The domestic resource gap and current transaction deficit in Indonesia in 2010-2014
-
Author(s)Anhulaila M. Palampanga ,Bakri HasanuddinLink to ORCID Index: https://orcid.org/0000-0002-2830-911X
-
DOIhttp://dx.doi.org/10.21511/imfi.14(1-1).2017.13
-
Article InfoVolume 14 2017, Issue #1 (cont.), pp. 263-267
- Cited by
- 1248 Views
-
1233 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The purpose of this study is to determine the relationship between domestic financial resource gaps and current account balance in Indonesia by using data from 2010 to 2014. Gaps in the domestic economy are classified into three types: 1) the domestic absorptive capacity of the national income gap (GNP), 2) gross national savings and investment gap, 3) private sector gap (private saving minus private investment), and public sector gap (tax minus government spending). By using a concept of open economy that is described in a theoretical framework, the study results show that: 1) the gap absorption of domestic and GNP, 2) the gap between gross national saving and gross national investments, 3) the gap in private sector and government sector resulting in deficit in the current account during Indonesia on 2010-2014 periods.
- Keywords
-
JEL Classification (Paper profile tab)E2
-
References11
-
Tables3
-
Figures0
-
- Table 1. National income, domestic absorption, and indonesian current account balance, 2010-2014 (billion rupiah)
- Table 2.The gross national savings, gross national investments and Indonesian current account balance, 2010-2014 (billion rupiah)
- Table 3. Private savings, private investments, tax, expenditures and current account balance in Indonesia in 2010-2014 (billion rupiahs)
-
- BPS Indonesia. (2015). Statistik Indonesia, Badan Pusat Statistik Indonesia, Jakarta.
- BPS Indonesia. (2014). Statistik Indonesia Statistc Yearbook of Indonesia, Badan Pusat Statistik Indonesia, Jakarta.
- BPS Indonesia. (2014). Laporan Neraca Pembayaran Indonesia, Bank Indonesia, Jakarta.
- Cavallo, Michele. (2005, February). Government Consumption Expenditures and The Current Account. Working Paper Series, Federal Reserve Bank Of San Francisco.
- Erdogan, Seyfettin. (2014). The Relationship between the Budget Deficit and Current Account Deficit in Turkey. Emerging Market Journal, University Pittsburgh Press.
- Jhingan, M.L. (2013). Ekonomi Pembangunan dan Perencanaan, PT Raja Grafindo Persada, Jakarta.
- Merza, Ebrahim. (2012, April). The Relationship Between Current Account and Government Budget Balance: The Case of Kuwait. International Journal of Humanities and Social Science, USA.
- Nafsiger, Wayne, E. (1997). The Economics of Developing Countries. Prentice-Hall, Inc., New Jersey.
- Tuck Cheong Tang. (2013). Twin Deficits: An Alternative Framework From General Equilibrium Perspective With U.U. Results, Discussion Paper 41/13, Department of Economics, Business and Economics Monash University.
- Van Bon, Nguyen. (2014). Current Account and Fiscal Deficits Evidence of Twin Divergence from Selected Developing Economies of Asia. Southeast Asian Journal of Economics, 2(2), 33-48.
- Widodo, Susena, T. (Januari, 1990). Indikator Ekonomi Dasar Perhitungan Perekonomian Indonesia. Penerbit Kanisius, Yoyakarta.
-
Do Islamic banks contribute to growth of the economy? Evidence from United Arab Emirates (UAE)
Mosab I. Tabash ,
Suhaib Anagreh
doi: http://dx.doi.org/10.21511/bbs.12(1-1).2017.03
Banks and Bank Systems Volume 12, 2017 Issue #1 (cont.) pp. 113-118 Views: 2702 Downloads: 1349 TO CITE АНОТАЦІЯIslamic finance has grown rapidly in the recent years particularly in the Middle East and the world. It receives a great attention of bankers and financial scholars due to its stability during financial shocks and crises. The paper uses empirical analysis to test the role of Islamic banking in enhancing the economic growth of United Arab Emirates (UAE). Gross Domestic Product (GDP), Gross formation (GF), and Foreign Direct Investment (FDI) are used as representatives for economic growth, while Islamic banks’ investments are used as a representative for Islamic financial sector in the UAE. The study uses time series techniques to test the link between the variables. In the current study, co-integration along with error correction models is utilized. All econometric work is done using Eviews. The findings reveal that the causal relationship between Islamic banks’ investments and economic growth of UAE is supply-leading direction. Furthermore, the findings depict that Islamic investments have contributed in increasing investments and in bringing FDI into the country in the long-term. The study also shows that there is two-way association between Islamic banks’ investments and FDI. It shows that FDI supports Islamic banking and Islamic banking brings FDI. The paper concludes that authorities of the UAE should devote more attention for this growing banking sector by facilitating regulations for establishing new Islamic banks and then creating a suitable environment for their growth and progress in the UAE.
-
Optimizing the performance of mean-variance portfolios in various markets: an “old-school” approach
Roberto Stein ,
Orlando E. Contreras-Pacheco
doi: http://dx.doi.org/10.21511/imfi.15(1).2018.17
Investment Management and Financial Innovations Volume 15, 2018 Issue #1 pp. 190-207 Views: 1611 Downloads: 494 TO CITE АНОТАЦІЯThe authors study the performance of mean-variance optimized (MVO) equity portfolios for retail investors in various markets in the U.S. and around the world. Actively managed equity mutual funds have relatively high fees and tend to underperform their benchmark. Index funds such as exchange traded funds still charge appreciable fees, and only deliver the performance of the benchmark. The authors find that MVO portfolios are relatively easy to manage by a retail investor, and that they tend to outperform their benchmark or, at worst, equal its performance, even after adjusting for risk. Moreover, they show that the performance of these funds is not particularly sensitive to the frequency at which they are rebalanced so that, in the limit, an investor might have to rebalance his/her portfolio only once a year. This last finding translates into very low trading costs, even for retail investors. Thus, the authors conclude that MVOs offer an easy, cheap alternative to invest in the world’s equity markets.
-
Determinants of the savings market in Russia
Nina Morozko ,
Natalia Morozko ,
Valentina Didenko
doi: http://dx.doi.org/10.21511/bbs.13(1).2018.18
Banks and Bank Systems Volume 13, 2018 Issue #1 pp. 196-208 Views: 1578 Downloads: 396 TO CITE АНОТАЦІЯThe main component of the bank’s efficient operations is a sufficient amount of deposit resources. The sharp devaluation of the national currency, the unstable situation of banks, and a significant number of bankruptcies adversely affected the propensity of the subjects to save. In the banking sector, a critical situation has developed when depositors, having lost confidence in banking institutions, began to withdraw money from deposit accounts, and in the crisis, this issue becomes the most important, because the massive withdrawal of deposits significantly worsens the liquidity of banks. With that in mind, the purpose of the article is to consider the main trends and prospects for the savings market development in Russia.
The article analyzes the strengths and weaknesses of Russia’s savings market. Using banking statistics, similarities and differences in the savings market are shown, based on determinants such as the share of deposits in bank liabilities; the volume of deposits in national and foreign currencies, the role of leading banks; number of accounts; the volume of guaranteed deposits; and banking conditions. The study focuses on an empirical analysis of the relationship between gross savings and banking variables such as demand deposits, interest spread, and the bank capital to assets ratio. The domestic market of household savings is analyzed. This conclusion is also made visible as a result of the correlation-regression experiment.
