ETIKONOMI ETIKONOMI is an international journal published by Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta in cooperation with The Indonesian Association of Islamic Economist (IAEI). This journal focusing on Research about Economics in Developing Countries. ETIKONOMI is published twice a year (April and October), and it aims to disseminate Economics research conducted by researchers. Papers published by ETIKONOMI have been using English since 2016. Etikonomi has become a CrossRef Member since year 2015. Therefore, all articles published by Etikonomi will have unique DOI number Etikonomi had accredited Tier 1 by Ministry of Education, Culture, Research, and Technology No. 158/E/KPT/2021 on December 9, 2021, Valid from Vol. 20(1), 2021 until Vol. 24(2), 2025 (Renewal of Accreditation No. 51/E/KPT/2017 on December 4, 2017 (Amendment of No. 48a/KPT/2017 on October 30, 2017). Etikonomi indexed by Emerging Sources of Citation Index, CrossRef, Dimensions, Sinta (S1), Goggle Scholar, Garuda-Dikti, Moraref, Indonesia One Search, ISJD LIPI, ASEAN Citation Index (ACI), etc. Etikonomi has been selected for coverage in Clarivate Analytics. Beginning with Vol. 16(1) 2017, Etikonomi will be indexed and abstracted in Emerging Sources Citation Index. Journal Metrics (2022) Journal Impact Factor (WoS) 0.8 Citedness in Web of Science 92 Citedness in Scopus (secondary document) 186 Citations in Google Scholar 6,012 h-index (Google Scholar) 37 i-10 index (Google Scholar) 151 ISSN Print: 1412-8969 Online: 2461-0771
Faculty of Economic and Business, Universitas Islam Negeri Syarif Hidayatullah Jakarta
Market Anomalies and Investor Behavior: The January Effect in ASEAN Countries
Research Originality: This study provides a fresh contribution to the literature on market anomalies, specifically the January Effect, within ASEAN capital markets. Research Objectives: The objective of this research is to investigate the presence and extent of the January Effect by analyzing stock returns and abnormal returns of publicly listed companies in ASEAN capital markets. Research Methods: Data were obtained through purposive sampling, resulting in a final sample of 153 companies. The research hypotheses were tested using paired sample t-tests. Empirical Results: The findings indicate that the January Effect is evident in certain capital market indices within ASEAN but is not consistently observed across all markets. The presence of higher stock returns and abnormal returns in January does not conclusively confirm the January Effect in every instance. Implications: Investors are advised to exercise caution and not rely solely on seasonal anomalies, a comprehensive approach that includes broader market fundamentals and macroeconomic indicators is essential for sound decision-making within ASEAN capital markets. JEL Classification: E22, F21, G14
Copyright (c) 2025 Afiq Chamim Mubaroq, Christina Tri Styorini, Ascaryan Rafinda, Pangeran Fajar Ramdhani, Osama Alhendi, Muhammad Arif Ikhsanudin https://creativecommons.org/licenses/by-sa/4.0
Multidimensional Poverty in Indonesia: The Role of Economic, Social, Educational, and Political Factors
Research Originality: This study advances the field by employing a comprehensive, multidimensional framework that examines the synergistic interactions between economic, social, educational, and political factors. This study also provides a more nuanced and evidence-based perspective on poverty dynamics, moving beyond the oversimplified, single-dimensional analyses that have dominated prior scholarship. Research Objectives: This study aims to examine the impact of educational participation, crime rates, unemployment, access to Islamic financing, and the democracy index on poverty levels in Indonesia. Research Methods: Panel data from 2015 to 2022 is examined using a fixed effects model to identify the key determinants of poverty. Empirical Results: The findings indicate that higher net enrolment rates and increased access to Islamic financing significantly contribute to poverty reduction y, while rising crime rates and unemployment are associated with increased poverty levels. Interestingly, the democracy index shows no statistically significant effect on poverty during the examined period. Implications: The findings have significant policy relevance, emphasizing the need to enhance access to quality education, promote job creation, and expand Islamic financing as an inclusive economic tool. JEL Classification: I32, E24, G21
Copyright (c) 2025 Ali Rama https://creativecommons.org/licenses/by-sa/4.0
Mediating Role of Self-Efficacy: Resiliency and Entrepreneurial Intention in Young Generation
Research Originality: While combining the TPB and Linan Model, this study provides novelty through its analysis of the underexplored role of financial resources and self-efficacy in shaping entrepreneurial intentions among the young generation. Research Objectives: The research investigates the resilience factors that shape entrepreneurial ambition, focusing on the direct effects of entrepreneurship education, creativity, and financial resources, as well as the indirect effect of entrepreneurial self-efficacy on the relationship between these factors and entrepreneurial intention. Research Methods: This study utilizes a questionnaire survey from 312 college students in Jakarta. Structural equation modeling (SEM) was used to analyze the data. Empirical Results: The findings show that financial resources, entrepreneurial education, and creativity influence self-efficacy. The associations between creativity and entrepreneurial intention, as well as between entrepreneurship education and entrepreneurial intention, are significant for the indirect paths that use self-efficacy as a mediator. Implications: We recommend that universities, governments, and other stakeholders prioritize initiatives that offer financial assistance and focus on educational programs and support systems that enhance confidence and belief in entrepreneurial capabilities. JEL Classification: L26, I23, O10
