ETIKONOMI
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Drivers of Cryptocurrency Adoption in Iran: Evidence from the Baluchistan Region
No full textResearch Originality: This study explores the key factors influencing the acceptance of cryptocurrencies in Iran, focusing on the under-researched Baluchistan region. In contrast to previous studies focusing on developed or technologically advanced economies, this research explores a socioeconomically disadvantaged region experiencing economic instability and restricted access to formal financial services.
Research Objectives: The main goal of the study is to identify and analyze the key factors influencing cryptocurrency acceptance in this region.
Research Methods: Using data from 200 active cryptocurrency users, we employed exploratory factor analysis followed by multiple regression analysis to identify and test predictive factors.
Empirical Results: The findings reveal six primary drivers: financial constraints, national economic volatility, personality traits, social influences, managerial factors, and trust. Among these, income-related motivations and macroeconomic instability emerged as the strongest predictors of adoption.
Implications: The study contributes to the literature by contextualizing cryptocurrency behavior within a developing country’s marginalized setting and provides insights for policymakers to enhance financial inclusion. It also highlights the need for regulatory clarity and user education to support safe and effective participation in digital finance.
JEL Classification: G1, G4, G10, G4
Does Covid-19 Change The Stock Market Relationship With Interest-Exchange Rate?
No full textResearch Originality: Despite numerous studies conducted on similar topics, this study uniquely examines the short- and long-run dynamics of the interest rate, exchange rate, and stock prices in China under two distinct epochs: pre- and Covid-19 periods.
Research Objectives: This study compares the impact of interest and exchange rates on the Chinese stock market during the COVID-19 and pre-COVID-19 periods. Furthermore, the study also investigated the speed of adjustment towards equilibrium following short-run shocks in the stock market.
Research Method: This study employs monthly data on the Chinese stock market and the autoregressive distributed lag model-error correction model (ARDL-ECM) approach on a separate period.
Empirical Results: On COVID-19, the interest rate and exchange rate are not jointly and individually cointegrated significantly in explaining the stock prices. Nevertheless, the short-run relationship is identified as significant for both variables. Meanwhile, during COVID-19, the variables are jointly significant, with the exchange rate also identified to explain the stock market movement in the long run individually. In the short run, despite the greater impact of the exchange rate, the interest rates have a hysteretic impact.
Implications: The findings suggested that policymakers should leverage the exchange rate instrument as a better predictive tool in devising effective future policy-making.
JEL Classification: C320, G11, G1
The Impact of Banking Competition on Bank Financial Stability: Evidence from ASEAN 5 Countries
No full textIn the era of the global economy, increasing banking competition will encourage an increase in banking transactions and activities. Banking transactions and activities will affect a country\u27s financial stability. The purpose is to obtain the nonlinear effect of banking competition on financial stability at a specific regime. Previous research assumed that this impact applies to every economic regime. The impact of banking competition on financial stability can change at certain regime levels. Nonlinear impact occurs according to the regime. The method is based on a nonlinear threshold regression model. The researchers obtained the data from five ASEAN countries. The findings of this research are in-depth information about the financial system stability model. Analysis of the effect of variance supports the inconsistency of the effects found by several previous researchers. Practical implications are aimed at policymakers to make different decisions at the GDP level, CAR and Liquidity. The economic regime in each country is different, so this analysis is constructive for policymakers to see the conditions of banking competition and financial system stability at a certain regime level. The originality article systematically offers an analysis that assumes the effect can change at a certain regime level.JEL Classification: E5, G15, G01, G32, C24How to Cite:Ekananda, M. (2023). The Impact of Banking Competition on Bank Financial Stability: Evidence from ASEAN 5 Countries. Etikonomi, 22(2), 409 – 428. https://doi.org/10.15408/etk.v22i2.31003
Competition Dynamics of Market Share for Assets in the Banking Industry Using the Lotka-Volterra Model Approach
No full textResearch Originality: Competition in the banking sector is unavoidable. Such competition is present among state-owned banks in Indonesia. In contrast to the previous studies that did not include the competition type and its stability, this study includes the competition type and its stability in the estimation.Research Objectives: This study aims to discover the competition type and its stability, and to forecast the market share among the four state-owned banks.Research Methods: Using market share data of assets published annually by each of the banks from 2010 to 2023, the study employs the Lotka-Volterra model approach to analyze the competition type and its stability that occur among the four state-owned banks.Empirical Results: The study discovers that the competition types of the four state-owned banks vary. There have been three competition types among the four state-owned banks: mutualism, predator-prey and pure competition. Besides, the stability property of the four state-owned banks tended to be unstable. By looking at the gains of market share for assets, only Mandiri’s market share gains will increase in the 2024-2028 period. As a result, the total market share gains for the four state-owned banks declined sequentially.Implications:This research holds significance for four state-owned banks in Indonesia as it provides valuable insights into considering the three competition types (mutualism, pure competition and predator-prey) as the primary key to achieving a significant market share value.JEL Classification: C61, D41, E17, G21How to Cite:Jamal, S. W., Suparno., Rashid, U. K., & Fauziah, F. (2024). Competition Dynamics of Market Share for Assets in the Banking Industry Using the Lotka-Volterra Model Approach. Etikonomi, 23(2), 299 – 316. https://doi.org/10.15408/etk.v23i2.32226
Intentions to Consume Sustainable Fashion Products in Indonesia: Does Religiosity Affect ?
