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ECONOMIC DEVELOPMENT AND HAPPINESS: A CROSS-NATIONS PATH ANALYSIS

 

ECONOMIC DEVELOPMENT AND HAPPINESS: A CROSS-NATIONS PATH ANALYSIS

Muchdie, Muchdie

This paper analysis direct and indirect impacts of economic development indicators that consist of economic growth, human development and global competitiveness, on happiness. Cross-section data on economic growth, human development, global competitiveness and happiness were collected from 123 countries and employed to a path analysis model. The result showed that directly, in Path-1 the impact of economic growth on happiness was negative and significant. Indirectly, the impacts of economic growth on happiness varied depend on the path. In Path-7, P43-P31, the impact of economic growth on happiness through global competitiveness was positive and significant. In Path-8, P43-P32-P21, the impact of economic growth on happiness through global competitiveness and human development was negative, but statistically was not significant. Finally, in Path-9, P42-P21, the impact of economic growth on happiness through humandevelopment was negative but statistically was not significant. The implication of this finding was that economic growth no longer important factor in development, especially when development aimed to make people happy.

This paper analysis direct and indirect impacts of economic development indicators that consist of economic growth, human development and global competitiveness, on happiness. Cross-section data on economic growth, human development, global competitiveness and happiness were collected from 123 countries and employed to a path analysis model. The result showed that directly, in Path-1 the impact of economic growth on happiness was negative and significant. Indirectly, the impacts of economic growth on happiness varied depend on the path. In Path-7, P43-P31, the impact of economic growth on happiness through global competitiveness was positive and significant. In Path-8, P43-P32-P21, the impact of economic growth on happiness through global competitiveness and human development was negative, but statistically was not significant. Finally, in Path-9, P42-P21, the impact of economic growth on happiness through humandevelopment was negative but statistically was not significant. The implication of this finding was that economic growth no longer important factor in development, especially when development aimed to make people happy.

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KONSEP DAYA SAING WILAYAH PERSPEKTIF TEKNOLOGI

 

KONSEP DAYA SAING WILAYAH PERSPEKTIF TEKNOLOGI

Muchdie, Muchdie

Pembahasan mengenai konsep daya saing tidak bisa dilepaskan dari evolusi teori daya saing itu sendiri. Pada awalnya teori daya saing secara spesifik membahas tentang kemampuan suatu perusahaan agar tetap survive dalam apasar yang dinamis. Dari teori daya saing pada tingkat perusahaan dalam suatu negara, kemudian berkembang menjadi suatu konsep daya saing antarnegara. Dalam bagian ini selain menjelaskan tentang evolusi teori daya saing, dicontohkan pula beberapa pengukuran atau pemeringkatan daya saing dengan metodologi yang berbeda-beda dari berbagai penelitian yang pernah dilakukan di Indonesia

Pembahasan mengenai konsep daya saing tidak bisa dilepaskan dari evolusi teori daya saing itu sendiri. Pada awalnya teori daya saing secara spesifik membahas tentang kemampuan suatu perusahaan agar tetap survive dalam apasar yang dinamis. Dari teori daya saing pada tingkat perusahaan dalam suatu negara, kemudian berkembang menjadi suatu konsep daya saing antarnegara. Dalam bagian ini selain menjelaskan tentang evolusi teori daya saing, dicontohkan pula beberapa pengukuran atau pemeringkatan daya saing dengan metodologi yang berbeda-beda dari berbagai penelitian yang pernah dilakukan di Indonesia

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TECHNICAL EFFICIENCY AND RETURN TO SCALE IN THE INDONESIA ECONOMY DURING THE NEW ORDER AND THE REFORMATION GOVERNMENTS

 

