This study aimed to analyze the existence and effect of the Covid-19 pandemic on the stock market over the long-term and short-term in Indonesia. The study followed Krugman’s (1979) approach stating the pandemic crisis problems have the potential to decrease the performance of the international balance of payments which will ultimately lead to uncertainty in the market. The research method was the Error Correction Model (ECM) with stock markets as an endogenous variable; and exchange rate, inflation, interest rate, foreign stock markets, commodity price, and pandemic as exogenous variables. The pandemic indicator was measured by total accumulative cases of Covid-19 per day in Indonesia. Using ECM, the result showed that foreign interest rates and commodity prices positively affect the stock markets. Conversely, the exchange rate has a negative effect on the stock markets. However, the estimation fails to reflect the significant impact of the Covid-19 pandemic in the short-term, but it has a negative effect on stock markets in the long-term. This result implies that the higher total accumulative cases of Covid-19 has been the source of Indonesia’s stock market weakness in the long-term. To the best of the author’s knowledge, this study is the first to examine Indonesia’s stock market’s pandemic impact between the short term and long term.
Economic growth, environmental quality, and human quality affect each other. The economic growth which is driven primarily by industrialization and trade openness, degrades the environment. Meanwhile, the growth and environmental quality can affect human quality. This research analyzes those relationship by develop two panel econometrics models for 31 provinces in Indonesia during 2010-2015. The first model examines how the environmental quality, economic growth, poverty rate, population density, and global trade affect human development index as representation of human quality. The second model analyzes the effect of economic growth, human quality, population density, poverty, and global trade on environmental quality. This study finds that the economic growth, environmental quality and globalization affect human quality in Indonesia positively, while the poverty and population density affect negatively. The human quality have positive effect on environmental quality in Indonesia, while the economic growth, global trade, poverty and population density variables have the negative effect.
The developments of the world trade requires the improvement of the competitiveness of products, including agricultural commodities. At the regional level, Indonesias agricultural commodities face the ASEAN free market competition. This study aims to identify and examine the competitiveness of Indonesian exports of several agricultural commodities in the international market by employing the index of competitiveness of trade specialization by trade specialization index (TSI), and the index of market penetration, by revealed comparative advantage (RCA). This study observed the HS 4 digit agricultural commodities, along 2011-2015. The study finds that the index of commodity trade specialization of estate crops sub-sector is in a stage of maturation of the world trade, or it has a very strong competitiveness. The food crops sub-sector stand on the introduction stage of the world trade or it has low competitiveness, or in other words, Indonesia is a net importer of the sector commodities. Although some of commodities have the strong competitiveness, but on the other hand, they do not have a strong comparative advantage. This is shown by the RCA value that less than 1. It means that a part of agricultural commodities, namely food crops, horticulture and estate, are still import oriented.The developments of the world trade requires the improvement of the competitiveness of products, including agricultural commodities. At the regional level, Indonesias agricultural commodities face the ASEAN free market competition. This study aims to identify and examine the competitiveness of Indonesian exports of several agricultural commodities in the international market by employing the index of competitiveness of trade specialization by trade specialization index (TSI), and the index of market penetration, by revealed comparative advantage (RCA). This study observed the HS 4 digit agricultural commodities, along 2011-2015. The study finds that the index of commodity trade specialization of estate crops sub-sector is in a stage of maturation of the world trade, or it has a very strong competitiveness. The food crops sub-sector stand on the introduction stage of the world trade or it has low competitiveness, or in other words, Indonesia is a net importer of the sector commodities. Although some of commodities have the strong competitiveness, but on the other hand, they do not have a strong comparative advantage. This is shown by the RCA value that less than 1. It means that a part of agricultural commodities, namely food crops, horticulture and estate, are still import oriented.
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