Implementation of investment and working capital financing allocated by banks towards the added GDP, labors, and welfare in four regencies in Madura
Journal Title: Journal of Economics, Business, & Accountancy Ventura - Year 2015, Vol 18, Issue 1
Abstract
This study investigates the implementation of investment financing absorption and private bank sectors working capital to increase GDP, employment, and welfare of the four counties in Madura island (Bangkalan, Sampang, Pamekasan, Sumenep). This is the development of a previous study. This explanatory study is based on the model devel-opment concept or theory with Path Analysis through the data normality, multicolli-nearity, and heteroscedasticity test as well as causality. The data were taken from Bank Indonesia, Investment Coordinating Board, and the Central Bureau of Statistics. This is a time series data of 2002 to 2006. It shows that the financing of investment to GDP has significant and negative effect, financing of investment to labor absorption has signifi-cant and negative effect; financing working capital to GDP has significant and positive effect; financing of working capital to labor absorption has significant and negative effect; GDP in the labor market has no significant nor positive effect; GDP for the welfare effect, it has positive but not significant effect; employment in the welfare has a significant and positive effect. The direct effect or indirect implementation of financing from banks to finance investments and working capital to the entrepreneurs has increasingly a significant and positive effect. Absorption has dominated world finance working capital financing, following the least consumption and investment. Thus, it was natural that the implementa-tion of the investment credit and working capital has a significant and positive effect on economic growth, absorption of labor, and welfare in all four counties in Madura.
Authors and Affiliations
Didin Fatihudin, Sjamsul Hidajat, Ma'ruf Sya'ban
Keywords
Related Articles
- EP ID EP470308
- DOI 10.14414/jebav.v18i1.379
- Views 70
- Downloads 0
The determinant effect of industry sub-sectors on the gross regional domestic product in Maluku
The development that takes place in a province as a whole and sustainable society has improved the economy. The achievement of development outcomes are strongly felt by society as the aggregate of development of 11 distr...
The influence of risk perception, risk tolerance, overconfidence, and loss aversion towards investment decision making
This study aims to examine the effect of risk perception, risk tolerance, overconfidence, and loss aversion on investment decision making. The sample in this study were workers in Surabaya and Jombang, East Java. There w...
Publicness and strategic planning of public institutions: Evidence from Indonesia
Strategic planning has become a very common practice in public organizations. Research shows the positive impacts of strategic planning on the firm performance. This study examines the impacts of publicness on planning f...
The influence of product differentiation strategy on operational performance at Small and Medium Enterprises (SMEs) in South Sulawesi, Indonesia
In the last decade, many researchers have conducted studies on the efforts to improve corporate performance through the stimulation of specific business strategy approach. This study aims to analyze the effect of product...
Is the effect of a political event more pronounced for governmentcontrolled firms?
This study investigates market reaction to a political event, which is the presidential election of Republic of Indonesia in 2014 by studying 387 publicly-traded firms in the Indonesia Stock Exchange. It employs event st...