Panel Data Tests Research Articles

Determination analysis of realization in foreign investment: A case in West Java

<p>In 2024, West Java Province aims to boost foreign investment to 250 trillion rupiah, maintaining its leading position in investment realization. This research examines factors influencing foreign investment in West Java, including SMEs (<em>Usaha Mikro, Kecil, dan Menengah</em>-<em>UMKM</em>), expenditure per capita, flood, waste, productive land, and unemployment. Prior strategies focused on direct engagement with foreign investors but neglected other critical determinants. This study investigates key sectors and economic indicators to provide a comprehensive analysis. The data used in this paper is a balanced panel of 27 residences and cities in West Java with an annual period from 2018 to 2022. We choose REM as the best model using panel data tests, including Chow, Hausman, and BPLM. This paper found that SMES, expenditure, productive land, and unemployment significantly positively affect the predictor. On the other hand, how floods and waste are handled has an insignificant effect on the predictor.</p>

The Effect of HDI and Unemployment Rate on Poverty in the Riau Islands

Poverty in the Riau Islands Province will be studied from 2018 to 2023 with a focus on how it affects HDI and unemployment rates. We analyzed secondary data obtained by the Central Statistics Agency (BPS) using quantitative methods in this research which uses a documentation approach. Random Effect Model (REM) was selected as the best estimation model after a series of panel data tests, including Chow, Hausman, and Legrange Multiplier tests. Unemployment has a significant and positive effect on poverty according to this research (coefficient = 3971.224). This means there is an increase of 39% in the underprivileged population for every 1% increase in the unemployment rate. There is a positive and statistically significant correlation between HDI and poverty (r=2086.092), which shows that a 1% increase in HDI means an increase in poverty of 20%. The findings from this study show increasing employment opportunities and improving the quality of human resources as potential efforts to reduce poverty in the Riau Islands Province.

Should the European Union prioritize renewble energy or tackle energy poverty?

Energy poverty is a type of poverty that is not solely based on monetary factors. It has recently been highlighted in the literature alongside the acknowledgment of energy as a key component of sustainable economic growth. Many studies focus on replacing fossil fuels with renewable energy sources to address this issue. This study aims to analyze the impact of renewable energy consumption on energy poverty in the European Union from 1996 to 2020. The study incorporates a control variable, developed using Principal Component Analysis (PCA), to account for economic development. Second-generation panel data tests and the Common Correlated Effects Model are utilized to assess the short and long-term effects. The findings indicate that the control variable had no significant impact on energy poverty during the relevant period. Still, renewable energy consumption had both positive effects in developed countries and negative effects in transition economies. According to the results, energy poverty measures remain a key priority in most of Europe's energy policies. This highlights the significance of ensuring that the underprivileged section of society has access to affordable and sustainable energy sources.

The impact of financial development and energy consumption on ecological footprint in economic complexity‐based EKC framework: New evidence from BRICS‐T region

AbstractThis study investigates the impact of financial development, nonrenewable energy, renewable energy, and trade openness on the ecological footprint from 1990 to 2020 under the new hypothetical imitations of the economic complexity‐induced environmental Kuznets curve (EKC) framework in BRICS‐T economies. After verifying the potential cross‐sectional dependency, this study employed second‐generation panel data tests to estimate the consistent, unbiased, and robust results. The key results of this research discover that the influence of economic complexity increases pollution at the initial stage; however, at the second stage such as the square of economic complexity significantly reduces it, which indicates the confirmation of the EKC hypothesis in these economies. Moreover, financial development and nonrenewable energy consumption significantly increase the level of ecological footprint. In contrast, renewable energy consumption curtails the pollution level in all quantiles. The results provide insight for government and policymakers to diminish the ecological footprint in BRICS‐T economies through clean energy technologies and diversification, such as carbon storage and capture.