Copyright (c) 2025 Regina Zaviera Anggi Kurniawati, Christian Haposan Pangaribuan, Agung Stefanus Kembau, Edric Budiman Nilam https://creativecommons.org/licenses/by-sa/4.0
Economic Turbulence in Indonesia: The Effects of Instability and Crisis
Research Originality: This study presents a novel perspective by examining Indonesia’s economic growth over three crisis periods. It uniquely highlights how global economic uncertainty can strengthen Indonesia’s growth resilience when met with credible domestic policy responses. Research Objectives: The research investigates the effects of exports, imports, production value, interest rates, economic globalization, exchange rates, and state obligations on Indonesia’s economic growth at constant prices. Research Methods: Using quarterly time-series data from 1991Q1 to 2024Q1, the study employs a Dummy Variable–Autoregressive Distributed Lag model. Empirical Result: Exports have a direct negative effect on economic growth but when influenced indirectly by the global crisis and the pandemic, exports can actually contribute to growth. On the other hand, imports directly boost growth, but their impact is negatively affected by the global crisis. Additionally, interest rates support long-term growth but hinder it in the short run; however, crises may moderate this impact positively. Implications: These findings underscore the need for policymakers to craft dynamic, adaptable economic strategies that can safeguard Indonesia’s growth against future global shocks and uncertainties. JEL Classification: F41, E32, O53
Copyright (c) 2025 farawi ghannili https://creativecommons.org/licenses/by-sa/4.0
Untapping the Determinants of Islamic Financial Behaviour among Young Generations
Research originality: The originality of this research lies in its integrated examination of psychological, social, and educational determinants of Islamic financial behaviour within a localized Malaysian context. Research objectives: Grounded in the Theory of Planned Behaviour, the research investigates how Islamic financial literacy, financial risk attitude, parental financial socialization, and financial self-efficacy influence financial behaviour. Research methods: A structured questionnaire was distributed to 358 respondents aged 18 to 30, and the data were analyzed using covariance-based Structural Equation Modelling (CB-SEM). Empirical result: The study reveals two significant findings: parental financial socialization and financial self-efficacy strongly predict Islamic financial behaviour, while financial literacy and risk attitude show insignificant relationships. Implications: Policymakers should embed Islamic financial literacy in national youth programs, educators must integrate hands-on financial training into curricula, and Islamic finance providers are encouraged to offer youth-friendly, Shariah-compliant products supported by educational outreach and family-involved financial awareness initiatives. JEL Classification: D10, D14, D91, G41
Copyright (c) 2025 Muhammad Arif Fadilah Ishak, Mohd Faizuddin Muhammad Zuki, Muhammad Hafiz Hassan https://creativecommons.org/licenses/by-sa/4.0
Do Macroeconomic and Green Factors Influence Stock Returns in Indonesia?
Research Originality: This study adopts a multidimensional framework that integrates environmental sustainability and macroeconomic pressures to assess stock market behavior over the period 2018 to 2022, encompassing both pre-pandemic and post-pandemic economic contexts. Research Objectives: This research explores the impact of inflation, economic growth, green accounting, and environmental performance on stock returns of energy companies registered on IDXENERGY from 2018 to 2022. Research Methods: This study uses panel data regression analysis based on secondary data from 33 energy sector companies over five years. Empirical Result: Inflation has a statistically significant negative effect on stock returns, indicating that rising inflation tends to reduce investor returns in the energy sector. In contrast, economic growth, green accounting, and environmental performance do not show significant effects on stock returns, suggesting that these variables have no observable impact on firm performance in the capital market within the scope of this study. Implications: The findings emphasize the need for enhanced green reporting standards, stronger policy incentives for sustainable practices, and increased investor awareness regarding environmental performance. JEL Classification: E31, O47, M41, Q56, G12
Copyright (c) 2025 Mimelientesa Irman, Sarli Rahman, Yenny Wati https://creativecommons.org/licenses/by-sa/4.0
The Role of Economic and Social Safety Nets in Extreme Poverty in Indonesia
Research Originality: This study focused on addressing the goal of reducing extreme poverty (EP) to 0% by 2024 in Indonesia, an objective that has been underexplored in global literature. Research Objectives: This study examined convergence in EP across Indonesia and analyzed the impact of economic as well as social variables on poverty reduction. Research Methods: Panel data from 34 Indonesian provinces (2017–2022) were analyzed using Generalized Method of Moments (GMM) and K-means Cluster analysis for regional classification. Empirical Result: The results showed that provinces in Indonesia were reducing EP at an annual rate of 1.19%, with a half-life of 1.6 years. This process signified that the country was on a path to achieve near-zero EP by 2024. Major socioeconomic drivers identified during the study included employment expansion and investments in education. Moreover, K-means Cluster analysis identified Cluster 1 (Central Sulawesi, North Maluku, Papua) with the highest EP rate of 1.52%, showing critical geographic disparities. Implications: The Government should adopt a multilevel strategic framework prioritizing regions with the highest poverty rates. Job creation and better access to education played a crucial role. Additionally, Indonesia's success could serve as a model for sustainable EP eradication in developing nations. JEL Classification: I32, P46, Q01
