RSI Journal

Archive for December, 2020

DYNAMIC CAUSALITIES BETWEEN WORLD OIL PRICE AND INDONESIA’S COCOA MARKET: EVIDENCE FROM THE 2008 GLOBAL FINANCIAL CRISIS AND THE 2011 EUROPEAN DEBT CRISIS

Mukhlis MUKHLIS

PhD Scholar in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Lecturer, Universitas Almuslim, Indonesia

mukhlis.umuslim@gmail.com

Raja MASBAR

Professor in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

raja.masbar53@gmail.com

Sofyan SYAHNUR

Senior Lecturer in Economics, Faculty of Economics Business, Universitas Syiah Kuala, Indonesia

kabari_sofyan@unsyiah.ac.id

M. Shabri Abd. MAJID

Senior Lecturer in Economics, Faculty of Economics Business, Universitas Syiah Kuala, Indonesia, Corresponding author

mshabri@unsyiah.ac.id

Abstract

This study examines and analyzes the short- and long-run dynamic causal relationship between the prices of Indonesian and world cocoa beans during the 2008 global financial crisis and the 2011 European debt crisis. Time series analysis consisting of cointegration, Vector Error Correction Model (VECM) and Granger causality are used to test long-run equilibrium, short- and long-run relationships, and dynamic causalities between the Indonesian cocoa and world cooa prices. The study found a long-run equilibrium between Indonesian cocoa price, world cocoa price, exchange rate, and world oil price. The Indonesian and world cocoa markets have a mutually influential relationship. However, an inefficient transmission of corrective adjustments in the Indonesian cocoa prices was documented over the study period. The exchange rate consistently affected Indonesian cocoa prices, while fluctuations in world oil prices were independent to domestic and world cocoa markets over the study period. Overall, the study documented a long-run equilibrium between Indonesian and global cocoa markets at the different level of speed of adjustment of the world cocoa price towards long-run equilibrium between the two economic crises. The Indonesian government needs to enhance international trade cooperation and pricing policy harmonization among cocoa producing- and importing-countries.

Keywords: Cocoa price, Exchange rate, Oil price, World cocoa market, Economic crisis

JEL classification: C01, C23, O13.

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FINANCIAL INCLUSION AND POVERTY REDUCTION IN ACEH PROVINCE: COMPARISON BETWEEN CORE REGION AND PERIPHERY REGION

ALIASUDDIN

Associate Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

aliasuddin@unsyiah.ac.id

Taufiq C. DAWOOD

Assistant Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

taufiq.dawood@unsyiah.ac.id

Nanda RAHMI

Assistant Professor at the Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Banda Aceh, Indonesia

nanda_rahmi84@unsyiah.ac.id

Abstract

This study analyzes the role of financial inclusion on poverty reduction in Aceh Province, the comparison between the core region (Banda Aceh) and periphery region (Aceh Besar).  This study uses cross-sectional data from Banda Aceh and Aceh Besar with sample total of 598 and 686 households, respectively.  The logistic model is used in this study.  The results show that financial inclusion is negatively not significant in Banda Aceh but negatively significant in Aceh Besar.  Meanwhile, sex and educational level are negatively significant in Banda Aceh and Aceh Besar, and family size is positively significant in both regions.  The biggest marginal effect on poverty is sex in Banda Aceh and Aceh Besar regions.  Female is more vulnerable to be poor compared to male in term of poverty

Keywords: financial inclusion, Aceh, poverty reduction, logistic

JEL classification: N95, B23, B26, I32

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DOES ZAKAT MATTER FOR HUMAN DEVELOPMENT? AN EMPIRICAL EVIDENCE FROM INDONESIA

I.K. Balyanda AKMAL

Postgraduate Student in Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

balyanda@gmail.com

M. Shabri Abd. MAJID

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

Corresponding author

mshabri@unsyiah.ac.id

Eddy GUNAWAN

Senior Lecturer, Faculty of Economics and Business, Universitas Syiah Kuala, Indonesia

egunawan@unsyiah.ac.id

Abstract

This study aims to empirically measure and analyze the contribution zakat to human development and, consequently towards the achievement of the Sustainability Development Goals (SDGs) program in Indonesia. Specifically, this study intends to measure the differences in the Human Development Index (HDI) of zakat recipients before and after receiving zakat and measure the effect of zakat on the HDI and its components. The response to these issues, the study estimates the value of the Human Development Index (HDI) at a minor level; the individual and household levels. 100 recipients of zakat (mustahik) from the three programs of zakat distribution by the zakat institution of Aceh Province, Indonesia (Baitul Mal Aceh – BMA) were selected as the sample of the study using a combination of purposive and proportionate stratified random samplings. These zakat programs include zakat for cancer and thalassemia patients, zakat for one family one undergraduate scholarship, and zakat for buying working capital for the poor families. The paired t-test is adopted to assess the differences in HDI of zakat recipients before and after receiving zakat, while the multiple linear regression is used to measure the effect of zakat on the HDI and its components. The study found that, after receiving zakat, the HDI of zakat recipients is higher than before. Zakat is also recorded to have a significant positive effect on the HDI, while the family size affected negatively the HDI and the types of zakat and profession of zakat recipients have an insignificant effect on the HDI. These findings suggest the positive role of zakat in improving human development and it could be used as one of the instruments to accelerate the achievement of the SDGs agenda in Indonesia.

Keywords: Education, Health, Human Development, Welfare, Zakat

JEL classification: D64, O15, Q01, I15, I25, I38

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