The Influence of Population and Government Expenditures on Original Regional Income (PAD) of North Sumatra Province

This study aims to explore the influence of population and government expenditure on local own-source revenue (PAD) in North Sumatra Province. Local own-source revenue (PAD) is a key element in the implementation of regional autonomy, involving sources of revenue from taxes, levies, management of regional assets, and other legal revenues. This study applies quantitative research methods with a focus on data published by BPS (Central Bureau of Statistics) related to population, government expenditure, and local own-source revenue in North Sumatra Province during the 2018-2022 period. The purposive sampling technique was used to select 45 samples that were considered to represent specific characteristics of the target population, in accordance with the research objectives. Data collection was carried out through the documentation method, utilizing secondary data sources from literature and manuals. Data analysis was conducted using Eviews 12 Software with the application of Panel Data Tests such as the Chow Test and Hausman Test. Data related to PAD in North Sumatra Province shows a decline in 2021, influenced by policies to limit business operations during the COVID-19 pandemic, especially in the hospitality, restaurant and entertainment sectors. An increase in population in a region is generally considered to increase PAD revenue through increased consumption and economic activity. However, data analysis shows that population growth does not always have a positive impact on PAD in all regions in North Sumatra.

ANALISIS RISIKO PROFIL DAN PENGARUHNYA TERHADAP PROFITABILITAS PADA BANK BUMN

The purpose of this study is to analyze the risk profile and its impact on profitability at state-owned banks. The sampling technique used in this study is Nonprobability Sampling, namely Purposive Sampling. The population and samples used in this study are state-owned banks, namely Bank BNI, Bank Mandiri, Bank BRI, and Bank BTN by taking data from annual financial reports published from 2017 to 2022. The data analysis technique used is descriptive statistical analysis and statistical analysis. statistics. Descriptive statistical analysis was used to describe the variables in this study, namely Non Performing Loans (NPL), Loan to Deposit Ratio (LDR) and Return on Assets (ROA). The statistical analysis used was multiple linear regression panel data tests which were first tested for model selection, then added the classic assumption test as a condition for using regression analysis. Furthermore, F statistical tests and t statistical tests (hypothesis testing) were carried out, the coefficient of determination. The results of this study are that NPL or non-performing loans have no significant negative effect on ROA at state-owned banks. From the NPL value, it can also be concluded that 3 state-owned banks, namely BNI, Mandiri and BRI, have relatively good NPL levels, meaning that the risk of bad credit is low, except for BTN banks. As for the LDR or Loan to Deposit Ratio, there is no significant effect on ROA at government banks.

Firm-level political risk and credit markets

We take advantage of a new composite measure of political risk (Hassan et al., 2019) to study the effects of firm-level political risk on private debt markets. First, we use panel data tests and exploit the redrawing of US congressional districts to uncover plausibly exogenous variation in firm-level political risk. We show that borrowers’ political risk is linked to interest rates set by lenders. Second, we test for the transmission of political risk from lenders to borrowers. We predict and find that lender-level political risk propagates to borrowers through lending relationships. Our analysis allows for endogenous matching between lenders and borrowers and indicates the presence of network effects in diffusing political risk throughout the economy. Finally, we introduce new text-based methods to analyze the distinct sources of political risk to lenders and borrowers and provide textual evidence of the transmission of political risk from lenders to borrowers.

PERAN GOOD CORPORATE GOVERNANCE TERHADAP KECURANGAN LAPORAN KEUANGAN: PERSPEKTIF FRAUD PENTAGON PADA KEMENTERIAN DAN LEMBAGA PEMERINTAH

This study aims to examine the impact of fraud pentagon model elements on financial statement fraud and analyze the role of good corporate governance in moderating fraud pentagon model elements on fraudulent financial statements in government ministries and agencies in 2019-2021. The sample was selected based on the purposive sampling method so that 81 Ministries and Government Agencies were obtained with 243 observational data. Based on the panel data test, the results obtained show that rationalization has a significant impact on indications of fraud in financial statements. On the other hand, the factors of pressure, opportunity, competence, and arrogance cannot have a significant impact. The implementation of Good Corporate Governance is proven to moderate the effect of rationalization on the possibility of fraud in financial reports

Role of economic uncertainty, financial development, natural resources, technology, and renewable energy in the environmental Phillips curve framework