No full textReligiosity is expected to be a positive driving factor of consumption demand for environmentally friendly fashion products. However, few studies have been found that focus on consumer behavior in purchasing sustainable fashion, and none use religiosity as an explanatory variable. This study, therefore, is the first to analyze the effect of religiosity on the intention to consume sustainable fashion products. This study used a quantitative approach with the Structural Equation Modelling (SEM) analysis method and involved 522 respondents in Indonesia. By adopting the theory of planned behavior model, the study results show that religiosity significantly positively affects purchase intentions of sustainable fashion products through the variables\u27 attitude towards behavior and perceived behavioral control. At the same time, the green thinking variable also has a positive impact, but altruism is irrelevant to sustainable fashion consumption. These results indicate that if the consumer is religious, this can lead to a better environmentally friendly attitude and result in a tendency to consume sustainable fashion products.JEL Classification: D12, D90, Z12How to Cite:Nurzaman, M. S., & Herdiani, E. (2023). Intentions to Consume Sustainable Fashion Products in Indonesia: Does Religiosity Affect? Etikonomi, 22(2), 277 – 292. https://doi.org/10.15408/etk.v22i2.34281
Challenges in Embracing Green Supply Chain in Morocco\u27s Auto Industry
No full textAs global environmental awareness grows, businesses are increasingly pressured to integrate environmentally responsible practices into their supply chains. However, the automotive industry in Morocco needs to be faster to embrace Green Supply Chain Management (GSCM). This research applies the rigorous Analytic Hierarchy Process (AHP) approach and polls industry specialists to evaluate and prioritize the most significant barriers to broad GSCM deployment in the automobile industry. The results show that financial hurdles are the most difficult to overcome, whereas technical and infrastructure hurdles are less than others. This ground-breaking study provides important insights into the barriers to GSCM implementation in Morocco\u27s automotive industry. These results could motivate governments, business leaders, and academics to create concrete plans to address the challenges highlighted here. The primary goal of this study is to promote environmental stewardship and drive corporate growth in Morocco\u27s automotive sector by adopting of green supply chain techniques.JEL Classification: E31, F31, C22How to Cite:Fatih, F. Z., & Zhang, L. (2023). Challenges in Embracing Green Supply Chain in Morocco’s Auto Industry. Etikonomi, 22(2), 473 – 482. https://doi.org/10.15408/etk.v22i1.31300
Trust and Risk: Evidence from Rural Banks in Emerging Market
No full textResearch Originality: This research is the first to discuss how rural bank risk-taking behaviour is affected by trust in particular when the poverty rate is high.Research Objectives: This research aims to investigate how risk in rural banks is shaped by the two dimensions of trust by taking into account different poverty levels across the regionResearch Methods: To thoroughly conduct our research, we use quarterly dataset of rural banks obtained from Otoritas Jasa Keuangan (OJK) for the period of 2010Q2 to 2016Q3 when the bail-out regime was still in effect. We employ a random effect model to account for individual heterogeneity.Empirical Result: Our evidence suggests that in-group trust is detrimental to rural banks’ risk. Conversely, out-group trust positively affects rural banks’ stability only if the region has a lower poverty level.Implications: To reduce risk, the rural bank has to use social capital and penetrate informally to the market where in-group trust is high to be able to compete with informal lending and to contribute better to society.JEL Classification: G21, G28, G32How to Cite:Trinugroho, I., Achsanta, A. F., Arifin, T., & Saputro, N. (2024). Trust and Risk Evidence from Rural Banks in Emerging Markets. Etikonomi, 23(2), 287 – 298. https://doi.org/10.15408/etk.v23i2.3577
Measuring Procyclicality Behavior on Islamic and Conventional Banks in Indonesia
