nep-isf New Economics Papers
on Islamic Finance
Issue of 2021‒04‒12
seven papers chosen by
Mohamed Mohamed Tolba Said

  1. Measurement of Competitiveness and Market Concentration of Indonesian Banking Sharia By , Paulina
  2. Global financial cycles and exchange rate forecast: A factor analysis By Raheem, Ibrahim
  3. Global COVID-19 Pandemic: Prevention and Protection Techniques By Mohajan, Haradhan
  4. Modeling of Poverty Determinants in Sumatera Island (Panel Regression Approach) By Muhammad, Fajar; Zelani, Nurfalah; Septiarida, Nonalisa
  5. Food vs. Food Stamps: Evidence from an At-Scale Experiment in Indonesia By Abhijit Banerjee; Rema Hanna; Benjamin A. Olken; Elan Satriawan; Sudarno Sumarto
  6. The Technology and Knowledge Spillover Effects of FDI on Labour Productivity By Norhanishah Mohamad Yunus
  7. E-Commerce in Turkey and SAP Integrated E-Commerce System By Ahmet Kaya; \"Omer Aydin

  1. By: , Paulina
    Abstract: This study aims: (1) The extent of competitiveness of sharia banking in Indonesia's current economic development; (2) How far the strength of the sharia banking market in Indonesia today. The research conducted to measure the competitiveness of sharia banking in Indonesia and market forces encountered, using the observation period 2010-2016, and the data used is time series and cross section data. The research design used in research is quantitative research, by using model Lerner Index, PR-H Statistics Model, and multiple regression. Based on the results of the study, 1. Using the Lerner index model, for 10 Indonesian sharia banks, especially murabahah products with observation period 2010 - 2016, shows that the competitiveness of Indonesian sharia banks is still very low. The Lerner index for each sharia banks with competitiveness of murabahah products is Bank Mega Sharia, Bank BRI Sharia, Maybank and BSM. As for other sharia banks is still very low; 2. The measurement of market forces using the PR-H Statistics model, murabahah products of Indonesian sharia banks during 2010-2016 fall into the category of the monopolistic competition market. This indicates that, the murabahah product of each sharia banks is basically almost the same, only slightly differentiated by the deficited products in such a way between one bank and another bank; 3. Regression result model of factors affecting competitiveness, only ROA variable that influence to competitiveness, it shows that ROE variable, capitalization and efficiency not become determinant of competitiveness of a bank, especially for murabahah product.
    Date: 2021–04–04
  2. By: Raheem, Ibrahim
    Abstract: This study applies portfolio balance theory in forecasting exchange rate. The study further argues for the need to account for the role of Global Financial Cycle (GFCy). As such, the first stage of the analysis is estimate a GFCy model and obtain the idiosyncratic shock. Next, we use the results in the first stage as a predictor for exchange rate. The study builds dataset for 20 advanced and emerging countries from 1990Q1- 2017Q2. Among other things, there are three important results to note. First, our approach to forecast exchange rate is able to beat the benchmark random walk model. Second, the best prediction is made at short term forecasting horizons, i.e. 1 and 4 quarters forecast ahead. Third, the performance of the early sample size outweighs that of the late sample size.
    Keywords: Exchange rate; Factor models; Global financial cycle; Forecasting
    JEL: E3 E37 F31
    Date: 2020
  3. By: Mohajan, Haradhan
    Abstract: The COVID-19 is an infectious disease caused by severe acute respiratory syndrome coronavirus 2 (SARS-COV-2). It has been identified as the causative agent of the viral pneumonia outbreak in Wuhan, China, at the end of 2019. It has a high human to human transmission capability and primarily targets the human respiratory system. Healthcare providers to common people are in high risks of the contamination of this fatal disease. It spreads person to person through respiratory droplets that produced during talking, coughing and sneezing. It is associated with severe and fatal respiratory disease in humans. At present it becomes great global public health concern. On 11 March 2020, the WHO declared the global COVID-19 outbreak as a pandemic. The COVID-19 pandemic has entered in a very dangerous phase in April and May 2020, and the severity is increasing day by day. On 26 July 2020, about 216 countries and territories are infected worldwide; total global infections become more than 16.3 million and total recovered about 9.9 million with total deaths 648,477. The disease have not abolished even in the 2021. On 27 March 2021, the disease spread up to 219 countries and territories globally; total confirmed deaths become 2,783,591, total confirmed cases 127,025,229, with total recovery 102,370,710. The paper discusses the social, economic, and health impacts in the world's poorest countries due to COVID-19 pandemic outbreak. The study also presents the current economic situation of the world and analyses the potential consequences on global economy. An attempt has been taken here to create consciousness among the common people to reduce the fatality of this killer disease. From the beginning of 2021, COVID-19 vaccines are distributed worldwide and all nations are united to abolish the virus completely.