Copyright (c) 2025 Sugeng Setyadi, Lili Indriyani, Anita Widiastuti https://creativecommons.org/licenses/by-sa/4.0
Clustering Indonesian Neobanking Users Through Extended UTAUT 3 for Retention Campaign Strategy
Research Originality: This study develops a behavior-anchored segmentation framework for Indonesian neobank users by extending the Unified Theory of Acceptance and Use of Technology (UTAUT-3) with trust and marketplace application usage, providing deeper insights into user behavior. Research Objectives: The research aims to identify distinct neobank user segments and key behavioral drivers to support targeted strategies in digital financial services. Research Method: An extended UTAUT-3 model incorporating trust and marketplace usage was validated through Structural Equation Modeling (SEM). Balanced Iterative Reducing and Clustering using Hierarchies (BIRCH) clustering was applied to data from 386 active users, with segment validity confirmed using Elbow, Gap, and Silhouette methods. Empirical Results: The results revealed that trust, habit, and marketplace usage emerged as primary drivers of engagement and user recommendations. This study identifies four user segments: transitioning explorers, urban occasionalists, rural digital enthusiasts, and cost-conscious digital natives. Implications: Urban Occasionalists and Rural Digital Enthusiasts show strong potential for long-term growth. Targeted engagement and personalized retention strategies for these segments can enhance customer lifetime value and strengthen user advocacy. JEL Classification: G21, M31, C38
Copyright (c) 2025 Febriandi Rahmatulloh, Ujang Sumarwan, Hartoyo Hartoyo, Bagus Sartono https://creativecommons.org/licenses/by-sa/4.0
Drivers of Cryptocurrency Adoption in Iran: Evidence from the Baluchistan Region
Research Originality: This study explores the key factors influencing the acceptance of cryptocurrencies in Iran, focusing on the under-researched Baluchistan region. In contrast to previous studies focusing on developed or technologically advanced economies, this research explores a socioeconomically disadvantaged region experiencing economic instability and restricted access to formal financial services. Research Objectives: The main goal of the study is to identify and analyze the key factors influencing cryptocurrency acceptance in this region. Research Methods: Using data from 200 active cryptocurrency users, we employed exploratory factor analysis followed by multiple regression analysis to identify and test predictive factors. Empirical Results: The findings reveal six primary drivers: financial constraints, national economic volatility, personality traits, social influences, managerial factors, and trust. Among these, income-related motivations and macroeconomic instability emerged as the strongest predictors of adoption. Implications: The study contributes to the literature by contextualizing cryptocurrency behavior within a developing country’s marginalized setting and provides insights for policymakers to enhance financial inclusion. It also highlights the need for regulatory clarity and user education to support safe and effective participation in digital finance. JEL Classification: G1, G4, G10, G41
Copyright (c) 2025 Majid Karimzadeh, Farzad Yousefi, Razieh Goldarzehi, Atefeh Delgarm https://creativecommons.org/licenses/by-sa/4.0
Bitcoin, Economic Freedom, and Underground Economies: A Tax Evasion Nexus
Research Originality: Our research uniquely integrates the dimension of economic freedom to assess its moderating effect on tax evasion in G-7 countries. This study also provides the latest tax evasion estimates in G-7 countries using the currency demand approach to measure the effectiveness of policies employed by the regulators to reduce large numbers of tax evasion. Research Objectives: This study estimates tax evasion in G-7 countries and measures the impact of cryptocurrencies on tax evasion at different levels of economic freedom. Research Method: This study employs the Currency Demand Approach to estimate tax evasion and then utilizes asymmetric/symmetric panel techniques (ARDL/NARDL) to confirm the impact of cryptocurrencies and all indicators of economic freedom on tax evasion. Empirical Results: Our investigation unveils that cryptocurrencies significantly impact tax evasion. This study also finds economic freedom indicators' asymmetric/symmetric impact and confirms the moderating impact. Economic freedom indicators significantly increase/decrease the impact of cryptocurrencies on tax evasion. Implications: Cryptocurrencies may be given due importance while drafting tax-related policies, and policymakers must maintain the optimum levels of economic freedom where cryptocurrencies do not support tax evasion. JEL Classification: H26, E42, O17, E26, C33
Copyright (c) 2025 Allah Ditta Nawaz https://creativecommons.org/licenses/by-sa/4.0
Examining Underpricing in Initial Public Offering: Deepening Insights on Non-Financial Information