Given the imperativeness of degenerated environmental quality, it is crucial to probe the impact factors of carbon dioxide emission (CE). Hence, this empirical outlet explores whether economic policy uncertainty (EPU), renewable energy (RENE), natural resources (NRR), financial development (FD), technological advancement (TIN), and employment level (EMP) impact CE in BRICST countries for the period 1990–2020. In addition to this, the study investigates whether EPU mollifies the RENE-CE nexus. To that end, we make use of the second-generation panel data tests and panel quantile regression (PQR) models. The outcomes from PQR approach manifest that RENE and EPU wane CE across all quantiles, whereas FD and EMP upsurge it. The findings also elucidate that NRR and TIN have a heterogeneous impact on CE across the quantiles. In addition to this, EPU inhibits the RENE-CE relationship at all quantiles. Thus, we provide a matrix of policy suggestions to achieve SDG-13 (Climate Action) in BRICST countries. For instance, policymakers should encourage RENE and TIN to curb emissions. Similarly, policymakers have to keep in mind the detrimental environmental effect of low EPU. Thus, special measures need to be taken during the low EPU regime.

Pengaruh Inflasi, Suku Bunga, dan Nilai Tukar Terhadap Harga Saham Perusahaan Pertambangan Periode 2019-2021

The development of world capital markets has a positive impact on the country's economy. In the capital market there is stock trading which helps companies in obtaining capital. The price of shares that are traded has different price changes that can go up or down. The movement of stock prices every day increases or decreases. Factors that can cause price changes are macroeconomic conditions, such as economic inflation, changes in exchange rates and interest rates. The purpose of this research was to describe the effect of exchange rates, interest rates and inflation on the value of stock prices in a mining business entity for the 2019-2021 period. In the research conducted, there are several supporting data, namely secondary data, which is data obtained from an official website, such as the website of the Central Statistics Agency (BPS), IDX, and BI. Data were obtained using a purposive sampling technique with criteria for 2019 to 2021. Testing variable data in this study used the eviews 12 application. The test used was the panel data test, in the form of a partial test (t test), simultaneous test (f test), and a coefficient of determination (R2). Then in carrying out a research conducted, it is known that inflation has an effect but not significantly on the share price of a mining business entity, interest rates do not have a significant effect on the share price of a mining company, and the exchange rate has a significant effect on the share price of a mining company. 
 Keywords: Inflation, Interest Rates, Exchange Rates, Stock Prices

Dampak Perubahan Laba ditinjau dari Return on Equity (ROA), Debt Equity Ratio (DER) dan Total Asset Turn Over (TATO) Pada Perusahaan Manufaktur di Indonesia

This study aims to determine the impact on earnings changes in terms of several aspects, namely return on equity (roe), debt to equity ratio (der), and total assets turn over (tattoos) in manufacturing companies on the Indonesian stock exchange in 2018-2021. This study uses a qualitative approach with secondary data sources obtained from the company's financial statements published on www.idx.co.id. The sampling technique in this study is the number of objects of companies listed on the IDX, where as many as 8 companies with data for 4 years so that the sample size is 32 data. The analysis carried out in this study is a panel data test which includes descriptive statistical analysis, Common Effects Model, Fixed Effects Model, Chow Test, Random Effects Model Test and Hausman Test (Software used to conduct this research is eviews version 10. Based on the results of the study it can be concluded that return on equity (roe), debt to equity ratio (der), and total assets turnover (tattoo) have partial and simultaneous effect on earnings changes, where the research that has been carried out obtains data taken based on the Common Securities Model

Environmental, social, governance disclosure and corporate sustainable growth: Evidence from China

The ultimate goal of business development is to achieve sustainable corporate growth and maximize shareholder wealth. Whether and how ESG disclosure affects sustainable growth needs to be further explored. Combining stakeholder theory and signaling theory, a panel data test based on 300 listed companies in Shanghai and Shenzhen in China finds that ESG disclosure can positively promote sustainable growth compared with companies that do not disclose ESG disclosure, and the higher the level of ESG disclosure, the greater the promotion effect on sustainable growth; and ESG disclosure further enhances sustainable growth by reducing financing constraints and enhancing human capital. In addition, the positive relationship between ESG disclosure and corporate sustainable growth is particularly pronounced for non- environmentally sensitive industries and when external environmental uncertainty intensifies. Our findings enrich the research related to ESG disclosure, provide motivation to motivate firms to consciously practice ESG disclosure from a sustainable growth perspective, and contribute to a more detailed understanding of the mechanisms of ESG disclosure and sustainable corporate growth.