TECHNICAL EFFICIENCY AND RETURN TO SCALE IN THE
INDONESIA ECONOMY DURING THE NEW ORDER AND THE
REFORMATION GOVERNMENTS

Muchdie, Muchdie

This paper analyses technical efficiency and return to scale in the Indonesia economy during the
year of 1967 to 2013. These range of years covering two eras of Indonesian government; the New
Order era that lasted between the year of 1966 to 1998 and the Reformation era during the year 1998
to 2014. The analysis was also based on the Indonesia economy’s business cycle those categorised
as Oil Booming Phase (1967-1981), Recession Phase (1982-1986), Deregulation Phase (1987-1996),
Multidimension Crisis Phase (1997-2001) and Economic Recovery Phase (2002-2013). Using data on
Gross Domestic Product based on constant price of the year 2000, capital stock with the same based
year and employment (1967-2013), Cobb-Douglas production functions were exercised to calculate
technical efficiency and return to scale employing regression analysis tehniques. The results shows
that technical effiency during the New Order Goverment were better than those during Reformation
Goverment. The results also showed that technical efficiencies vary among phases in the Indonesian
economy.

This paper analyses technical efficiency and return to scale in the Indonesia economy during the
year of 1967 to 2013. These range of years covering two eras of Indonesian government; the New
Order era that lasted between the year of 1966 to 1998 and the Reformation era during the year 1998
to 2014. The analysis was also based on the Indonesia economy’s business cycle those categorised
as Oil Booming Phase (1967-1981), Recession Phase (1982-1986), Deregulation Phase (1987-1996),
Multidimension Crisis Phase (1997-2001) and Economic Recovery Phase (2002-2013). Using data on
Gross Domestic Product based on constant price of the year 2000, capital stock with the same based
year and employment (1967-2013), Cobb-Douglas production functions were exercised to calculate
technical efficiency and return to scale employing regression analysis tehniques. The results shows
that technical effiency during the New Order Goverment were better than those during Reformation
Goverment. The results also showed that technical efficiencies vary among phases in the Indonesian
economy.

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GIRIOT REVISITED: UP-DATED AND EVALUATED

 

GIRIOT REVISITED: UP-DATED AND EVALUATED

Muchdie, Muchdie

This paper reported an evaluated of a hybrid procedure in GIRIOT (Generation Inter-Regional
Input-Output Table) applied for an Island economy of Indonesia. The model was then up-dated
using Indonesian data for the year 2015. GIRlOT combines and modifies the GRIT II and GRIT
III procedures developed at The University of Queensland. At least three aspects of the new
procedure are different to GRIT; the hybrid procedure designed for a mainland economy in a
developed country. GRIT uses national technical coefficients. GIRlOT adjusts regional
technology differences since in an island country like Indonesia; regional diversity exists in its
ecology, economy and culture. GRIT uses LQ (Location Quotient) techniques. GIRIOT
estimates the intra-regional input coefficients by employing the generalised RSP (Regional
Supply Percentage) and uses column-only as well as row-only approaches. The two approaches
are then reconciled. GIRlOT also estimates the inter-regional input coefficients using the interisland
transport pattern of commodity groups for primary and secondary sectors and the pattern
of population distribution for the non-zero imports of service sectors. The GIRIOT procedure
consists of three stages, seven phases and twenty four steps. Stage I: Estimation of Regional
Technical Coefficients, consists of two phases, namely Phase 1: Derivation of National
Technical Coefficients and Phase 2: Adjustment for Regional Technology. Stage II: Estimation
of Regional Input Coefficients, consists of two phases, namely Phase 3: Estimation of Intraregional
Input Coefficients, and Phase 4: Estimation of Inter-regional Input Coefficients, and
Stage III: Derivation Transaction Tables, consists of three phases, namely Phase 5: Derivation of
Initial Transaction Tables, Phase 6: Sectoral Aggregation, and Phase 7: Derivation of Final
Transaction Tables. The results were two 5 region-9 sector models; row only table and column
only table. The validity of the two tables was tested using professional judgment as well as
sensitivity test of multipliers resulted yang the models.

