UIN (Universitas Islam Negeri) Sunan Kalijaga, Yogyakarta: E-Journal Fakultas Ekonomi dan Bisnis Islam
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Redefining Poverty and Its Measurement: An Islamic Political Economy Perspectives
Get PDFIslamic economists have always taken the position on the intrinsic capability of poverty alleviation in the Islamic economic model. The poverty, in economics and social sciences, is taken in the context of economic deprivation. Among the multitudinous meanings of poverty, generally it is defined as the lack of income, human underdevelopment, social exclusion, ill being, unsustainable livelihood, lack of basic needs, vulnerability and relative deprivation, while multifarious methodologies like head count ratio, poverty gap ratio, income gap ratio and Sen index are used to measure the poverty. The poverty in the developed countries mostly is identified relative to the average level of income as compared to developing countries which usually define it on the grounds of absolute standard of living. Islamic model clearly addresses poverty in number of ways and even considers it as a threat to faith and recommends alleviating it through different tools like zakat, which is the negative rate of return on savings. The tools prescribed in Islam for counteracting poverty are designed on different conceptual grounds to conventional poverty reduction tools, similarly Islam’s conceptually constructed understanding on: lack of income, human underdevelopment, social exclusion, ill being, unsustainable livelihood, lack of basic needs, vulnerability and relative deprivation differs in its context and in its intrinsic intellectual positioning to the conventional interpretation of these concepts. Inductively therefore, Islam’s idea of, ‘what is poverty?’ and ‘How it can be measured’, is distinct and different to the general perception of poverty. This paper objectively examines the subjective meaning of poverty within Islam, through analysing the intellectual rigour on poverty in the transcendental sources of Islam along with the conceptual construction of Al Ghazali’s work on happiness. It further applies the uniform principles of maqasid al shariah (objectives of Islamic law) and nisab (standard for Zakat to be liable) in an attempt to develop the understanding of monetary measures, which can be used to identify ‘poor and needy’ within an economy. The results should provide the basic argument for the distinction on Islamic concept of poverty and a framework in which such definition can translate into the categorisation of ‘poor’ within an economy; along with some foundational understanding of Islamic value approach on monetary measurement of poverty.
The Influence of Marketing Mix (Product, Price, Place, and Promotion) and Service on Customer’s Decision of Using BSM Saving Products
Get PDFThe purpose of this research is to determine the effect of Marketing Mix (Product, Price, Place, and Promotion) and service to the customer’s decision to use the product “Tabungan BSM” in Bank Syariah Mandiri branch office Kaliurang. The results of this research can be taken into consideration of the bank’s management to evaluate marketing strategies and services applied in the bank. The sample in this research is 112 respondents from customers “Tabungan BSM” in Bank Syariah Mandiri branch office Kaliurang. The sampling technique uses purposive sampling method. This research is a field research with quantitative approach. The data are primary and secondary. Primary data is obtained based on respondent’s answers to a quesionnaire distribution. This research uses multiple regression analysis with the normality test, classical assumption test, descriptive analysis, F test, coefficient of determination test, and hypothesis test (t-test) with processing using SPSS 17.0 for Windows. The data processing results are obtained equation Y = 2,279 + 0,062X1 + 0,246X2 + 0,173X3 + 0,356X4 + 0,157X5 + e. Based on Ftest shows that Fhitung (12,962) > Ftabel (2,300) and the level of significance probability of 0.000 (the level of significance probability) is smaller than 0.05, then the regression model in this reseach can be used and jointly independent variables influence the decision of used “Tabungan BSM”. Based on coefficient determination test is known that Adjusted R2 value is equal to 0.350 or 35%. This means that with five independent variables that include Product, Price, Place, Promotion, and Service can represent 35% of variables which affects the descision variable usage of “Tabungan BSM” by customers of Bank Syariah Mandiri branch office Kaliurang, while the rest (100% - 35% = 65%) is explained by other variables outside the model used. Meanwhile, based on the t-test, it shows that the variables of product, price, Place, and servicedo not affect the customer’s decision to use “Tabungan BSM” in Bank Syariah Mandiri branch office Kaliurang. There is only one variable that is variable Promotion
The Implementation of Good Governance in the Era of Caliphate Omar Ibn Abd al-Aziz (61H-101 H/717-720 M)
Get PDFThe discussions of good governance are being widely debatable all over the world. The world has arrived at an agreement that good governance has major influence for human resource development in the society. The debate is currently, going on all sectors of activities such the social, economic, and political imperatives, cultural sources and traditions. These have contribution to supervise and govern societies, how to manage business enterprises. The purposeof this paper is to investigate and to understand the theory of good governance from both a modern and Islamic perspective. Firstly, this paper is aimed to find out what is the good governance in modern term. Secondly, this paper will try to explore and explain the siyasah shar?iyyah means concerning to good governance on modern societies. Thirdly, explaining and exploring the concept of good governance in the reign of caliph Omar ibn Abd al-Aziz. Italready known that within short time he was able to bring the khilafah to glorious administration. This paper find that it is believed that the concept of good governance already practised by Caliph Omar ibn Aziz throughout his reign. In addition, there are many successes have been achieved by Omar either in the field of economy, politics and national defense and religious fields where the field may be difficult to achieve today\u27s leaders