Research Originality: The nominal value variable from the prospectus in this study is the novelty, as no previous research has been found. Investors indicate the nominal value as a positive signal from the company to reduce existing information asymmetry. Research Objectives: This study examines the phenomenon of IPO underpricing on the Indonesia Stock Exchange, resulting in suboptimal IPO fund-raising. Research Method: Using a quantitative approach with descriptive and causality designs, the study analyzed 251 companies from 2017 to 2023 through multiple linear regression analysis. Empirical Results: Indonesia has a high IPO underpricing rate of 37.17%. Most IPOs (68.54%) were Shariah-compliant. The reputation of underwriters changed each year, and the free float ratio declined over time. On average, IPOs were oversubscribed by more than 28 times each year. Although COVID-19 affected market sentiment, it did not impact underpricing. The nominal value of IPO stocks varied each year but generally declined. Regression results show Shariah compliance and strong underwriters reduce underpricing, while higher free float, oversubscription, and nominal value increase it. Implications: The implications of this research theoretically support signaling theory and information asymmetry. Practically, this research can be a reference for further researchers, investors, companies, and the government as regulators. JEL Classification: G10, G24, G32, D82
Copyright (c) 2025 Dikanio Muhammad Rezky, A. Jajang W. Mahri, Suci Aprilliani Utami https://creativecommons.org/licenses/by-sa/4.0
Forecasting Indonesia's Unemployment Rate with Macroeconomic & Big Data: A MIDAS Approach
Research Originality: The current model is unable to forecast the unemployment rate utilizing varying periods of predictor variables. Furthermore, the use of official statistics and big data in previous studies to forecast Indonesia's unemployment rate has been limited. Research Objectives: This study forecasts Indonesia's biannual unemployment rate (UR) by utilizing monthly Google Trends Index (GTI) data, quarterly Gross Domestic Product (GDP) data, and monthly inflation data. Research Methods: The unrestricted mixed data sampling (U-MIDAS) model is applied to forecast Indonesia's UR using data from the second semester of 2006 to the first semester of 2024. Empirical Results: This study finds that the best model for predicting UR is one that utilizes a combination of big data and official statistics. Using 34 GTI keywords relevant to job seekers' cultural and behavioral patterns in Indonesia, Indonesia's UR in February 2024 was 4.7%. Implications: This study demonstrates that employing GTI and macroeconomic variables for forecasting unemployment enhances predictive accuracy compared to utilizing either variable independently. JEL Classification: C55, E24, J64
Copyright (c) 2025 Raisa Meidy Mustapa, Ribut Nurul Tri Wahyuni https://creativecommons.org/licenses/by-sa/4.0
Toward a Resilient Islamic Banking System: Insights from 14 Years of Research
Research Originality: This research is unique in that it consolidates macroeconomic and institutional studies to better understand how Islamic banks absorb and recover from financial shocks. Research Objectives: To investigate the conceptual and empirical development of Islamic banking resilience over the past 14 years, concentrating on dominating variables and thematic clusters. Research Method: The research examines 42 peer-reviewed journal articles indexed in Scopus through a comprehensive systematic literature review (SLR) methodology utilizing bibliometric instruments. Empirical Results: Internal factors like capital adequacy, liquidity, and profitability, as well as macroeconomic indices like GDP and inflation, influence resilience. The keyword “bank resilience” is underused, implying a lack of conceptual consistency in the literature. JEL Classification: G21, G32, E44, E58, Z12 Implications: An integrated view of resilience in Islamic finance and the requirement for specialized regulatory frameworks and resilience-based performance metrics customized to Islamic banking principles has substantial implications for researchers, policymakers, and regulators.
Copyright (c) 2025 Dimas Bagus Wiranatakusuma https://creativecommons.org/licenses/by-sa/4.0
Risk, Liquidity, and Performance: Evidence from the Commercial Banks in Bangladesh
Research Originality: This study examines the interplay between bank risk, liquidity, and profitability in Bangladesh's banking sector. Using a fresh approach, it shows their combined impact on stability and growth in emerging markets. It provides practical insights for banks to effectively manage these factors and achieve long-term resilience. Research Objectives: The study aims to investigate the interconnected influence of non-performing loan ratios and liquidity levels on profitability, and to analyze the effects of total asset growth, loan growth, and cost-to-income ratios on these dynamics. Research Methods: The study used a panel dataset of 31 listed commercial banks from 2012 to 2022. Ordinary Least Squares (OLS) regression was primarily employed, followed by Prais–Winsten regression with corrected standard errors (PCSEs) for correlated panels to validate the findings. Empirical Result: The research indicates that liquidity (LIQ) has a positive impact on profitability, with the net interest margin (NIM) being significantly influenced by non-performing loans. The control variable, SIZE, also showed statistical significance in performance. Implications: This study highlights the significance of asset quality, liquidity management, loan composition, and operational efficiency in determining bank profitability, providing valuable insights for bank managers and policymakers in emerging economies seeking to enhance their financial performance. JEL Classification: C33, G21, G32, C58
Copyright (c) 2025 Dr. Probir Kumar Bhowmik, Ariful Islam https://creativecommons.org/licenses/by-sa/4.0
Does Covid-19 Change The Stock Market Relationship With Interest-Exchange Rate?