This paper reported an evaluated of a hybrid procedure in GIRIOT (Generation Inter-Regional
Input-Output Table) applied for an Island economy of Indonesia. The model was then up-dated
using Indonesian data for the year 2015. GIRlOT combines and modifies the GRIT II and GRIT
III procedures developed at The University of Queensland. At least three aspects of the new
procedure are different to GRIT; the hybrid procedure designed for a mainland economy in a
developed country. GRIT uses national technical coefficients. GIRlOT adjusts regional
technology differences since in an island country like Indonesia; regional diversity exists in its
ecology, economy and culture. GRIT uses LQ (Location Quotient) techniques. GIRIOT
estimates the intra-regional input coefficients by employing the generalised RSP (Regional
Supply Percentage) and uses column-only as well as row-only approaches. The two approaches
are then reconciled. GIRlOT also estimates the inter-regional input coefficients using the interisland
transport pattern of commodity groups for primary and secondary sectors and the pattern
of population distribution for the non-zero imports of service sectors. The GIRIOT procedure
consists of three stages, seven phases and twenty four steps. Stage I: Estimation of Regional
Technical Coefficients, consists of two phases, namely Phase 1: Derivation of National
Technical Coefficients and Phase 2: Adjustment for Regional Technology. Stage II: Estimation
of Regional Input Coefficients, consists of two phases, namely Phase 3: Estimation of Intraregional
Input Coefficients, and Phase 4: Estimation of Inter-regional Input Coefficients, and
Stage III: Derivation Transaction Tables, consists of three phases, namely Phase 5: Derivation of
Initial Transaction Tables, Phase 6: Sectoral Aggregation, and Phase 7: Derivation of Final
Transaction Tables. The results were two 5 region-9 sector models; row only table and column
only table. The validity of the two tables was tested using professional judgment as well as
sensitivity test of multipliers resulted yang the models.

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INDONESIA’S INTER-REGIONAL INPUT-OUTPUT MODEL: A NEW HYBRID PROCEDURE FOR AN ISLAND ECONOMY

 

INDONESIA’S INTER-REGIONAL INPUT-OUTPUT
MODEL: A NEW HYBRID PROCEDURE FOR AN ISLAND ECONOMY

Muchdie, Muchdie

Tulisan ini menggagas sebuah prosedur hibrida baru dalam penyusunan model input-output antardaerah pada suatu perekonomian kepulauan, dengan mengacu kepada kasus khusus Indonesia. Prosedur ini, disebut GIRIOT, merupakan kombinasi dan modifikasi dari prosedur GRIT II dan GRIT III; prosedur hibrida yang dirancang untuk perekonomian maju di negara benua. Dua prosedur hibrida dalam penyusunan model input-output antardaerah akan ditelaah. Kemudian, empat pertimbangan dasar dari prosedur hibrida baru akan dikemukakan, sebelum prosedur yang diusulkan dibahas; tahap demi tahap. Menggunakan data Indonesia, dua model input-output antardaerah kemudian dihasiikan. Pengujian validitas model menunjukkan bahwa prosedur yang digagas menghasilkan model input-output antardaerah yang dalam batas tertentu mencerminkan karakteristik perekonomian kepulauan Indonesia.

Tulisan ini menggagas sebuah prosedur hibrida baru dalam penyusunan model input-output antardaerah pada suatu perekonomian kepulauan, dengan mengacu kepada kasus khusus Indonesia. Prosedur ini, disebut GIRIOT, merupakan kombinasi dan modifikasi dari prosedur GRIT II dan GRIT III; prosedur hibrida yang dirancang untuk perekonomian maju di negara benua. Dua prosedur hibrida dalam penyusunan model input-output antardaerah akan ditelaah. Kemudian, empat pertimbangan dasar dari prosedur hibrida baru akan dikemukakan, sebelum prosedur yang diusulkan dibahas; tahap demi tahap. Menggunakan data Indonesia, dua model input-output antardaerah kemudian dihasiikan. Pengujian validitas model menunjukkan bahwa prosedur yang digagas menghasilkan model input-output antardaerah yang dalam batas tertentu mencerminkan karakteristik perekonomian kepulauan Indonesia.

