Does rising import competition harm Vietnam’s local firm employment of the 2000s?

Peer to peer (P2P) lending in Indonesia has been growing rapidly, therefore there is the potential for disruptive innovation processes in the financial sector. The aim of this study is to examine the impact of the growth of P2P lending on the growth of bank lending for micro, small and medium enterprises (MSME) and Non-MSME debtors. Separating the scale of the debtor is important, given the initial process of disruptive innovation of reaching areas that are not the incumbent’s main target. The examination was conducted in this study using panel data regression, whereby the examination was done in stages. This was an overall examination without differentiating between the regions, further examination conducted with more detail by separating between the loans inside and outside Java Island. This is because the economic structure in Indonesia is still dominated by the regions in Java, but FinTech is generally able to grow in areas with less developed local economies. The result of this study is consistent overall, Java and outside Java Island, as shows that the growth in P2P lending in Indonesia does not have a significant impact on the growth of bank loans for Non-MSME lending. However, it does have a negative impact on the growth of bank loans for MSME lending. This is in line with the entrant’s disruptive trajectory process by which the entrants enter the competition through an underserved market (niche markets) and not through the main target market of the incumbent (MSME).

Section: Research Methodology and Datamentioning

confidence: 99%

Indonesian Peer to Peer Lending (P2p) at Entrant’s Disruptive Trajectory

Kohardinata

Soewarno

Tjahjadi

2020

“…The control variables used in this study comprised banking deposits consisting of current accounts, savings, and time deposits (DEP), the number of bank offices (NB), and gross domestic product (GDP) in each province. The test in this study used growth because estimates based on growth can capture continuous changes better and reduce the effect of noise that causes bias in coefficients caused by invariant omitted variables bias (Chauhan & Kumar, 2019;Doan et al, 2015;Nguyen et al, 2017). This study uses data from 33 provinces in Indonesia from July 2019 to March 2020, and data from July 2020 to March 2021; The 33 provinces in Indonesia consist of: Yogyakarta, Jakarta, West Java, Banten, East Java, Central Java, Bali, Bengkulu, North Sumatra, West Sumatra, South Sumatra, West Papua, Papua, Lampung, Riau, Riau Islands, Bangka Belitung, Central Sulawesi, North Sulawesi, Southeast Sulawesi, South Sulawesi, West Sulawesi, Gorontalo, West Nusa Tenggara, East Nusa Tenggara, Jambi, Aceh, North Maluku, Maluku, West Kalimantan, East Kalimantan, Central Kalimantan, and South Kalimantan.…”

Section: Research Methodology and Datamentioning

confidence: 99%

Peer-to-Peer Lending (P2p) as Disruptive, but Complementary in Covid-19 Exogenous Shock

Kohardinata,

Suhardianto,

Tjahjadi

2024

The purpose of this study is to examine the effect of P2P lending on bank credit in each type/segment of banking credit consisting of working capital credit, investment credit, and consumer credit in the period before and during the occurrence of the Covid-19 exogenous shock. Examining the effect of P2P lending on various types of bank loans is important because there is no conclusive evidence of whether P2P lending substitutes or complements various conventional bank loans. The Covid-19 pandemic impairs the income of many people and accelerates the use of digital technology in most daily activities including banking. Due to economic contraction during the outbreak, the government requires banks to relax the loan covenants. Therefore, P2P lending that provides flexibility might complement bank loans during the Covid-19 pandemic. The test in this study uses panel regression and is carried out by separating the period before (July 2019–March 2020), and during (July 2020–March 2021) the Covid-19 pandemic. The results show that P2P lending was disruptive for bank loans before the pandemic and turned to be complementary during the pandemic, it might be due to P2P lending flexibility complementing the bank credit relaxation during the pandemic.

“…The use of growth in this study is to indicate the time-differenced specification. It mitigates biases from unobserved characteristics such as time-invariant factors in the province or the island (Doan et al, 2015;Nguyen et al, 2017). Monthly growth of the accumulation of P2P lending (real growth) on each island (Java and Non-Java Island).…”

Section: Research Methodology and Datamentioning

confidence: 99%

Peer-to-Peer Lending Platform: From Substitution to Complementary for Rural Banks

Kohardinata

Suhardianto

Tjahjadi

2020

This study aims to examine the impact of the growth of peer-to-peer (P2P) lending on the growth of rural bank lending. Further, this study investigates the outcome of the partnership agreement between the Rural Bank Association and Financial Technology (FinTech) Association in the last quarter of 2017 on the effect of P2P lending on rural bank lending by analyzing the impact separately in 2018 and 2019. The publicly available data from the Financial Services Authority and Bank of Indonesia were examined using panel data regression. The results show that P2P lending’s growth is a substitute for the growth of the rural bank loan in 2018. However, the partnership between the Rural Bank Association and FinTech Association changed the effect of substitution into complementary in 2019. Moreover, the impact of P2P lending was more prominent in provinces with a higher number of rural banks and regions with lower economic growth. The restricted number of publicly available data becomes the limitation of this study to obtain the best results.