Pricing and Promotions in Retail Tea Market in Argentina

Argentina has long been a tea provider with diverse types and variants dispatched to the internal market and abroad. The drink and its variants are a popular complement to other infusions such as yerba mate and coffee. We scraped an extensive online price database for analyzing the tea products offered in local supermarkets. We use a panel data modeling approach and test if attributes are associated with pricing and price discounting in the retail tea market. We control the estimations for time effects and exchange rate metrics because of the unstable macroeconomics. Time effects are highly significant and robust across estimations: we detect weekly, seasonal patterns, and yearly cycles. Attributes such as brand and variety play a weaker role in pricing but a stronger one in promotions.

Renewable energy consumption, environmental degradation and economic growth: the greener the richer?

Climate change presents the greatest challenge facing all countries of the world in the new millennium. Among others, objective 13 of the Sustainable Development Goals (SDGs) aims at adopting urgent measures to contrast climate change and its consequences. Part of the decline in the global growth of emissions has been the increase in using renewable energies. In this context, the relationship among GDP, CO2 emissions, and renewable energy use has been investigated in this study, starting from a systematic review that has noticed the presence of three clusters focused on: CO2 emissions, GDP, and energy consumption. Despite the current level of interest in examining the relationship among these variables, there have been few empirical studies. To fill this knowledge gap, this paper has been focused on the Scandinavian countries, where the use of renewable energies has steadily increased, developing novel panel analysis estimates. Using a dataset of these five economies over a 1990–2018 time period, several panel data tests have been carried out, in order to robustly assess the causality issue among renewable energies, CO2 emissions, and GDP. The results of the empirical analysis imply that renewable energy consumption is a useful policy instrument to reduce CO2 emissions without adversely affecting GDP growth. The main implications have been that the decrease of CO2 emissions, by increasing renewable energy use, can guarantee high levels of energy efficiency and economic growth. These empirical findings help design innovative energy policy roadmaps and accelerate the ecological transition through the promotion of renewable energy and the reduction of GHG emissions.

Being an emerging economy: To what extent do geopolitical risks hamper technology and FDI inflows?

This paper evaluates the impact of geopolitical risk (GPR) on total factor productivity (TFP) and the inflows of foreign direct investment (FDI) for a group of 18 emerging economies between 1985 and 2019. Based on Granger causality panel data tests, we show that the trajectories of these variables cannot be neglected to explain one another. To account for cross-equation influence, we estimate seemingly unrelated regression (SUR) models and uncover a significant and robust negative impact of GPR on TFP and FDI. Counterfactual simulations provide a quantitative approximation of GPR’s impact in 2015–2019, which is substantial in terms of TFP growth but small in terms of FDI. For the emerging economies to consolidate their economic progress, geopolitical stability is essential.

Change is Inevitable, Progress is Optional: Impact of FED Tapering Announcements on North African Equity Markets

We propose one of the first empirical evaluations of the transmission of the 2013–2015 Federal reserve Tapering announcements of assets purchases, to the stock markets of the three north African countries with the most advanced financial development: Egypt, Morocco, and Tunisia. We use two alternative announcement effects dummy variables: one constructed from econometric tests of individual announcements, the other constructed from the media coverage. In spite of a relatively low level of financial integration, the results of panel data tests show a significant negative impact of announcements, generally associated with the Federal Open Market Committee (FOMC) meetings rather than minutes. This result is in line with the literature on the domestic and international announcement effects of the information released by the FOMC, in the absence of discordance of tone between the meeting statement and the minutes. From the perspective of policy recommendations, the study of the interaction of Tapering announcements with domestic fundamentals shows interesting results. Fundamentals with favorable direct effects on equity markets dynamics could indirectly increase their vulnerability to announcement effects. Inflation, domestic investment and commercial openness show significant interaction effects in the opposite sense of their direct effects, some of which are superior to the direct effects.

