EFFECT OF INFLATION ON TOTAL DEPOSITS AND FINANCING OF SHARIA COMMERCIAL BANKS: A MONTHLY DATA EVIDENCE FROM INDONESIA

IKHSAN

Senior Lecturer, Faculty of Economics and Business, UniversitasSyiah Kuala, Banda Aceh, Indonesia

ikhsan30303@unsyiah.ac.id

Cut Dian FITRI

Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia

cutdianfitri@ar-raniry.ac.id

Hafiizh MAULANA

Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia

hafiizh.maulana@ar-raniry.ac.id

Khairul AMRI

Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia

khairul.amri@ar-raniry.ac.id

(corresponding author)

Abstract

The main purpose of the paper is to determine the effect of inflation on total deposits and the financing of sharia commercial banks in Indonesia. A monthly time series data over the period of 2012.1-2017.6 was analyzed using Johansen Co-integration test, vector error correction model, and Granger causality test. The co-integration test indicates that there is a long-run relationship between the variables. In the long-run, inflation is negatively related to total deposits and sharia financing. In the short-run, the inflation has no significant effect on the two variables. The sharia financing has a negative effect on itself at the 1 and 2-month period. The result of the Granger causality test points out that there is a bidirectional causality relationship between total deposits and sharia financing. Furthermore, unidirectional causality running from the inflation to sharia financing and from total deposits to the inflation.

Keywords: Inflation, Total Deposits, Sharia Financing, VECM, and Granger Causality Test

JEL classification: E31, E51, G21, N15

read more

DOES GOODS AND SERVICES SPENDINGS REDUCE INCOME INEQUALITY? A PANEL DATA EVIDENCE FROM INDONESIA

B. S. NAZAMUDDIN

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

nazamuddin@unsyiah.ac.id

Khairul AMRI

Lecturer, Faculty of Islamic Economics and Business, Universitas Islam Negeri Ar-raniry, Banda Aceh, Indonesia

khairul.amri@ar-raniry.ac.id

(corresponding author)

Abstract

The main purposes of our study are to investigate the effect of goods & services spending (GSS) and social spending (SS) on income inequality (GR). Using a panel data set of 26 provinces in Indonesia from 2005 to 2015, panel vector autoregressive and Granger causality test are employed to explore the causal relationship of the variables. The study found out that the SS has a negative and significant effect on GR at the 2-period horizon. The GR has a positive and significant effect on the GSS at the 4-period horizon, but negative and significant effects at the 3-period horizon. The result of the Granger causality test indicates that there is a unidirectional causality running from GSS to SS, and bidirectional causality exists between GR and SS, and between GR and GSS.

Keywords: Income inequality, goods and services spendings, social spendings, Panel Vector Autoregressive, and Granger Causality test.

JEL classification: D33, H53, I38

read more

CHANGES IN HUMAN GEOGRAPHY: SCENARIOS OF COUNTER-URBANIZATION IN THE CONTEXT OF ECONOMIC CRISIS

Evgenia ANASTASIOU

Postdoctoral Researcher, University of Thessaly

evanastasiou@uth.gr

Abstract

The last decade economic developments affected to a large extend the demographic structure of Greece. The period 2001-2011 is characterized by a net slowdown of the intense urbanization trend, while in the context of crisis there have been identified counter-urban trends, revealing new attractiveness zones in the rural areas. These indications of mobility do not concern entirely the countryside as the newcomers settle only in specific rural spatial units. At the same time these areas have specific features that facilitate the establishment of a new population, such as population dynamics, tourism development, agricultural activity, services and structures, reduction of geographical isolation, low cost of living and habitation. The future of internal migration in Greece heavily depends on existing trends as well as future economic, social and political developments. Though, the lack of official data for the period after 2011 constrains our understanding for the development of internal migration and particularly counter-urban trends in Greece. The present paper raises the issue of the prospects of the establishment of the Greek population in the countryside, taking into account the pull factors of rural areas. Through Foresight and Strategic Thinking Methods, a longer-term framework is being developed to reflect the potential strategic choices of the internal migrants. This approach is based on a mainly qualitative analysis, scenario planning, in order to present the prerequisites for the further development of such a type of mobility.

Keywords: foresight, scenario planning, internal migration, population, countryside

JEL classification: J1, J6, J11, R23

read more