Strategy for Improving Cooperative Institutional Quality in Semarang

The existence of many problematic cooperatives has indicated the lack quality of their institution. Therefore, it is important to prioritize the assistance from the government. This research aims to identify a strategy to improve the quality of the institutions at the Board for Cooperative and Small Enterprises in Semarang. This research employs qualitative method focusing on the strategies for improving the quality of cooperative institutions. The research shows that they use some strategies: (1) socialization to community; (2) establishment of cooperative; (3) assistance from facilitators for cooperatives at the subdistrict level consisting of evaluation, inventory, and counseling; (4) coordination among facilitators; (5) formulating assistance strategies; and (6) evaluation. Keywords: Strategy, Institutions, Cooperative, Small EnterprisesJEL Classification: G20, Q1

Front Matter

Front Matte

Import Components and Import Multipliers in Indonesian Economy: World Input-Output Analysis

This paper calculates, presents and discusses on import components and the impact of final demand change on Indonesian imports using Indonesian 36 sector input-output tables of years: 2000, 2005, 2010 and 2014 from World Input-Output Tables. The results showed that firstly, Indonesian import components of input were, on average, more than 20 percent; meaning that input that locally provided were less than 80 percent. Secondly, Indonesian import of input had increased significantly from US$36,011 million in 2000 to US$ 151,505 million in 2014. Thirdly, Indonesian imports have been dominated by Sector-3: Manufacture of food products, beverages and tobacco products, Sector-4: Manufacture of textiles, wearing apparel and leather products, Sector-24: Construction, Sector-25: Wholesale and retail trade and repair, and Sector-26: Transportation and post services. Fourthly, by country of origin, Indonesian imports have been dominated by Japan, Korea, the USA, Australia, and China. Imports from Australia, Japan, and the US have been decreased significantly, but import from China has steadily increased. Finally, highest sectoral import multipliers occurred if final demands change in Sector-1: Crop and animal production, forestry, fishing and aquaculture, Sector-2: Mining and quarrying, Sector-23: Water collection; sewerage; waste collection, treatment and disposal activities, and Sector-30: Real estate activities, but there was no significant difference of import multipliers for country origin of import.Keywords: import components, sectoral import multiplier, spatial import multiplier.JEL Classification: C67, D57, F1

ANALYSIS OF THE IMPACT OF INFLATION REDUCTION ON OUTPUT AND UNEMPLOYMENT IN NIGERIA

It has been enunciated that it is possible to reduce the size of the sacrifice ratio in an economy without a corresponding increase in the rate of inflation. Besides, for the Nigerian economy, there are issues relating to the inflation-output relationship, among which is how inflation inertia impacts on output and unemployment. It is therefore apt to ascertain what Nigeria’s sacrifice ratio could be after many successful inflation reductions over the years. Adopting the Instrumental Variables Generalized Method of Moments (IV-GMM) technique and using data from1970-2015, the findings suggest that inflation inertia has a significant negative impact on the actual rate of inflation in Nigeria. It was also revealed that the percentage of a year’s real GDP that must be forgone to reduce inflation by 1 percent in Nigeria is 5.1 while 53.6 percent of output was sacrificed in 1982. Equivalently, a sacrifice of 26.6 percent of cyclical unemployment was made in the same year; while the highest percentage of GDP was sacrificed in 1990 and the lowest in 2007.Keywords: Inflation inertia, sacrifice ratio, output, unemploymentJEL Classification: C22, E61, P4

Tackling Poverty through Women Empowerment: The Role of Social Capital in Indonesian Women’s Cooperative

Women in poverty discourse are considered as a highly vulnerable group. Women empowerment through micro-financing program is the appropriate way to solve the issue of woman poverty. Women, who often had difficult credit access in a formal financial institution, become facilitated in accessing capital to improve her business by the existence of woman cooperative (Koperasi Wanita). Cooperative is an organization who depicts social capital, which has important elements that refer to network, trust, and norm. The objective of this study was to found out the effect of network, trust, and norm as social capital dimension toward women empowerment and its impact toward poverty. This study used quantitative approach through questionnaire and documentation. The population of this study consists of members of Kelompok Pengusaha dan Pedagang Kecil (KPPK) Kopwan SU “Setia Budi Wanita” in East Java, with samples using 251 respondents. Based on Partial Least Square (PLS) analysis result, it showed that network, trust, and norm social capital dimensions has positive and significant effect toward women empowerment. Network, trust, and norm social capital dimensions have negative and significant effect toward poverty. And women empowerment has negative and significant effect toward poverty.Keywords: social capital, woman empowerment, poverty, cooperativeJEL Classification: I32, J16, O15, Z1

Realization Strategy of Budget Allocation to Disseminating of Development Infomation

The objectives of this study is to know the strategy of realization for budget allocation of 2016 for disseminating of development information in news and communication Information Division, especially in Publication and Media Relation Sub Division at Public Relation and Protocol Bureau, Provincial Secretariat of West Nusa Tenggara. This study uses descriptive qualitative approach and tends to find a meaning from data obtained from the result of a research. It is intended to describe the description of existing data or theories and the resulting findings. In this case, the researchers collected data by conducting in-depth interviews and the use of information access test methods of eleven informants. The results show that there are limitations of publication budget on Sub Division of Publication and Media Relations at Public Relations Bureau and Protocol Provincial Secretariat of West Nusa Tenggara, the inappropriate use of the strategy, the lack of harmony of internal relations both within the environment of public relations officials themselves and with the media crew, the presumption that the Trip Press budget is in vain, less than the maximum use of media Internal and outdoor media.Keywords: Realization Strategy, Budget, Information and Development JEL Classification: G31, H73 