Research Originality: Despite numerous studies conducted on similar topics, this study uniquely examines the short- and long-run dynamics of the interest rate, exchange rate, and stock prices in China under two distinct epochs: pre- and Covid-19 periods. Research Objectives: This study compares the impact of interest and exchange rates on the Chinese stock market during the COVID-19 and pre-COVID-19 periods. Furthermore, the study also investigated the speed of adjustment towards equilibrium following short-run shocks in the stock market. Research Method: This study employs monthly data on the Chinese stock market and the autoregressive distributed lag model-error correction model (ARDL-ECM) approach on a separate period. Empirical Results: On COVID-19, the interest rate and exchange rate are not jointly and individually cointegrated significantly in explaining the stock prices. Nevertheless, the short-run relationship is identified as significant for both variables. Meanwhile, during COVID-19, the variables are jointly significant, with the exchange rate also identified to explain the stock market movement in the long run individually. In the short run, despite the greater impact of the exchange rate, the interest rates have a hysteretic impact. Implications: The findings suggested that policymakers should leverage the exchange rate instrument as a better predictive tool in devising effective future policy-making. JEL Classification: C320, G11, G15
Copyright (c) 2025 Haorui SUN https://creativecommons.org/licenses/by-sa/4.0
Deconstructing Religiosity-Green Finance Relationship: The Role of Organizational Factors
Research originality: This study links religiosity to green finance in emerging-market banks, highlighting internal drivers, green HRM, organizational identity, and leadership over external pressures. It uniquely shows how personal beliefs shape sustainable finance through cultural and theoretical pathways. Research objectives: The research aims to examine how religiosity affects the willingness of banks to engage in green finance, and under what conditions this relationship is strengthened. Research methods: The research employs a quantitative survey method involving employees across both private and state-owned banking institutions within the specified province, involving a cross-section of 43 banks. Structural equation modelling is used to test the hypothesised relationships. Empirical result: The results reveal that religiosity influences green finance indirectly through the enhancement of internal organisational capacities. Specifically, religiosity strengthens environmental values and practices within human resource systems, leadership approaches, and organisational identity, which in turn foster commitment to green financial strategies. Implications: These findings highlight the strategic importance of cultural and leadership-based resources in promoting environmental sustainability in the banking sector. JEL Classification: G21, Q56, M14, J53, L21
Copyright (c) 2025 Muhammad Wisnu Girindratama, Ach Maulidi, Ali Elazumi Ali Alnajar, Ali Abdullah Mela https://creativecommons.org/licenses/by-sa/4.0
Exploring the Regional Multidimensional Poverty Pattern in Indonesia: Does Climate Matter?
Research originality: This study develops a comprehensive regional measure of poverty using the capability approach to understand the pattern of multidimensional poverty in Indonesia. Research objectives: This study has two objectives: first, to construct and examine multidimensional poverty levels in 33 Indonesian provinces from 2010 to 2020; and second, to investigate the association between climate variables and the Multidimensional Poverty Index (MPI). Research methods: The MPI is measured through equal weighting of 20 indicators. A pooled ordinary least squares regression was used to study the relationship between the climate variables and MPI. Empirical result: The findings indicate that most provinces have experienced a decrease in poverty over the past decade. However, significant inequality persists among provinces, particularly in the eastern regions of Indonesia. Further analysis reveals that temperatures exceeding 25.25 °C may lead to an increase in the MPI, while precipitation exceeding 9.5 mm/day is associated with a decrease in the MPI. Implications: This study underscores the importance of incorporating climate change concerns, specifically increasing temperatures and unpredictable precipitation, into poverty reduction strategies and highlights the need for region-specific policies to address the multifaceted nature of poverty in Indonesia effectively. JEL Classification: I32, O10, Q54
Copyright (c) 2025 Ira Eka Pratiwi https://creativecommons.org/licenses/by-sa/4.0
Sustainability and Loyalty in Halal Tourism: An Indonesian Perspective
Research Originality: This study introduces new behavioral dimensions, including environmental awareness, ethical service innovation, and tourists’ decision control, in the formation of loyalty and advocacy behavior. Research Objectives: This study examines the contribution of sustainability-oriented factors to Muslim tourist loyalty and recommendation behavior, with satisfaction and intention to revisit serving as mediating variables. Research Methods: A quantitative approach was employed using a structured questionnaire distributed to 460 Muslim tourists. The data were analyzed using structural equation modeling to evaluate the causal relationships among the variables. Empirical Results: Environmental awareness and tourists’ ability to make ethical decisions have a significant influence on loyalty and word-of-mouth behavior. Ethical service innovation enhances customer satisfaction, which in turn contributes to loyalty. Satisfaction and revisit intention were found to be essential mediators in this relationship. Implications: This study provides theoretical insights by integrating sustainability into halal tourism behavior models and offers practical recommendations for destination managers to develop emotionally engaging and environmentally responsible tourism services. JEL Classification: M31, O35, Q56, Z32
Copyright (c) 2025 Andhi Sukma, Robin Chen, Radhi Abdul Halim Rachmat, Denny Saputera https://creativecommons.org/licenses/by-sa/4.0
Nexus between Governance and Sustainable Development in Developing Countries: A Simultaneous Approach
Research Originality: The present research contributes a novel task in examining the simultaneous relationship between governance and sustainable development (SD), aiming to capture the endogenous relationship between these two concepts. Research Objectives: This study examines the relationship between governance and sustainable development in 59 developing countries, utilizing annual data from 2006 to 2022. Research Method: The study employs panel Generalized Methods of Moment (GMM) and panel three-stage least squares (3SLS) techniques by using STATA 17. Data for this study is extracted from the World Development Indicators (WDI), International Financial Statistics, and World Governance Indicators. Empirical Results: The findings indicate that governance, tax-to-GDP ratio, and financial development are positively related to SD. Moreover, SD also has a positive impact on governance in developing countries. Control variables, including the misery index and population, are negatively related to governance. Implications: The study offers policy recommendations to enhance transparency and government quality, which are integrated into the development process to reduce social disparities, mitigate environmental challenges, foster economic growth, and ensure the well-being of citizens. JEL Classification: F63, O16, Q01
