Main Content
Lembaga Kita Journal Portal
Open Access Articles

The Effect of Sharia Bank Financing, Government Expenditures and Investment on Economy Growth in Indonesia

  • Hariandy Hasby1*
  • Sufyani HS2
  • Norvadewi3
  • Anizir Ali Murad4
  • Filus Raraga5
1 Sekolah Tinggi Ilmu Ekonomi Stan Im image/svg+xml
2 Universitas Pembangunan Nasional Veteran Jakarta image/svg+xml
3 Universitas Islam Negeri Sultan Aji Muhammad Idris Samarinda image/svg+xml
4 Serang Raya University image/svg+xml
5 Universitas Halmahera image/svg+xml
* Corresponding Author: Hariandy Hasby

Abstract

The objectives of this study is to analyze the influence of Islamic bank financing, government expenditure, and investment on economic growth in Indonesia. These three problems can be answered by the vector autoregressive model (VAR) and the vector error correction model (VECM). VAR/VECM is a type of macro-econometrics model that is commonly used to analyze economic fluctuations. In addition, researchers also have reasons for using this method, namely because of several advantages of this method. Islamic bank financing does not have a significant effect on economic growth in Indonesia. whereas, in the long term, Islamic bank financing has a significant and negative effect on economic growth with a coefficient value of -1.111488. This shows that in the long term, changes in Islamic bank financing will always be followed by changes in GDP in the reverse direction, meaning that if there is an increase of 1% in GDP, there will be a decrease of 1.11% in Islamic bank financing. In the short term, government spending has no significant effect on economic growth in Indonesia. whereas in the long run, government spending has a positive and significant influence on economic growth in Indonesia.

Keywords

islamic bank financing government expenditure investment economic growth

How to Cite

Citation Format
Hasby, H., Sufyani HS, Norvadewi, Anizir Ali Murad, & Filus Raraga. (2023). The Effect of Sharia Bank Financing, Government Expenditures and Investment on Economy Growth in Indonesia. JEMSI (Jurnal Ekonomi, Manajemen, Dan Akuntansi), 9(1), 112-118. https://doi.org/10.35870/jemsi.v9i1.913

References

15 References
  • Arsyad, L. (2004). Development Economic. Yogyakarta: STIE YKPN.
  • Boediono. (1985). Theory of Economic Development. Yogyakarta : BPFE.
  • Prasetya, F. (2012). Theory of Government Expenditure. Malang: Universitas Brawijaya.
  • Sukirno, S. (2008). Pengantar Teori Mikro Ekonomi. Jakarta. Pt. Raja Grafindo.
  • Abidin, Z. (2012). Meneropong Konsep Pertumbuhan Ekonomi. Al Ihkam, 7(2), 356–367.
  • Afandi, M. A., & Amin, M. (2019). Islamic Bank Financing and Its Effects On Economic Growth: A Cross Province Analysis. Signifikan: Jurnal Ilmu Ekonomi, 8(2), 243–250.
  • Al-Fayoumi, B. A. N. (2016). Bank Concentration, Institutional Quality, And Economic Growth: Empirical Evidence From Mena Countries. Review Of International Business And Strategy, 26(2).
  • Ang, J. B. (2008). A Survey Of Recent Developments In The Literature Of Finance And Growth. Journal Of Economic Surveys, 22, 536-576., 22, 536–576.
  • Anitasari, M., & Soleh, A. (2015). Role of Government Expenditure on Economic Growth. Ekombis Review: Jurnal Ilmiah Ekonomi Dan Bisnis, 3(2), 117–127.
  • Baehaqy, H. N. & Cahyono, E. F. (2019). Role of Conventional Financing and Sharia Financing on Economic Growth. Jurnal Ekonomi Syariah Teori Dan Terapan, 6(6), 1272-1286.
  • Basuki, A. T. (2018). Application Der Model in Economic. Jakarta: Universitas Muhammadiyah Jakarta.
  • Beik, I. S., & Fatmawati, S. W. (2014). Determinants Factor Jakarta Islamic Index. Al-Iqtishad, 6(2), 155–178.
  • Eka, H., Maruto, P., & Basuki, U. (2019). Role of Deficit Budget on Economic. Diponegoro Journal Of Economics, 1(1), 67.
  • Hasyim, L. T. U. (2016). Adapting Workplace Learning In The Time Of Coronavirus. Akrual, 8(1), 11–27.
  • Ilyas, R. (2015). Financing Concept in Sharia Banking. Jurnal Penelitian, 9(1), 183–204.

License

This is an open-access journal distributed under the Creative Commons Attribution 4.0 International License (CC BY 4.0), which permits unrestricted use, distribution, reproduction, and adaptation in any medium (even commercially), provided appropriate credit is given to the original author(s), a link to the license is provided, and any changes made are indicated. Authors retain copyright without restrictions and grant the journal the right of first publication as well as non-exclusive publishing rights for archiving, indexing, and scholarly dissemination.

Downloads

OJS UsageStats Plugin
Download data is not yet available.

Similar Articles

You may also start an advanced similarity search for this article.

Contrimetric

Recommended Articles