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PERANAN INDUSTRI PENGOLAHAN HASIL PERTANIAN DALAM PENGEMBANGAN WILAYAH TRANSMIGRASI

 

PERANAN INDUSTRI PENGOLAHAN HASIL PERTANIAN DALAM PENGEMBANGAN WILAYAH TRANSMIGRASI

Muchdie, Muchdie

Peranan Industri Pengolahan Hasil Pertanian (IPHP) Dalam Pengembangan Wilayah Transmigrasi dengan Kasus Pabrik Pandu (Pilot Plant) Ethanol di Satuan Kawasan Pemukiman Transmigrasi Tulang Bawang I, Lampung (Di bawah Bimbingan Lutfi Ibrahim NASOETION sebagai Ketua, isang GONARSYAH dan Bambang Sulistiyo UTOMO sebagai Anggota). Penelitian ini bertujuan untuk : (1) memperkirakan dampak IPHP terhadap peningkatan pendapatan wilayah, (2) mempelajari kesediaan transmigran untuk mengusahakan tanaman Ubi kayu sebagai bahan baku bagi IPHP dan (3) mempelajari kemungkinan alokasi pemanfaatan lahan yang dapat memaksimumkan pendapatan transmigran dari kegiatan usaha tani.

Peranan Industri Pengolahan Hasil Pertanian (IPHP) Dalam Pengembangan Wilayah Transmigrasi dengan Kasus Pabrik Pandu (Pilot Plant) Ethanol di Satuan Kawasan Pemukiman Transmigrasi Tulang Bawang I, Lampung (Di bawah Bimbingan Lutfi Ibrahim NASOETION sebagai Ketua, isang GONARSYAH dan Bambang Sulistiyo UTOMO sebagai Anggota). Penelitian ini bertujuan untuk : (1) memperkirakan dampak IPHP terhadap peningkatan pendapatan wilayah, (2) mempelajari kesediaan transmigran untuk mengusahakan tanaman Ubi kayu sebagai bahan baku bagi IPHP dan (3) mempelajari kemungkinan alokasi pemanfaatan lahan yang dapat memaksimumkan pendapatan transmigran dari kegiatan usaha tani.

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KEBERARTIAN SEKTOR INDUSTRI DI PULAU JAWA DALAM PEREKONOMIAN INDONESIA : ANALISIS INPUT-OUTPUT ANTARDAERAH

 

KEBERARTIAN SEKTOR INDUSTRI DI PULAU JAWA DALAM PEREKONOMIAN INDONESIA :
ANALISIS INPUT-OUTPUT ANTARDAERAH

Muchdie, Muchdie

The island of Java is significantly important for the Indonesian economy as the national economy is highly concentrated in this island. Historically, the island of Java has dominated the Indonesian economy since the colonial era. More than 60 per cent output of the Indonesian economy resulted by the island of Java. Using an inter-island input-output model, this paper shows the economic significant of manufacturing industry, the island of Java and Java’s manufacturing industry in the Indonesian economy.

The island of Java is significantly important for the Indonesian economy as the national economy is highly concentrated in this island. Historically, the island of Java has dominated the Indonesian economy since the colonial era. More than 60 per cent output of the Indonesian economy resulted by the island of Java. Using an inter-island input-output model, this paper shows the economic significant of manufacturing industry, the island of Java and Java’s manufacturing industry in the Indonesian economy.

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INFLASI, PENGANGGURAN DAN PERTUMBUHAN EKONOMI DI NEGARA-NEGARA ISLAM

 

INFLASI, PENGANGGURAN DAN PERTUMBUHAN EKONOMI
DI NEGARA-NEGARA ISLAM

Muchdie, Muchdie

This paper discuss on inflation, unemployment and economic growth in Islamic State Nations.
There are two types of Islamic state nations in this study, namely Islamic states that have adopted
Islam as the ideological foundation and constitution (6 countries) and the other one is that Muslimmajority
nation-states
that
have
endorsed
Islam as
their
state
religion
(14

countries). The Philips
curve does exist in the countries as indicated by negative correlation between inflation rate and the
rate of unemployment which was statistically significant, although the coefficent of determination
was very small. Multiple regression analysis which inflation and unemployment were independent
variables and economic growth was dependent variable showed that there were not significant
simultant negative influences of the rate of inflation and the rate of unemployment toward economic
growth. But, partially both inflation and unemployment have significant negative impact on
economic growth in Islamic countries.