Tourism and Gross Domestic Product short-run causality revisited: A symbolic transfer entropy approach

We employ a symbolic transfer entropy panel data test in a large-scale data set to provide new insights on the worldwide short-term causality relations between growth and inbound tourists. Using a large data set on 145 countries from the World Bank Open Data website, we show that, despite the evidently strong correlation between these two magnitudes, claiming that the increases in inbound tourists Granger-cause positive shocks in GDP is not supported by the data. By contrast, the data seem to point out in the direction of a reverse causality in that it is GDP growth what drives international inbound tourists in the short run. JEL classification C12, C14, C33, C55.

The trilemma of innovation, logistics performance, and environmental quality in 25 topmost logistics countries: A quantile regression evidence

While the deployment of technological innovation was able to avert a devastating global supply chain fallout arising from the impact of ravaging COronaVIrus Disease 19 (COVID-19) pandemic, little is known about potential environmental cost of such achievement. The aim of this paper is to identify the determinants of logistics performance and investigate its empirical linkages with economic and environmental indicators. We built a macro-level dataset for the top 25 ranked logistics countries from 2007 to 2018, conducting a set of panel data tests on cross-sectional dependence, stationarity and cointegration, to provide preliminary insights. Empirical estimates from Fully Modified Ordinary Least Squares (FMOLS), Generalized Method of Moments (GMM), and Quantile Regression (QR) model suggest that technological innovation, Human Development Index (HDI), urbanization, and trade openness significantly boost logistic performance, whereas employment and Gross Fixed Capital Formation (GFCF) fail to respond in such a desirable path. In turn, an increase in the Logistic Performance Index (LPI) is found to worsen economic growth. Finally, LPI exhibits a large positive effect on carbon emissions, which is congruent with a strand of the literature highlighting that the modern supply chain is far from being decarbonized. Thus, this evidence further suggest that more global efforts should be geared to attain a sustainable logistics.

Pengaruh Debt Asset Ratio, Return on Equity, Growth, dan Size terhadap Kebijakan Dividen

Dividend policy is one of the functions of financial management, where the policy must be properly decided by a manager, so that the interests of the company and investors are balanced. This study aims to examine company-specific factors such as debt asset ratio, return on equity, growth and size that can affect the dividend payout ratio. The method used is descriptive and verification with multiple regression panel data test tools. The sample used is a manufacturing company listed on the Indonesia Stock Exchange (BEI) in 2009-2016 with a total of 97 companies with 302 units of analysis. Meanwhile, the data used is in the form of secondary data sourced from the Indonesian Capital Market Directory (ICMD) and the Capital Market Reference Center. The test results found that the dividend payout ratio was significantly influenced by the debt asset ratio, return on equity and size. Unlike growth, the test results prove that growth does not affect the dividend payout ratio.

Economic globalization and public debt in Sub‐Saharan Africa

AbstractUsing data on Sub‐Saharan African countries and over the period from 1980 to 2017, this study empirically investigates the effects of economic globalization on public debt. By disentangling between the de jure and de facto aspects, the study uses second‐generation panel data tests to diagnose the cross‐sectional dependence, unit root and cointegration. The cross‐sectional error correction model with the estimation by dynamic common correlated effect technique, is used. We find that economic globalization as a whole increases the public debt in the short run while decreases it in the long run. For its dimensions, we show that financial globalization increases the public debt in the short and long run, while trade globalization increases the public debt in the short run but decreases it in the long run. Consideration of the de jure and de facto aspects of economic globalization shows that the de jure economic globalization does not influence government debt while its trade dimension reduces the short‐run public debt and its financial dimension increases the long‐run public debt. The de facto economic globalization and its dimensions increase public debt in the short run, while in the long run only the de facto trade globalization belittles the public debt.