ETIKONOMI
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Taxation and Income Inequality in ASEAN Countries
No full textResearch Originality: This study contributes to literature by investigating the impact of taxation on income inequality, with a specific focus on Southeast Asian countries.Research Objectives: To investigate the impact of taxation on income inequality in Association of Southeast Asian Nations (ASEAN) countries.Research Methods: A panel data model focusing on ASEAN from 1998 to 2021 was used, and a two-stage least squares (2SLS) estimation method, incorporating fixed effects and instrumental variables was used. Tax instrument comprised two components, namely tax ratio, reflecting volume of tax; and tax structure, representing direct, indirect, and income taxes.Empirical Results: The results showed that tax ratio, direct tax, and income tax reduced income inequality in Southeast Asia. However, the magnitude of the impact should be more significant. Prioritizing education and improving the quality of workforce could effectively reduce income inequality, as shown by Singapore\u27s success in this area.Implications: This study had significant implications for ASEAN policymakers, as it offered valuable insights into designing and implementing taxation policies to reduce income inequality and promote economic development across the region. JEL Classification: D63, H20, H23How to Cite:Alexander, A., Gitaharie, B. Y. (2024). Taxation and Income Inequality in ASEAN Countries. Etikonomi, 23(1), 397 – 414. https://doi.org/10.15408/etk.v23i2.32352
Risk Transmission of Foreign Subsidiary in ASEAN Emerging Countries
No full textResearch Originality: To the best of our knowledge, this study is the first to investigate the impact of home country parent bank risks on destination country subsidiaries in an ASEAN setting. Moreover, this study adds to the previous literature by using the post-global financial crisis period in ASEAN countries, various types of risks, and dynamic panel data.Research Objectives: This study aims to examine the association between parent and foreign subsidiary banks. The study also examines how bank regulation, national governance, and financial deepening in host countries affect the association.Research Methods: This study uses dynamic panel data of 43 foreign banks operating in ASEAN emerging countries during the period 2010-2018.Empirical Results: The findings indicate a significantly positive association between parent and subsidiary bank risk, particularly for credit and liquidity risks. National governance and bank regulation mitigate the risk transmission. In contrast, financial deepening amplifies the transmission of risks between parent and subsidiary banks.Implications: This finding has important implications, in terms of policy interventions and regulatory mechanisms that national governments can deploy to lower risk exposure of subsidiary banks, while at the same time encouraging foreign investments into the financial services sectors in ASEAN countries.JEL Classification: F30, G21, G32How to Cite:Karyani, E., & Agusman. (2024). Risk Transmission of Foreign Subsidiary: Evidence from ASEAN Emerging Countries. Etikonomi, 23(1), 129 – 146. https://doi.org/10.15408/etk.v23i1.32703
Islamic and Conventional Banks Stability in Indonesia
No full textResearch Originality: The stability of banking institutions is crucial for the overall financial health of a country. The originality of this paper lies in its innovative use of quantile regression analysis to provide a nuanced understanding of the factors influencing bank stability, particularly in the Indonesian context.Research Objectives: This research identifies factors influencing bank stability in Islamic and conventional banks in Indonesia.Research Methods: Utilizing quantile regression analysis to measure the impact of various factors at different quantiles, addressing the existing mixed findings in the literature. This study utilizes 15 years of data, encompassing 61 observations for Islamic banks and 779 observations for conventional banks in Indonesia.Empirical Results: The study identifies impaired loans as the primary determinant of bank stability in Indonesia, with a notably greater impact on conventional banks compared to Islamic banks. Notably, the upper quantile of Islamic banks indicates a decline or a lesser impact on bank stability. The paper additionally concludes that the stability of Islamic banks in Indonesia is comparatively lower than conventional banks.Implications: By offering insights into the different levels of factors affecting bank stability, the study contributes to the existing literature, sheds light on unique dynamics, and highlights potential recommendations for enhancing bank stability, especially in the context of non-performing loans.JEL Classification: C21, C23, G21How to Cite:Khan, S., Aziza, N. A., & Nawaz, A. D. (2024). Islamic and Conventional Banks Stability in Indonesia. Etikonomi, 23(1), 167 – 182. https://doi.org/10.15408/etk.v23i1.33879