This paper discuss on inflation, unemployment and economic growth in Islamic State Nations.
There are two types of Islamic state nations in this study, namely Islamic states that have adopted
Islam as the ideological foundation and constitution (6 countries) and the other one is that Muslimmajority
nation-states
that
have
endorsed
Islam as
their
state
religion
(14

countries). The Philips
curve does exist in the countries as indicated by negative correlation between inflation rate and the
rate of unemployment which was statistically significant, although the coefficent of determination
was very small. Multiple regression analysis which inflation and unemployment were independent
variables and economic growth was dependent variable showed that there were not significant
simultant negative influences of the rate of inflation and the rate of unemployment toward economic
growth. But, partially both inflation and unemployment have significant negative impact on
economic growth in Islamic countries.

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ECONOMIC GROWTH AND HAPPINESS: A CROSS-NATIONS PATH ANALYSIS MODEL

 

ECONOMIC GROWTH AND HAPPINESS: A CROSS-NATIONS PATH ANALYSIS MODEL

Muchdie, Muchdie

This paper directly and indirectly examines the impact of economic growth on happiness, with human development as
moderator variable. Cross-nations data on economic growth, human development, and happiness indices were collected from 124
countries and employed in a path analysis model. The results show that economic growth had a direct negative and significant impact
on both happiness and human development. Meanwhile, human development had a positive and significant direct impact on happiness.
Indirectly, through moderator variable human development, economic growth again had a negative and significant impact on
happiness. An implication of this finding was that economic growth is no longer a single important factor of a development indicator. It
is then suggested that human development, rather than economic growth, sustainably be promoted in order to make everyone always
feels happy

This paper directly and indirectly examines the impact of economic growth on happiness, with human development as
moderator variable. Cross-nations data on economic growth, human development, and happiness indices were collected from 124
countries and employed in a path analysis model. The results show that economic growth had a direct negative and significant impact
on both happiness and human development. Meanwhile, human development had a positive and significant direct impact on happiness.
Indirectly, through moderator variable human development, economic growth again had a negative and significant impact on
happiness. An implication of this finding was that economic growth is no longer a single important factor of a development indicator. It
is then suggested that human development, rather than economic growth, sustainably be promoted in order to make everyone always
feels happy

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SPATIAL DIMENSIONS OF MULTIPLIERS IN SUMATRA ISLAND ECONOMY: AN INTER-REGIONAL INPUT-OUTPUT ANALYSIS

 

SPATIAL DIMENSIONS OF MULTIPLIERS IN SUMATRA ISLAND ECONOMY:
AN INTER-REGIONAL INPUT-OUTPUT ANALYSIS

Muchdie, Muchdie

This paper provides the results of analysis of total, sectoral-specific,
and spatial-specific multipliers and flow-on effects in Sumatera Island
economy. The model employed was Inter-Regional Input-Output
Model (IRIOM) developed using new hybrid procedures with special
attention on Island economy. Data used for model were updated
Indonesian data for the year of 2015. The results show that firstly, the
important sectors of Sumatra Island economy could be based on total
multipliers and flow-on effects of output, income and employment.
Secondly, important economic sectors could be based on sector-specific
multipliers effects; multipliers that occurred in own sector and other
sectors. Thirdly, important economic sectors could be based on spatialspecific

multipliers; multipliers that occurred both in own region and
other regions. Fourthly, important economic sectors could be based on
spatial distribution of flow-on; flow-on effects that occurred in own
region as well as in other regions.

This paper provides the results of analysis of total, sectoral-specific,
and spatial-specific multipliers and flow-on effects in Sumatera Island
economy. The model employed was Inter-Regional Input-Output
Model (IRIOM) developed using new hybrid procedures with special
attention on Island economy. Data used for model were updated
Indonesian data for the year of 2015. The results show that firstly, the
important sectors of Sumatra Island economy could be based on total
multipliers and flow-on effects of output, income and employment.
Secondly, important economic sectors could be based on sector-specific
multipliers effects; multipliers that occurred in own sector and other
sectors. Thirdly, important economic sectors could be based on spatialspecific

multipliers; multipliers that occurred both in own region and
other regions. Fourthly, important economic sectors could be based on
spatial distribution of flow-on; flow-on effects that occurred in own
region as well as in other regions.

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