Impact Considerations
Analyzing the Impact of Investment and Institutional Quality in Natural Resource Rents and Economic Welfare Relationship
Paper Presentation in a Themed Session Palupi Anggraeni
The objective of this research is to examine and compare the relationship between natural resource rents and economic welfare in global countries, resource-rich countries, and income level-based resource-rich countries. Using panel data regression analysis with a fixed effect clustering for a twenty year period (1996 to 2015), institutional quality and foreign direct investment (FDI) are considered in the study as both independent variables and moderating variables relevant to natural resource rents and economic welfare. This study found that in global countries, the rents generated from natural resource sectors appear to have an ambiguous impact on economic welfare but not to have any impact in the resource-rich countries group. After grouping the resource-rich countries, negative impacts appear to exist in low and lower-middle income, resource-rich countries. In upper-middle income, resource-rich countries natural resource rents likely have no impact, while in high income, resource-rich countries, they seem to have positive impact. This study also found that the dimensions of institutional quality appear to have significant direct and indirect effects on economic welfare. FDI appears to have a negative direct effect on economic welfare in low and lower-middle and upper-middle income, resource-rich countries only, but a strengthening effect on the resource-welfare relationship in global countries. The findings seem to show that natural resource curse does not always exist and that the impacts of FDI and institutional quality on the resource-welfare relationship are varied in each group of countries.
The Impact of Investor's Characteristics on Sustainability in Indonesian Sukuk Market
Paper Presentation in a Themed Session Wawan Sugiyarto
Sukuk (Islamic bond) is an alternative source of financing that has been significantly decreasing the government’s foreign debt, especially in Indonesia. Yet, research about investing sustainability in sukuk market were very thin. The objective of this research is to examine the impact of investor’s characteristics, i.e. conventional investors, sharia investors, domestic investors and foreign investors on sukuk investing sustainability, while also investigates the determinant factors of sukuk investing sustainability. Using a univariate analysis to Indonesian sukuk auction market data from 2009-2017, this research finds that, compared to the sharia and foreign investors, the domestic and conventional investors receive higher proportion allocation and thus have a more steady state of investing sustainability. However, using a multivariate regression model, there is likely no difference of wealth among the group of investors during this observation period. In terms of the determinant factors, this study finds that the level of uncertainty on investment tends to impact on investing sustainability but no other factors such as the level of share allocation, successful bids rate and the level of competition. These findings show that investing sustainability in Indonesian sukuk market depends on investor’s characteristics and the level of uncertainty of the investment.
The Impact of Urbanization on Renewable Energy Consumption: Analysis in Eleven Asian Countries
Paper Presentation in a Themed Session Pisi Bethania Titalessy, Amirullah Setya Hardi
Climate change requires the world to regulate the supply of energy consumed. The high level of urbanization follows increasing energy consumption needs. To minimize the impact of urbanization on the environment, changes from consumption of fossil fuels to renewable energy are needed. In addition, renewable energy is thought to be a clean energy source and does not have greenhouse gas emissions. Renewable energy is a source of alternative energy that is a solution and attracts the attention of the public and current policy makers. The United Nations Framework Convention on Climate Change (UNFCCC) formed by the United Nations says renewable energy as a movement to reduce greenhouse gases. This institution continues to consistently voice the shift towards environmentally friendly energy through the Millennium Development Goals (MDGs) and Sustainable Development Goals (SDGs) issued by the United Nations. This study analyzes the impact of urbanization on the consumption of renewable energy by using data from 2000 to 2015 in eleven Asian countries. The method used in this study is panel data analysis. The estimation results show that urbanization and economic growth have a positive and significant relationship to the consumption of renewable energy. Whereas industrial value added has a significant and negative effect on the consumption of renewable energy.