Back Matter

Back Matte

Profit Margin Assessment of Sheep Marketing: A Panacea for Sustainable Small-scale Livestock Enterprise in Gombe State, Nigeria

This paper assessed the profitability of small-scale sheep marketing in Gombe Metropolis. Four sheep markets were purposively selected for their popularity in small ruminants marketing. A multi-stage sampling technique was used to select 91 sheep marketers these markets. Data were collected using structured questionnaire and were analysed using descriptive statistics, farm budget and maximisation of consumer satisfaction models. The result revealed that purchasing cost for ram and ewe constituted 92.59% and 91.50% of the total marketing costs respectively. The result further revealed the average net income of ₦4,922.46 (13.72) per head of animal was realised. The gross and operating ratios for the respective animals were < 1; meaning that the business was profitable. Also, the returns per naira invested for ram and ewe were ₦0.17 (0.00048) and ₦0.18 ($0.0005) respectively. The marketing coefficient (134.80%) of Tike-babba market, revealed to be most efficient. Inadequate capital was critical; this was attributed to insufficient sources of credits. However, improvement in the existing infrastructural facilities will help promote expansion of the present scale of the enterprise operations. Governments and other financial institutions should also do more to extend funds in the form of soft loans to the marketers, so as to improve efficiency.Keywords: Market; Profitability; Efficiency; Sheep; Small-scale; GombeJEL Classification: L10, Q13

Do Foreign Direct Investment Inflows Impinge Gross Domestic Product? A Venture Out for ASEAN

Foreign Direct Investment, since decades, has taken over other sources of debt flows both in developed as well as emerging economies of the world. The reason that support this overly attachment to revered flows of FDI does not seem to benign the economies by smidgens but in amass. Back to 1990s, the economies over the world witnessed huge opening of their foreign policies with an avarice objective of luring more and more foreign capital, more advancely, foreign investment. The globalisation phenomenon that also gauges back to the late 80s and early 90s saw in the opening up of economies a plethora of opportunities to integrate economies across the globe. One major instance of the speeding globalisation was seen in the form of bilateral and multilateral agreements among nations to enhance cooperation on mutual fronts. ASEAN, one such conglomeration, saw its inception back in 1967 and with the steering of global identity, the participating members extended from five founding members to other countries of Southeast Asia as well. The ameliorating figure of Foreign Direct Investment Inflows in the ASEAN region has stirred a need for quantifying the overall effect of FDI Inflows on Gross Domestic Product of the region. The present research note intends to capture this impingement of Foreign Direct Investment Inflows on Gross Domestic Product of the Ten Southeast Asian member nations which together constitute ASEAN. The data is fetched from UNCTAD Statistics database for a time range of 1980-2015. Panel regression technique is deployed to meet ends. The results of the econometric approach of Random Effects Panel Regression indicate a significant and positive impingement of Foreign Direct Investment Inflows on Gross Domestic Product of ASEAN member states. The outcome of the analysis thus throws light on how Foreign Direct investment Inflows has contributed to the Gross Domestic product of ASEAN and further exploration in the area will blossom the relationship. Keywords: Foreign Direct Investment Inflows, ASEAN, UNCTAD.JEL Classification: F10, F2

Indonesian Comparative Advantage Entering the ASEAN Economic Community

The purpose of this study is to examine the comparative advantage of Indonesian commodities in order to enter the ASEAN Economic Community (AEC). This study uses the export data during the period of 2003-2013 among five ASEAN countries participating in the AEC, including Indonesia, Malaysia, The Philippines, Singapore, and Thailand. All data obtained from the UN Comtrade database following the Harmonized System (HS) at the two-digit classification level. This study applies dynamic revealed comparative advantage (DRCA) index developed by Edwards and Schoer (2001) which is the development of revealed comparative advantage (RCA) index by Balassa (1965). The results show that Indonesia is ready to enter the AEC. From this research, there are several Indonesian main commodities which have comparative advantage in ASEAN, including fish, crustaceans, molluscs, aquatic invertebrates ones (HS-03), edible fruit, nuts, peel of citrus fruit, melons (HS-08), oil seed, oleagic fruits, grain, seed, fruit, etc, nes (HS-12), lac, gums, resins, vegetable saps and extracts nes (HS-13), rubber and articles thereof (HS-40), paper &amp; paperboard, articles of pulp, paper and board (HS-48), special woven or tufted fabric, lace, tapestry etc (HS-58), articles apparel, accessories, not knit or crochet (HS-62), and vehicles other than railway, tramway (HS-87). Those commodities are in line with Indonesian government export's strategy direction which mainly focuses on several sectors, including fishery, vegetable products, rubber, wood and wood products, textiles, and transportation. Therefore, Indonesian government should focus to improve those commodities in AEC.Keywords: Indonesian Comparative Advantage, Main Export Commodities,  Export Strategy Direction, ASEAN Economic CommunityJEL Classification: F11, F4