks
- Authors: Thanh Tung Diep, Van Thuan Nguyen
  Pages: 431 - 440
  Abstract: This research analyzes the factors that affect the credit growth
  of the Vietnamese commercial banking system. This study use
  data from the annual reports and financial statements of 16
  commercial banks listed on the HOSE, HNX, and UPCOM
  exchanges that have operated continuously from 2011 to 2020.
  Two linear regression models were employed with two dependent
  variables: the credit growth rate and credit size. The findings
  indicate that credit size in the previous period, the annual
  growth rate of capital mobilization, bank size, and return on
  assets (ROA) positively affect the credit growth of Vietnamese
  commercial banks while liquidity ratio negatively affects them.
  Also, the bad debt ratio’s effect on credit growth is unclear. Hence,
  some suggestions and recommendations are given for commercial
  banks to maintain stable, safe, and sustainable credit growth.JEL Classification: G21, E50, E52
  PubDate: 2022-06-24
  DOI: 10.15408/etk.v21i2.25559
  Issue No: Vol. 21, No. 2 (2022)