The domestic resource gap and current transaction deficit in Indonesia in 2010-2014
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Author(s)Anhulaila M. Palampanga ,Bakri HasanuddinLink to ORCID Index: https://orcid.org/0000-0002-2830-911X
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DOIhttp://dx.doi.org/10.21511/imfi.14(1-1).2017.13
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Article InfoVolume 14 2017, Issue #1 (cont.), pp. 263-267
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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.
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JEL Classification (Paper profile tab)E2
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References11
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Tables3
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Figures0
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- 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)
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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: 2701 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.
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Roberto Stein ,
Orlando E. Contreras-Pacheco
doi: http://dx.doi.org/10.21511/imfi.15(1).2018.17
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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.