Millennial’s Decision on the Use of Online Halal Marketplace in Indonesia
No full textThis study aims to analyze the Millennials\u27 behavior influenceon their decision to use an online halal marketplace inIndonesia, which is mediated by their perception as anintervening variable. A probability sampling technique withconvenience sampling was used to calculate 100 from 125collected primary data sets. The SEM-PLS statistical techniquewas used to analyze the relationships among variables. Thefindings showed that only technology adoption, opinions,broader activities, and Millennials’ perception influenced theirdecisions to use the online Halal marketplace, while success& status, personal health, and brand value & reward didnot. Millennials’ perception is not an intervening variablefor all indirect effects. It implies that Millennials consideronline Halal marketplace has not been addressed to reservethe Muslim concerns, and their decision to use it didnot necessarily derive from religious reasons. Online Halalmarketplaces must combine more suitable marketing strategiesto increase customer engagement with the Islamic brand byconsistently delivering reliable Halal products and servicesto meet Millennials\u27 needs while penetrating this segment.JEL Classification: M31, M37, L92How to Cite:Aisyah, M. (2023). Millennial’s Decision on the Use of Online Halal Marketplace in Indonesia. Etikonomi, 22(2), 293 – 320. https://doi.org/10.15408/etk.v22i2.34353
The Co-Movement Between Commodity Prices and the Economic Growth of Malaysia
No full textAbstractResearch Originality: This research is an initial attempt to unveil the structure of the dynamic relationship between commodity prices and the economic growth of Malaysia at various frequencies and moments in time.Research Objectives: This paper investigates the co-movement and lead-lag relationship between commodity prices and the economic growth of Malaysia at different frequencies and moments in time. Research Methods: The relationship between the variables is studied based on monthly data from 2015 to 2022 using the time-frequency analysis of Continuous Wavelet Transformation model. This method analyses the direction and lead-lag relationship between two time series to determine which variables are leading and the direction of their co-movement. Empirical Result: The relationships between commodity prices and economic growth are varied depending on frequency and moments in time. In the short run, most commodity prices exhibit an inverse relationship led by economic growth. Meanwhile, a positive co-movement with economic growth is indicated for most commodity prices in the medium run. These variables mostly move in unison, except for rubber and palm oil, which led the relationship. Nevertheless, the co-movement of commodity prices and economic growth showed a diminishing magnitude in the long run.Implications: Malaysia\u27s policy frameworks should consider the economic dynamic responses towards commodity prices in facilitating its economic growth. In addition, efforts should be made to diversify economic activities, reducing the level of dependence on commodities in the country’s trade basket.JEL Classification: Q32, O44, O11How to Cite:Pinjaman, S., Taasim, S.I., Yun, W.S., & Yassin, J. (202x). The Co-Movement Between Commodity Prices and the Economic Growth of Malaysia. Etikonomi, 23(1), 11 – 26. https://doi.org/10.15408/etk.v23i1.34368
Factors Determining Indonesian Muslim Behaviour in Purchasing Halal Food: A Preliminary Study
No full textHalal food and consumer behaviour are hot issues in scholarly publications. However, research exploring the factors determining consumer decisions by the exploratory study is still rare. Therefore, this study aimed to identify the factors that determine Indonesian Muslims\u27 purchasing of halal food. We focused on halal food Muslim consumers and 140 questionnaires were distributed. Exploratory Factor Analysis and Confirmatory Factor Analysis was used for data analysis. The findings showed that three main factors determine Muslim purchase decisions for halal food: halal awareness, religiosity, and the safety & quality of halal food. A novel model of halal food consumer behaviour that implies the application of Halalan-tayyibah in Islamic teachings, namely the integration of halalness with product safety and quality. The study also implies that business players must pay attention to halal aspects in all business processes, from manufacturing to marketing, for the halal food value chain to be fully fulfilled.JEL Classification: M21, M31, Z12How to Cite:Alimusa, L.O., Septiani M, A., Ratnasari, R. T., & Hasan, A. (2023). Factors Determining Indonesian Muslim Behavior in Purchasing Halal Food: A Preliminary Study. Etikonomi, 22(2), 263 – 276. https://doi.org/10.15408/etk.v22i2.26979
Customer Perceived Value in Ethnic Japanese Restaurants: Which Factors are Considered?