No full textResearch Originality: This study contributes to capturing credit cycle movements during the COVID-19 pandemic and compares sizes of credit and business cycles to promote banking stability.Research Objectives: This study attempts to examine banking behavior on amplitude and frequency indicators by focusing on the credit property of Islamic and conventional banks from 2014 to 2020.Research Methods: Ordinary Least Square, frequency base filter and turning point analysis are used.Empirical Results: This study unveiled that the size of an Islamic bank’s amplitude was higher than conventional bank’s amplitude. Meanwhile, the size of the frequency of Islamic banks had a longer frequency than conventional banks, given Islamic banks rely on real sector-based financing which has a longer period of economic expansion.Implications: It is also argued that conventional banks have a riskier leverage indicated by a higher percentage of amplitude. Thus, it is recommended to Indonesian banking sectors to promote the growth of Islamic banks to achieve financial stability. This research is significance in showing the Islamic banking’s contribution on stability given Indonesia is taking serious effort becoming the epicentrum of Islamic finance growth in the world.JEL Classification: E51, G01, G21How to Cite:Wiranatakusuma, D. B., & Muttaqin, E. I. (2024). Measuring Procyclicality Behavior on Islamic and Conventional Banks in Indonesia. Etikonomi, 23(1), 249 – 270. https://doi.org/10.15408/etk.v23i1.35293
Is Social Capital Determinant in Developing Islamic Microfinance Institutions?
No full textResearch Originality: One of the Islamic Microfinance Institutions (IMFI) was Baitul mal wa Tanwil (BMT) which generally has a program using the group loan methodology which is seen as utilizing existing social capital, manifested in personal relationships and networks.Research Objectives: This study aims to examine the impact of social capital factors on BMT business as an IMFI covering cultural values, religious traditions, people\u27s world views, geographical characteristics, work ethic, institutions, and social networks.Research Methods: This study uses a mixed method explanatory with a qualitative method for testing the level of importance using the Analytic Process Hierarchy (AHP) f or the best priority in social capital factors and the ideal IMFI based on expert opinions as facilitators.Empirical Result: This result shows that the seven social capital factors at IMFI can be applied and considered applicable in developing business. The main priority factors are institutions and religious traditions. The IMFI that consistently applies social capital factors in developing IMFI business is BMT Bringhardjo (Yogyakarta) although it has not yet reached the maximum value. The determinants of social capital in the IMFIs business are considerably used to determine the IMFIs business development. It provides that the seven social capital factors at IMFI can be applied and considered applicable in developing business.Implications: The main priority factors are institutions and religious traditions. Investigating one of the IMFI was Baitul mal wa Tanwil that consistently applies social capital factors in developing IMFI business as a business that empowers social capital as a guarantee feasibility and business feasibility from micro communities that have so far been un-bankable. JEL Classification: D02, D04, O14How to Cite:Subchi, I., Jahar, A. S., & Prasetyowati, R. A.. (2024). Is Social Capital Determinant in Developing Islamic Microfinance Institutions. Etikonomi, 23(1), 233 – 248. https://doi.org/10.15408/etk.v23i1.31769
The Intention of Young Muslim Generation to Use the Islamic E-Wallet Services in Indonesia
No full textResearch Originality: Technological developments have changed human behavior in economic activities, including payment methods that use e-wallets. On the other hand, consumers also need an e-wallet that complies with Sharia principles. The COVID-19 pandemic forced consumers to use digital payment methods. However, the number of studies related to the continued usage of Islamic e-wallets in Indonesia remains limited.Research Objectives: Hence, our study examines the factors influencing a person\u27s intention to use an Islamic e-wallet.Research Method: The theoretical framework used in this study is the Technology Acceptance Model. The analysis technique employed is multiple regression analysis using 371 respondents.Result: Empirical results indicate that the factors influencing a person\u27s intention to use an Islamic e-wallet are usability, ease of use, trustworthiness, and religiosity. However, the risk variable does not significantly affect a person\u27s intention to use an Islamic e-wallet. Implication: These results imply that companies must improve the features and services of Islamic e-wallet applications.JEL Classification: D10, G29How to Cite:Risza, H. (2024). The Intention of Young Muslim Generation Using the Islamic E-wallet Services in Indonesia. Etikonomi, 23(1), 219 – 232. https://doi.org/10.15408/etk.v23i1.37452