    Keywords: COVID-19, SARS-CoV-2, SARS-CoV, MERS-CoV, Wuhan, pandemic, vaccines, variants
    JEL: I1 I12 I15
    Date: 2021–01–10
  4. By: Muhammad, Fajar; Zelani, Nurfalah; Septiarida, Nonalisa
    Abstract: This paper examines to determine whether there is an effect of the human development index (HDI), the open unemployment rate, economic growth, and regional GRDP per capita on poverty levels in Sumatera Island. In general, the trend of the poverty rate by the province in Sumatera decreased during 2010-2019 period, however, there are five provinces which on average have a poverty rate above 11 percent (above the national average poverty rate), namely Aceh, Bengkulu, Lampung, South Sumatera, and North Sumatera. This study used a dynamic panel approach with the Random Effect Model (REM). The data source was obtained from Statistics Indonesia (BPS) for the period 2010-2019. The results showed that the HDI variables and economic growth had a negative and significant effect on poverty levels in Sumatera Island. Meanwhile, the variables of the open unemployment rate and regional GDP per capita have a negative and insignificant effect on poverty levels in Sumatera Island. Simultaneously, it is concluded that the independent variables overall affect the poverty level. The coefficient of determination is 65.6370 percent, which means that variations in the level of poverty can be explained by the independent variables by 65.6370 percent and the remaining 34.3630 percent is explained by other factors out of the model.
    Keywords: Determinant, Model, Poverty, Sumatera
    JEL: C51 C52 C54 I32
    Date: 2020–12–08
  5. By: Abhijit Banerjee; Rema Hanna; Benjamin A. Olken; Elan Satriawan; Sudarno Sumarto
    Abstract: Governments seeking to provide food assistance have a choice between providing in-kind food directly to beneficiaries, or providing vouchers that can be used to purchase food on the market. To understand the differences between these policies, the Government of Indonesia randomly phased in the transition from in-kind delivery of subsidized rice to approximately equivalent vouchers usable to buy rice and eggs across 105 districts comprising over 3.4 million beneficiary households. We find the transition led to substantial changes in the allocation of aid in practice. The vouchers provided concentrated assistance to targeted households, who received 45 percent more assistance in voucher areas than in in-kind districts. As a result, for households in the bottom 15 percent at baseline, poverty fell by 20 percent. Vouchers also allowed households to purchase higher-quality rice, and led to increased consumption of egg-based proteins. We find vouchers have little effect on aggregate rice prices, although we observe modest price increases in remote villages. Overall leakage from the program was not affected, but the administrative costs of benefits delivery substantially fell. In short, the results suggest that the change from in-kind food aid to vouchers led to substantial impacts on poverty through the way it changed how programs were implemented on the ground.
    JEL: I38 O15
    Date: 2021–04
  6. By: Norhanishah Mohamad Yunus (School of Distance Education, Universiti Sains Malaysia, Malaysia Author-2-Name: Noraida Abdul Wahob Author-2-Workplace-Name: Unit Peneraju Agenda Bumiputera, Prime Minister's Department,47810, Petaling Jaya, Selangor, Malaysia Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: Objective - The purpose of this study is to investigate both "technology" and "knowledge" effects of foreign direct investment (FDI) on labour productivity in the medium-high manufacturing industries' classification in Malaysia. Methodology/Technique - This study employs a Seemingly Unrelated Regression (SUR) estimator. Findings - The results conclude that diffusion of knowledge, which increases labour productivity, is greater via "learning effects" as compared to the investor countries' capital investments in the medium-high manufacturing industries. Novelty - This study expands the body of knowledge about the benefits of FDI spillovers on labour productivity according to specific investor countries, however, are rarely researched particularly in developing countries and at the industry level. Type of Paper - Empirical.
    Keywords: Foreign Direct Investment; Labour Productivity; Technology Spillovers; Knowledge Spillovers
    JEL: E60 J24
    Date: 2021–03–31
  7. By: Ahmet Kaya; \"Omer Aydin
    Abstract: E-commerce is a kind of shopping by use of the internet. E-commerce, very different from the usual shopping concept, is compatible with today's economic dynamics. E-commerce is becoming an indispensable method with the increase of internet usage. With the use of E-commerce, there are also a number of advantages for companies. On the other hand, SAP is a pioneer and leader in the company resource planning software sector. SAP is very important for large-scale companies. They manage all their processes on SAP and its integration is very important with other related software. In this article, we give brief information on some important aspects of e-commerce and propose a solution for ERP integration of an e-commerce system.
    Date: 2021–04

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