Copyright (c) 2025 Ayesha Siddiqa, Muhammad Hassan Danish, Muhammad Ashfaq https://creativecommons.org/licenses/by-sa/4.0
The Nexus among Green Financing: Companies in G20 Emerging Market Countries
Research Originality: This study addresses this urgent research gap by examining not only these relationships but also the underexplored role of national R&D capacity as a moderating factor, highlighting how emerging economies' innovation limitations may dilute the benefits of green capital inflows. Research Objectives: This study analyzed the impact of green financing and FDI on firm profitability and productivity in G20 emerging markets, and assess how R&D expenditure moderates these effects. Research Method: Panel data from 57 multinational companies across ten G20 emerging market countries during 2016–2021 were analyzed using fixed-effect regression. Empirical Results: Green financing and FDI both show significant positive impacts on firm profitability and productivity. However, R&D negatively moderates the green finance–profitability link and has no significant moderating effect on productivity or the FDI relationship, suggesting structural inefficiencies in R&D systems within emerging economies. Implications: The findings call for urgent policy interventions to enhance R&D infrastructure and efficiency in G20 emerging markets. Redirecting subsidies from fossil fuels to green innovation, fostering public-private R&D collaboration, and strengthening institutional frameworks can help unlock the full potential of green finance and FDI in supporting a sustainable economic transformation. JEL Classification: Q5, G3, F2
Copyright (c) 2025 Nur Imamah, Irwan Trinugroho, Layyin Nafisa Arifin, Luki Okta Fahri https://creativecommons.org/licenses/by-sa/4.0
The Impact of Female Labor Force Participation on Regional Economic and Income Convergence
Research originality: Women tend to be chosen as the non-labor force, even though they are potential workers who can contribute directly to the economy. Their level of education influences this contribution. Research objectives: This research examined the impact of female labor force participation on regional economic and income convergence. Research methods: Pooled Least Squares (PLS) and panel data estimation were conducted using cross-sectional data on 472 cities/districts across Indonesia between 2016 and 2022. Empirical result: The findings reveal that female labor force participation significantly enhances regional economic growth only when women have at least a senior high school education. However, their contribution to accelerating economic convergence remains suboptimal, as most female workers are elementary school graduates. Implications: To improve the contribution of the female workforce to the economy, the government should extend compulsory education from 9 to 12 years, expand access to non-formal education for women, and establish a female-friendly labor market through job flexibility and improved childcare access. JEL Classification: I25, J21, E12, J20
Copyright (c) 2025 dian verawati panjaitan, nunung nuryartono, syamsul hidayat pasaribu, Jann Lay https://creativecommons.org/licenses/by-sa/4.0
Human Capital as a Catalyst for Income Convergence: Evidence from ASEAN-8 Countries
Research Originality: This study takes a novel approach to analyzing the impact of human capital on income convergence in ASEAN-8 countries by comparing three indicators. This comparative analysis provides a more comprehensive understanding of human capital dynamics in ASEAN's economic convergence. Research Objectives: This study investigates the impact of human capital on income convergence by applying the concept of β-convergence to the ASEAN-8 countries. Research Methods: The analysis of β-convergence is based on the basic and augmented Solow growth models. The estimation is conducted using static and dynamic panel data regression from 1995 to 2019. Empirical Result: The results reveal the existence of absolute and conditional β-convergence in ASEAN-8 countries, suggesting that poor countries grow faster than rich countries, with human capital playing a crucial role in this process. Human capital, measured by average years of schooling, tertiary gross enrolment ratio, and HCI, are important factors that significantly increase income convergence. Implications: ASEAN-8 governments need to establish policies that enhance human capital, particularly in education, by increasing educational attainment and the rate of return to education. JEL Classification: E24, O47, C13 How to Cite: Suprayitno, A. W., & Gitaharie, B. Y. (2025). Human capital as a Catalyst for Income Convergence: Evidence from ASEAN-8 Countries. Etikonomi, 24(1), 265 – 284. https://doi.org/10.15408/etk.v24i1.41571.
Copyright (c) 2025 Aziz Wahyu Suprayitno, Beta Yulianita Gitaharie
Orchestrating Digital Economy to Foster Economic Resilience of Smart Cities: The Soft System Approach
Research originality: This study provides new practical knowledge on the digital economy model and strategy to drive the resilient economy of smart cities. Research objective: This study aims to develop a digital economy management model for smart cities, a resilient economy framework for smart cities, and digital economy strategies for smart cities. Research methods: This study employed a soft system methodology (SSM)-action approach by involving 30 digital economy and smart city experts from Jakarta, Bandung, Semarang, Surabaya, Banyuwangi, and Makassar. Empirical result: This study has successfully developed the digital economy model for smart cities by which digital technology, digital services, and digital finance are the keys. The resilient economy of smart cities is primarily characterized by economies of scale, economic structure, and economic stability. Moreover, the strategies should mainly focus on developing infrastructure and application, digital governance and policy, and digital society. Implication: The policy maker must consider critical policy interventions of the digital economy model and economic resilience goals, including budget priorities to the key digital economy strategies. JEL Classification: M21, O14, O18, P25, R11 How to Cite: Subkhan, F., Maarif, M. S., Rochman, N. T., & Nugraha, Y. (2025). Orchestrating Digital Economy to Foster Economic Resilience of Smart Cities: The Soft System Approach. Etikonomi, 24(1), 315 – 334. https://doi.org/10.15408/etk.v24i1.39224.