Global Financial Crisis and Islamic Capital Market Integration among 5-ASEAN Countries
Get PDFIslamic Capital Market is important part of Financial System in ASEAN countries especially in the context of AEC. The objective of this paper is to investigate interconnection long run equilibrium of Islamic Capital Market in ASEAN Countries. Using daily closing price for from September 2007 to October 2012, this study examine five Islamic Capital markets in ASEAN namely Indonesia, Malaysia, Philippines, Singapore and Thailand. This study examines on Integration among these Islamic Capital markets by relies a simple correlation test, Granger causality test and co-integration test using error correction model. This research documents some interesting finding. First, Using Johansen estimation technique, there is co-integration between the considered Islamic indices namely; Indonesia, Malaysia, Philippines, Singapore and Thailand. Second, Since the co-integration exists, granger causality test shows that there is three bi-directional causalities namely; between Malaysia Islamic Capital Market and Singapore Islamic Capital Market; between Thailand Islamic Capital Market and Singapore Islamic Capital Market; and between Singapore Islamic Capital Market and Philippines Islamic Capital Market. However, there is a unidirectional between Indonesia Islamic Market (MCIINA) and Malaysia Islamic Market (MCIMY), MCIINA and Philippines Islamic Market (MCIPhil), MCIINA and Thailand Islamic Market (MCITHAI), it implies that MCIINA affects MCIMY, MCIPhil, and MCIThai but not vice versa. Third, based on VECM suggest that all Islamic indexes are inter-related in the long run that can be explained due to the similarity of structure bring about by its stock as required by shariah in the process stock screening
Revisiting of an Islamic Options Permisibility from Shariah Perspectives
Get PDFThe popularity of derivative instruments especially in managing uncertainty (risk)had become popular after several financial crises that occurred since the Great EconomicDepression. There are various tools have been developed in managing risk such as the Options,Forwards, Futures and Swaps. In addition, these kinds of tools are commonly used by institutional and individual investors. Given this popularity, conventional risk management strategies is completely against from Islamic risk management as Islamic financial market arekeep on growing drastically at Cumulative Average Growth Rate (CAGR) of 15% on yearlybasis (Mckinsey, 2005). This is clearly shows that, Islamic finance development are in line withconventional financial development. Therefore, there is need to maintain consistency in productstructures offered by these two financial markets. The complexity is mainly contributed by thestructures and the design of the products especially on Islamic derivatives tools. Therefore, to get a significant picture of the Islamic risk management tools, this paper will only examines thecontemporary derivative instruments namely; Option and the Islamic viewpoints of thisinstrument . As we know, Islamic finance is governed by Shariah principle and guidelines whichprohibit Riba, Gharar, and Masir etc. Therefore, this paper attempts to explore the validity ofoptions from Islamic and Shariah perspectives by reviewing Islamic scholars opinions on anoptions market
Financial System Stability in Indonesia during The Global Financial Crisis 2007/2008: Conventional vis-à-vis Islamic
Get PDFThis research aims to analyze the financial stability especially in dual banking system in Indonesia and discusses the role of Islamic banks in the financial stability of national banks. In addition, this study also focuses on the analysis of the determinants of financial stability namely on the national banking Industry. This research uses panel data in which combined data between time series and cross section with an observation periods are 2005:1 - 2009:1 by using an internal variable of banks and macroeconomic data. Z-score analysis will be used as main tool analysis regressed with internal variable. Empirical results obtained from this research shows that during the period of 2005:1 - 2009:1 banking financial stability, for both conventional and Islamic and categorized based on an asset scale, the movement of the Z-score value is different. From the Z-score values analysis shows that Islamic banks are the most stable bank with a trend increased sharply when compared with other banks, namely conventional couterparts. If viewed from each category, small conventional banks more stable than small Islamic banks, and there are declining trend in 2005:1 to 2009:1. Whereas for large and middle conventional banks the trend of the Z-score movement are in the same patterns. This study also founds that the determinant of the banking stability can be seen from two sides namely bank\u27s internal factors and macroeconomic factors. Internal factors consist of: Income Diversity (ID), Credit or Financing (Loan), Total Assets (TA), Operational Cost (Cost), Cost Income (CI), Loan Asset (LA), Current Liability (CL), Cash to Current Liabilities (CCL), Capital Bank (MDL). While macroeconomic factors consist of: inflation, BI Rate, Exchange Rate, Composite Index (JCI), the Gross Domestic Product (GDP). This research also examined the extent to which the role of Islamic banks and the global financial crisis to the financial stability of national banking. This analysis shows that the global financial crisis and Islamic banks affect significantly to the financial stability of banking industries in Indonesia
