Month: June 2019

DOES INDONESIA AS THE WORLD LARGEST PALM OIL PRODUCING COUNTRY DETERMINE THE WORLD CRUDE PALM OIL PRICE VOLATILITY?

M. Shabri Abd. MAJID*

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

mshabri@unsyiah.ac.id

*Corresponding author

Sofyan SYAHNUR

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

kabari_sofyan@unsyiah.ac.id

Abstract

This study contributes to the existing literature on the current phenomena of a higher level of world palm oil volatility by exploring the bivariate causal relationship between Indonesian and Malaysian CPO exports, the world crude and soybean oils, exchange rate, and the world CPO price volatility using the bivariate Granger causality analysis. It also attempts to explore the extent to which shocks in these variables influenced the world CPO price volatility using the impulse response functions and variance decomposition analyses over the period from January 2008 to December 2017. The study found that the world CPO price volatility is mainly Granger-caused by the changes in the real exchange rate. The Indonesian CPO export only found to have a bidirectional Granger causal relationship with the Malaysian CPO export, while the Malaysian CPO exports are Granger-caused by the world CPO price volatility, world crude oil price, and world soybean oil price. Our findings suggested that macroeconomic policy harmonization on the CPO price and production as well as exchange rate policy should be innovatively designed between Indonesia and Malaysia through the existing Council of Palm Oil Producing Countries (CPOPC) if these counties intend to gain more revenue from their CPO exports in the future.

Keywords: Dynamic causality, World CPO price volatility, World commodity markets, Macroeconomic policy harmonization, International CPO trade

JEL classification: C53, F42, L13, Q17, Q37
read more

TOURISM AND ECONOMIC GROWTH NEXUS IN INDONESIA: THE DYNAMIC PANEL DATA APPROACH

Elvina PRIMAYESA

Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia, Faculty of Economics, Andalas University, Padang, Indonesia

yesa040486@gmail.com

Wahyu WIDODO

Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia

wahyuwid2002@live.undip.ac.id

F.X. SUGIYANTO

Faculty of Economics and Business, Diponegoro University, Semarang, Indonesia

fxsugiyanto09@gmail.com

Abstract

The positive impact of tourism on economic growth is generally influenced by various indicators at both global and national levels. However, the question remains whether tourism encourages economic growth or vice versa. This paper examines the importance of tourism as a conditioning factor for economic growth in Indonesia. The validity of the relationship between tourism and economic growth can be examined by using the dynamic panel data estimation approach and convergence analysis to provide evidence of the impact of tourism on economic growth in Indonesia. In accordance with the initial hypothesis on tourism and economic growth, the result shows that the former can encourage the latter, although there is no indication of convergence among provinces in Indonesia. Therefore, if the supply characteristics of the tourism sector are improved, then it can be considered as an alternative source for stimulating economic growth in Indonesia.

Keywords: Economic Growth, Tourism, Dynamic Panel Data, Convergence

JEL classification: C23, L83, O40, O53
read more

MODELING OF REGIONAL ECONOMIC DEVELOPMENT BASED ON INNOVATIVE CLUSTERS

Dmitry NAPOLSKIKH

Candidate of Economic Sciences, Associate Professor of the Department of Management and Law, Volga State University of Technology, Russia, Yoshkar-Ola

NapolskihDL@yandex.ru

Tatyana V. YALYALIEVA

Candidate of Economic Sciences, Professor of the Department of Management and Law, Volga State, University of Technology, Russia, Yoshkar-Ola

yal05@mail.ru

Abstract

The subject of the research is improvement of methodological tools for modeling economic development based on the formation of innovative clusters of environmental management within the region economic space. The aim of the work is to develop an economic-mathematical model for the formation of innovative clusters, expanding the methodological potential of forecasting and planning territorial development. Special attention is paid to the peculiarities of innovative cluster development process, which determine the initial conditions of the problem of finding the optimal spatial location and long-term development of industrial production in the cluster. The problems of optimization of spatial distribution of new and development of existing industries in the process of implementation of the cluster initiative are considered, approaches to mathematical modeling of formation and development of innovative clusters are generalized. The features of the economic-mathematical model of the formation of innovative cluster of environmental management are identified. The problem of optimizing economic development for territory on the basis of innovation cluster are formulated.

Keywords: economic clustering, innovation clusters, environmental management, optimization of economic development, economic-mathematical model, territorial development, industrial policy, regional economy, old-industrial regions, resource-producing industries, inter-sectoral interaction.

JEL classification: O1, R58
read more