No full textEthnic restaurants are currently a fascinating topic, as they promote specific ethnic cultures and provide customers with a chance to try something new and different. Ethnic restaurants often offer flavours that are truly representative of a certain culture. This research investigates the factors that influence customer perceived value in Japanese ethnic restaurants. Data were collected through an online survey completed by customers who had visited a Japanese ethnic restaurant, Marugame Udon, in Indonesia. The Structural Equation Model (SEM) was applied to test the hypotheses. The findings of this study demonstrate that food quality, employee service quality, and price fairness positively affect customers’ perceived value. In contrast, the dining atmospheric quality and restaurant authenticity do not affect customers\u27 perceived value. Studies on customer perceived value in ethnic Japanese restaurants are still incredibly rare in the literature., especially in Indonesia and Malaysia. Thus, this study aims to fill that gap, providing valuable insights for future research and restaurant management.JEL Classification: M10, M11, M21How to Cite:Urdianti, D., Qamari, I.N., & Hasan, W. H. W. (2023). Customer Perceived Value in Ethnic Japanese Restaurant: Which Factors are Considered? Etikonomi, 22(2), 457 – 472. https://doi.org/10.15408/etk.v22i1.30641
Impact of Raw Material Export Restrictions on Employment: Evidence from Panel Data
No full textThe extractive industry typically contributes limited direct employment in host countries, prompting some nations to consider export restrictions on raw materials to enhance domestic job opportunities. However, scholarly opinions on the efficacy of these policies vary widely. This study addresses this gap by utilizing an extensive dataset spanning over a decade and encompassing diverse countries. Employing a fixed-effect Ordinary Least Square (OLS) regression model with panel data from 74 countries from 2009 to 2021, this paper shows that raw material export restrictions do not affect employment rates. This fact challenges the prevailing notion that export restrictions inherently boost domestic employment. Consequently, a more comprehensive strategy, including economic diversification, technological investment, and alternative job creation measures alongside export controls, is essential to effectively address employment challenges within the extractive sector. JEL Classification: F1, J2, O1How to Cite:Setiono, D. (2023). Impact of Raw Material Export Restrictions on Employment: Evidence from Panel Data. Etikonomi, 22(2), 483 – 494. https://doi.org/10.15408/etk.v22i1.32172
Human and Social Capital as Antecedents of Spiritual Capital on MSME Innovation
No full textResearch Originality: The originality of this paper lies in its inclusion of the mediating role of human capital and social capital in the connection between spiritual capital and MSME innovation capability.Research Objectives: This study examined how Innovation in MSMEs by using antecedents of their spiritual capital, human capital, and social capital.Research Methods: This study using sample from MSME operators and owners located in the western part of Central Java Province. The analysis conducted in this study was using Structural Equation Model.Empirical Results: The results found that spiritual capital, human capital, and social capital has a significant positive effect on innovation capability. In addition, human capital and social capital can mediate the relationship between spiritual capital and innovation capability.Implications: From the results of this study, it can be implied that spiritual capital, human capital, and social capital is very important for MSMEs managers and owners to create innovation to make value-added for their business. Therefore, MSMEs should concern on the management of those capitals.JEL Classification: E31, F31, C22How to Cite:Pratama, B. C., Kamaluddin, A., Fitriati, A., Saad, S., Innayah, M. N., & Hambali, S. S. (2024). Human and Social Capital as Antecedents of Spiritual Capital on MSME Innovation. Etikonomi, 23(2), 238 – 396. https://doi.org/10.15408/etk.v23i2.32201.
Exploring a Consumption Value Model for Islamic Halal Cosmetics
No full textResearch Originality: Halal cosmetics segmentation requires detailed analysis to enable stakeholders from the industry sector to optimize marketing and sales. The findings of this study are interesting, the market opportunity specifically for women is not only in consumption volume but also production, especially with market segmentation among millennials and Gen Z.Research Objectives: This research aims to determine the simultaneous and partial effects of halal labeling, product quality, religiosity, and online consumer reviews on purchasing decisions regarding halal cosmetic products among female and male consumersResearch Methods: This research employed an online survey method with 203 respondents. It also employed the SEM-PLS to evaluate models and validate hypotheses, and Multi-Group Analysis (MGA), which is employed to determine the gender effect\u27s position on the hypotheses.Empirical Results: The results with the SEM-PLS method show that product quality, online consumer reviews, and religiosity satisfactorily influence purchasing decisions, this is not the case with the halal label. It seems that online consumer reviews are more suitable for male consumers. Appearance and persuasive factors are more important for male consumers who value rational factors compared to female consumers.Implications: The findings of this research are significant due to the comparison drawn between male and female consumers. Such a comparison aids practitioners and business professionals in effectively delineating market demands and preferences. When developing halal cosmetic products, manufacturers must consider not only the product\u27s sales potential but also its efficacy and potential side effects upon usage.JEL Classification: M5, M10, M21How to Cite:Yudha, A.T.R.C., Zidna, R.R & Febriyanti, N. (2024). Exploring a Consumption Value Model for Halal Cosmetics. Etikonomi, 23(2), 465 – 480. https://doi.org/10.15408/etk.v23i2.36080