2072-64142411-1406

10.17059/ekon.reg.2023-4-23

Financial Development and Economic Growth: Evidence from Indonesia Before and After the COVID-19 Pandemic

Финансовое развитие и экономический рост Индонезии до и после пандемии COVID-19

https://orcid.org/0000-0001-8864-2224

Aryati

Арьяти

aryati.arfah@umi.ac.id

https://orcid.org/0000-0003-1450-1933

Junaidi

Джунаиди

junaidi@umpalopo.ac.id

https://orcid.org/0000-0002-8663-7947

Putra

Randy Ariyadita

Путра

Рэнди Ариядита

randy@iainkendari.ac.id

Indonesian Muslim UniversityМусульманский университет Индонезии

Palopo Muhammadiyah UniversityУниверситет Мухаммадия в Палопо

State Islamic Institute of KendariГосударственный исламский институт Кендари

19412631274

2023

Aryati Aryati, Junaidi Junaidi, Randy Ariyadita Putra

Арьяти Арьяти, Джунаиди Джунаиди, Рэнди Ариядита Путра

CC BY 4.0

https://www.economyofregions.org/ojs/index.php/er/article/view/247

https://www.economyofregions.org/ojs/index.php/er/article/download/247/266

During the COVID-19 pandemic, most countries suffered economically. Financial institutions play an important role in enhancing economic growth through intermediation. However, preliminary studies focused on common aspects of financial institutions rather than the banking context, and the majority of the literature was written prior to the COVID-19 pandemic. This study examines the banking sector’s role in short-run and long-run contributions to economic growth from 2009 to 2021. Indicators of the number of banking deposits, offices and public financing were used as proxies to validate the relationship between Indonesian financial development and economic growth (gross domestic product) in the vector error correction model (VECM). The Indonesian bank’s contribution to the country’s economic growth was examined. Data were collected from banks’ annual reports. This study found a strong short- and long-term correlation between financial development and Indonesia’s economic growth. There is a bidirectional relationship between Indonesia’s Islamic Bank (IIB) and GDP. The relationship between the conventional bank and Indonesia’s economic growth is unidirectional. Therefore, policymakers should enhance the intensified mobilisation of loans obtained for capital and productive projects. This study also shows that macroeconomic and microeconomic stability can be improved by enhancing capital inflows and investments in lucrative sectors, as the research goal was to examine the effect of financial development before and after the COVID-19 pandemic, which detriments most countries’ stability. However, future studies need to confirm banks’ contributions to specific sectors such as agriculture and small and medium enterprises due to their strong correlation with developing countries.

Пандемия COVID-19 негативно повлияла на экономическое развитие большинства стран. Финансовые институты, выступая в качестве посредников, играют важную роль в ускорении экономического роста. Однако предыдущие работы исследовали финансовые организации в общем, не учитывая банковский контекст. Кроме того, большинство исследований было выполнено до пандемии COVID-19. В статье рассматривается краткосрочное и долгосрочное влияние банковского сектора на экономическое развитие Индонезии в период 2009-2021 гг. Показатели количества вкладов, количества банковских офисов, а также общественного финансирования были использованы в качестве переменных для анализа взаимосвязи между финансовым развитием и экономическим ростом (валовым внутренним продуктом). С этой целью авторы использовали векторную модель коррекции ошибок. Проведенная на основе данных годовых отчетов оценка влияния индонезийских банков на экономический рост страны выявила краткосрочную и долгосрочную корреляцию между финансовым развитием и экономическим ростом Индонезии. Между деятельностью исламских банков Индонезии и ВВП существует двухсторонняя взаимосвязь, а между деятельностью традиционных банков и экономическим ростом — односторонняя. Таким образом, следует позволить банкам выдавать больше кредитов на инвестиционные и производственные проекты. Исследование финансового развития до и после пандемии COVID-19 показало, что макро- и микроэкономическая стабильность может быть восстановлена путем увеличения притока капитала и инвестиций в прибыльные секторы. В дальнейшем необходимо проанализировать влияние банков на конкретные секторы, такие как сельское хозяйство и малый и средний бизнес, играющие важную роль в развивающихся странах.

conventional bank, Islamic bank, Indonesian economic growth, GDP, financing, deposits, ARDL, VECM

традиционный банк, исламский банк, экономический рост Индонезии, ВВП, финансирование, вклады, модель авторегрессии и распределённого лага, векторная модель коррекции ошибок

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