Tag: O49

SMEs’ CREDIT DEMAND AND ECONOMIC GROWTH IN INDONESIA

M. Shabri ABD. MAJID

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

mshabri@unsyiah.ac.id

HAMDANI

Financial Consultant for the SMEs and Bank’s Partner, Aceh Province, Indonesia, Graduate Student in Economics, Faculty of Economics and Business, Syiah Kuala Kuala University, Indonesia

hamdani.aceh@gmail.com

Muhammad NASIR

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

nasirmsi@yahoo.com

FAISAL

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

faisal_nurmala@yahoo.com

Abstract

This study aims at empirically exploring the short- and long-run relationships between economic growth, non-performing loans, interest rates and the credit demand by the small and medium enterprises (SMEs) in Aceh province, Indonesia. The quarterly data for the period 1995 to 2015 were analyzed by the cointegration and vector error correction model (VECM). The study documented that there was a cointegration among the economic growth, non-performing loans, interest rates and the credit demand, implying the existence of long-run equilibrium among the variables. In addition, in short-run, the study found a unidirectional causality from economic growth to credit demand, a bidirectional causality between interest rates and credit demand, while no causality existed between non-performance loan and credit demand by the SMEs in Aceh, Indonesia. Thus, to enhance the SMEs, the government should focus on promoting the economic growth by managing the stability of interest rates in the province.

Keywords: Credit demand, Economic growth, Non-performing loan, SMEs.

JEL classification: C22, E59, O49, H81
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TOURISM DEMAND AND TAX RELATIONSHIP IN ISLAMIC REGIONS

Majid FESHARI

Assistant Professor of Kharazmi University province, Iran.
majid.feshari@gmail.com

Ali AKBAR TAGHIPOUR

Assistant Professor of Damghan University
taghipour.a9@gmail.com

Mojtaba VALIBEIGI

Assistant Professor of Buein Zahra Technical University, Buein Zahra city, Qazvin province, Iran.
M.valibeigi@bzte.ac.ir
Mojtaba.valibeigi@gmail.com

Abstract

The relationship between tax and tourism receipts is one of the crucial issues in tourism literature and has been considered empirically in recent years.  For this purpose, the main objective of this paper is to determine the long-run relationship between tax ratio to GDP and tourism receipts in OIC selected countries during the 1990-2014. The econometric model for these countries has been estimated by applying dynamic OLS approach. The main findings of this study reveal that tax ratio has negative effect on the tourism receipts and GDP per capita and its growth have positive and significant effect on the tourism receipts in Islamic selected countries. Hence, the main policy implication of this paper is that the tourism managers in these countries should adopts policies to improve the tax revenue through the increase of product capacity. Moreover, the increasing of GDP per capita can improve the tourism receipts in these countries.

Keywords: Tourism, Taxation, Tax Incentives, GDP Per Capita, DOLS Approach

JEL classification: C23, L83, O49