Testing the conditional correlations and volatility spillovers between US and ASEAN Islamic stock markets: A Multivariate GARCH Analysis
Get PDFThis study examines the conditional correlations and volatility spillovers between the US and ASEAN Islamic stock markets. The empirical design uses MSCI (Morgan Stanley Capital International) Islamic indexes as it adopted stringent restriction to include companies in sharia list. By using a three multivariate GARCH models (BEKK, diagonal VECH, and CCC model), we find evidence of returns and volatility spillovers from the US to the ASEAN Islamic stock markets. However, as the estimated time-varying conditional correlations and volatilities indicate there is still a room for diversification benefits, particularly in the single markets. The Islamic MSCI of Thailand, Indonesia, and Singapore are less correlate to the US MSCI Islamic index. The implication is that foreign investors may benefit from the reduction of risk by adding the Islamic stocks in those countries
Business Cycle and The Macroeconomics Performance: Evidence of Malaysia and Indonesia
Get PDFStable economic growth is the major macroeconomic goal which is all nations seek. Economist and policy makers have been tried to find the ways to sustain and maintain stable economic growth. This paper examines the macroeconomic fluctuations and economic growth in Malaysia and Indonesia and its determinant by using multiple regression models. Five variables were chosen for the model namely variables are Money supply (MS), Industrial production (IP), Interest rate (IR), exchange rate (ER), Consumer price Index (CPI) and stock prices. The study shows that Money supply (MS), Interest rate (IR), exchange rate (ER), and stock prices are among others, the determinant factors of macroeconomic fluctuations in both countries. Specifically, the empirical results reveal that Interest rate (IR), exchange rate (ER), and stock prices has significant contribution to the performance of real GDP in Malaysia while Money supply (MS) and exchange rate (ER) are the main cause of macroeconomic fluctuations in Indonesia. This may be due to the different monetary policies pursued by the two countries. The two countries might have different monetary policy strategies; Malaysia pursues interest rate targeting policy, whereas Indonesia applies inflation rate targeting policy.The study recommends for both countries government policies play an important role in economic performance. Therefore, a careful policy should be the foremost important factor for economic in these nations and the every country in general
The Role of Stock Markets in Promoting Economic Growth in Malaysia: Islamic vis-vis Conventional
Get PDFThe purpose of this study is to evaluate the dynamic effects of both Islamic and conventional stock markets development on the economic growth, particularly in Malaysia. The model estimation used to explain the relationship is the autoregressive distributed lag model with the variable of FTSE BM Emas Shariah Index to represent Islamic securities and FTSE BM Composite Index to represent the conventional. The data coverage is from Q1:2000 to Q4:2011. The result shows that there is no evidence of co-integration between the conventional markets and economic growth while there is a co-integration found between Islamic markets and economic growth. Moreover, the relationship between the development of the Islamic stock markets and economic growth occurs to be bidirectional
The Critical Aspect on Fair Value Accounting and its Implication to Islamic Financial Institutions
Get PDFRecently, fair value measurement and its implication in accounting standards have been increasing (Ramanna, 2006). One of the important aspects of financial reporting is measurement (Barth, 2007). Barlev and Haddad (2003) state that the fair value accounting(FVA) paradigm replaced the historical cost accounting (HCA) in the development of accounting standards that FVA is more value relevant that HCA probably did not provide the real financial information and income. However, previously studies mention that fair value accounting suffers from some serious limitations and disadvantages such as issues in market approach, income approach, and cost approach. Al-Yassen and Al-Khadash (2011) argue that accounting standard setters such as the International Accounting Standards Board (IASB) UK and the Financial Accounting Standards Board (FASB) U.S as well as other national accountingstandard setters provide high attention and long-term ambition to use fair value accounting as full measurement in all financial instruments. Islamic Financial Institutions (IFIs) that have different objectives and principles as well as have different financial products with conventional financial institution. This paper tries to explore critical aspects of the fair value accounting andits implications to Islamic Financial Institutions implications. This study concludes that that fair value accounting measurement provides many critical aspects to be implemented to Islamic Financial Institutions (IFIs). Additionally, AAOIFI proposed cash equivalent value as respond to fair value measurement that cash equivalent value when the attribute condition are present such as the relevance, reliability and understandability of the resulting information. Furthermore, fully adopting International Financial Reporting Standards (IFRS) issued by IFRSIASB, there will no specific standards for unique functions of Islamic Financial Institutions. Inaddition, the paper may be recommended to work together among Muslim countries to unity the potential harmonizing one set accounting standards for Islamic Financial Institutions such as AAOIFI?s standards