Copyright (c) 2025 Farid Subkhan, Mohammad Syamsul Maarif, Nurul Taufiqu Rochman, Yudhistira Nugraha
The Generational Interest Differences in Cash Waqf Insurance
Research Originality: Cash waqf insurance is underexplored in Islamic finance, offering a unique lens for study. This research addresses the gap by examining how knowledge, perceived fairness, and perceived usefulness influence attitudes and behavioral intentions toward cash waqf insurance among Generation Z, Millennials, and Generation X. Research Objectives: The study aims to assess the impact of these factors on shaping attitudes and intentions toward cash waqf insurance. Integrating these factors into the Theory of Planned Behavior (TPB) optimizes public understanding and fosters positive engagement on cash waqf. Research Method: 437 data sets were collected from respondents across three generations and analyzed using Partial Least Squares- Structural Equation Modeling (PLS-SEM) and multi-group analysis (MGA). The study evaluates the direct effects of knowledge, perceived fairness, and perceived usefulness on attitudes, behavioral intentions, and generational differences in these relationships. Findings: Knowledge significantly affects attitudes for Gen Z and Millennials, but not Gen X. Perceived fairness strongly influences Gen X and Gen Z, but not Millennials. Perceived usefulness is a key factor across all generations, with the highest impact on Millennials. Implications: The findings highlight the need for targeted educational campaigns for younger generations and fairness-based strategies for older cohorts. Policymakers and institutions can use these insights to enhance engagement with cash waqf insurance products. JEL Classification: G22, Z12, C38 How to Cite: Patriana, E., Aisyah, M., & Al Arif, M. N. R. (2025). The Generational Interest Differences in Cash Waqf Insurance. Etikonomi, 24(1), 299 – 314. https://doi.org/10.15408/etk.v24i1.41731.
Copyright (c) 2025 Muniaty Aisyah, Ela Patriana, Mohammad Nur Rianto Al Arif
The Role of Banking Credit and Innovation Technology in Deindustrialization in Indonesia
Research Originality: This study contributes to the literature by being the first to investigate the cause of deindustrialization from the production side, considering banking credit and innovation technology by Kaldor’s Second Law, specifically focusing on a regional level in Indonesia. Research Objectives: To investigate the impact of banking credit and innovation technology on deindustrialization on a regional level in Indonesia. Research Methods: This research uses using panel data model on 34 provinces from 2017-2022 and a Fixed Effect Model (FEM) with a Seemingly Unrelated Regression (SUR) method, incorporating other control variables was used. Share of bank credit to the manufacturing industry is used as a proxy for bank credit, while internet usage is used as a proxy for innovation technology. Empirical Results: The results showed that deindustrialization occurs in Indonesia even at the regional level. Banking credit and innovation technology are key factors driving the increase in GVA’s share of the manufacturing industry in Indonesia. Prioritizing the quality of workers and improving international trade could also effectively increase the GVA share of the manufacturing industry. Implications: This study offered valuable insights into designing and implementing capital policy strategies and equalizing internet access as an accelerator of innovation in the context of technology improvement to increase the manufacturing industry's GVA share. JEL Classification: O14, O11, R58 How to Cite: Budiasih., & Eliezer, W. R. (2025). The Role of Banking Credit and Innovation Technology in Deindustrialization in Indonesia. Etikonomi, 24(1), 285 – 298. https://doi.org/10.15408/etk.v24i1.38755.
Copyright (c) 2025 Wisly Ryan Eliezer, Budiasih Budiasih
Role Strategic Management and Maqasid Sharia Toward Islamic Cooperative Performance
Research Originality: The study of strategic management and maqasid sharia in Islamic cooperatives is scarce. This study's originality includes maqasid sharia and decision-making styles in the framework of strategic management. Research Objectives: This study aims to determine the roles of strategic management, maqasid sharia, and decision-making style in the performance of Islamic cooperatives and to improve and embed Islamic values in organizations. Research Methods: Questionnaires were distributed to 124 employees of Islamic-cooperative. Furthermore, the study uses structural equation modelling to analyze the questionnaires data from respondents. Empirical Results: The study found that strategic management and organizational performance statistically affect financial performance. Meanwhile, the maqasid sharia and dependent decision-making style have statistically significant indirect effects on financial performance through strategic management and organizational performance. Implications: This study supports the implementation of Maqasid Sharia as the baseline for strategic management. This policy aims to improve the performance of Islamic cooperatives within the limits of Islamic principles. Stakeholders can elaborate on the policy to strengthen strategic management and Maqasid Sharia's implementation. JEL Classification: M21, L21, G40 How to Cite: Amar, F., Sumardi, S., & Nugraha, D. P. (2025). Role Strategic Management and Maqasid Sharia Toward Islamic Cooperative Performance. Etikonomi, 24(1), 247 – 264. https://doi.org/10.15408/etk.v24i1.44588.
Copyright (c) 2025 Faozan Amar, Sumardi Sumardi, Deni Pandu Nugraha
Determinant of Earnings Response Coefficient with Sales Growth as Moderating
Research Originality: This study provides a new perspective by including the less explored sales growth as a factor that could potentially strengthen or weaken the relationship between earnings and market response. Investigating sales growth is crucial, as it enhances investor perceptions of revenue growth, a key indicator of corporate success. Research Objectives: This study analyzes the factors that affect earnings response coefficients in basic material and industrial companies listed on the Indonesia Stock Exchange in 2020–2022. Research Methods: This study uses secondary data that consisted of 76 companies with 228 observations in the basic material and industrial sectors listed on the Indonesia Stock Exchange from 2020 to 2022. This research uses multiple linear regression analysis and the data distribution is panel data. Empirical Results: The findings show that free cash flow has a positive effect on the earnings response coefficient, and systematic risk has a negative effect. Capital expenditure does not affect the earnings response coefficient. Sales growth, as moderation, can weaken systematic risk on the earnings response coefficient. Implication: This study had theoretical implications for examining the theory related to the earnings response coefficient. Practically, it provided investors with an overview of earnings quality, as shown by capital expenditure and free cash flow. JEL Classification: L6, D21, G10 How to Cite: Pramesti, I. G. A. A., & Murwaningsari, E. (2025). Determinant of Earnings Response Coefficient with Sales Growth as Moderating. Etikonomi, 24(1), 233 – 246. https://doi.org/10.15408/etk.v24i1.38165.
Copyright (c) 2025 Sistya Rachmawati, I Gusti Ayu Asri Pramesti, Etty Murwaningsari
Interacting labour force and Human Capital Development Effects on Manufacturing Sector Productivity
Research Originality: The adoption of technology in the industrial world requires a high-quality workforce. This research provides a novelty by testing human capital development against the output of the manufacturing industry. Research Objectives: This study analyzes the interactive impact of the industrial labor force and human capital development on manufacturing sector output in the West African Sub-Region from 1989 to 2022. Research Methods: The study adopted an ex post facto research design. The data used for analysis was sourced from the World Development Indicator (WDI), and the Panel ARDL method was employed to investigate the interactive impact of industrial labor force and human capital development on manufacturing output.. Empirical Results: The results suggest that labor force and human capital had an interactive negative, insignificant impact on manufacturing output in the short run, while in the long run, the interaction of labor force and human capital had a significant favorable influence on the manufacturing sector's output. The composite human capital index had no significant impact on output in the manufacturing sector in both the short run and the long run. Implications: Policymakers should focus on developing initiatives that will enhance the labor force's skill sets and align them with the needs of the manufacturing sector. JEL Classification: J21, O14, O55 How to Cite: Babasanya, A. O., Okuneye, B. A., & Amaefule, J. N. (2025). Interacting Labor Force and Human Capital Development Effects on Manufacturing Sector Productivity. Etikonomi, 24(1), 221 – 232. https://doi.org/10.15408/etk.v24i1.38648.
Copyright (c) 2025 Adeyemi Olayiwola BABASANYA, Babatunde Adekunle OKUNEYE, Joseph Nwabueze AMAEFULE
Effects of Sociographic and Personal Factors on Food Purchasing in Traditional Markets
Research Originality: The current literature lacks a structured analysis of how interactions between lifestyle factors and sociodemographic changes impact food purchasing behavior in traditional markets. By analyzing these factors, businesses can optimize product selections, refine marketing strategies, and enhance customer engagement to align with the diverse preferences and requirements of their target market, adapting to both current trends and future changes. Research Objectives: This study employs a psychodynamic approach, the theory of personality traits, two-way physical and perceptual interactions, and household assumptions to examine how sociographic lifestyle, household characteristics, and personality traits influence food purchasing behavior. Research Methods: The mixed methods, which included in-depth interviews with 183 household customers, utilized non-probability sampling and partial least squares structural equation modeling. Empirical Results: Increased food purchasing behavior is caused by changing sociographic lifestyles rather than personality traits and household characteristics. A greater sociodemographic lifestyle, personality traits, and household characteristics correspond to increased friendship, values, responsible spending, and household size. Implications: Food safety regulations must be implemented effectively, which includes appointing market management authorities, as agencies in the informal food sector are often underfunded and unregulated. JEL Classification: D1, E21, L66, R2 How to Cite: Nurliza. (2025). Consumers in Traditional Markets: Sociographic Lifestyle, Household Features, and Personality Traits. Etikonomi, 24(1), 205 – 220. https://doi.org/10.15408/etk.v24i1.38288.
The Digital Revolution: Can Yogyakarta's Micro-Enterprises Ride the Wave?
Research Originality: This study enhances the comprehension of micro-enterprise owners who have transitioned to entrepreneurship by investigating their enhanced skills and flexibility in using digital technology. Research Objectives: This study examined the factors that influence technology adoption by business owners with experience in Microenterprises (MIEs). It also explored how digital technology's adoption mediates the relationship between these factors and the firm's performance. Research Methods: This study uses quantitative Path Analysis to examine the causal links between variables that impact the performance of micro-enterprises (MIEs) in Yogyakarta, Indonesia. A random sample of 461 MIE owners was selected. Empirical Results: The research found that micro-enterprises with organizational readiness and strategic orientation are more likely to use digital technology than those that do not adapt to or follow modern times. The cause was the high strategic orientation of Yogyakarta's MIEs. Implications: This study's empirical implication is to assess MIE development programmes in terms of digital technology usefulness within the context of business creation and technological transfer through MIEs in Yogyakarta. JEL Classification: C12, C31, O31 How to Cite: Fridayani, H. D., Chiang, L. C., Mahendro, A. B., & Agustin, M. S. (2025). The Digital Revolution: Can Yogyakarta’s Micro Enterprise Ride the Wave. Etikonomi, 24(1), 191 – 204. https://doi.org/10.15408/etk.v24i1.37973.
Copyright (c) 2025 Helen Dian Fridayani, Li Chun Chiang, Aldryan Bagaskara Mahendro, Martalia Susantiana Agustin