Abstract
Economists who considered the growth performance in the past estimated that Indonesia would preserve its high growth rate performance in the long term. However, the national economy can be currently considered as a developing nation. In addition to public sources, domestic and foreign resources are also needed in the financing of high growth rate. Dual banking offers alternative financial capital opportunities for the developing Islamic countries. It could be argued that the IF serves as an alternative in Indonesia to finance investments. To better measure the probable impacts of the loans they offer upon the GDP, seemingly unrelated regression model has been utilized. A review of the both correlation matrix reveals that there is a strong positive relationship between the loans offered for the sectors and the GDP.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Balassa, B. 1988. The lessons of East Asian development: An overview. Economic Development and Cultural Change 36 (3): 273–290.
Basri, M., and H. Hill. 2011. Indonesian growth dynamics. Asian Economic Policy Review 6 (1): 90–107.
Basri, M., and R. Sjamsu. 2010. The Indonesian economy amidst the global crisis: Good policy and good luck. ASEAN Economic Bulletin 27 (1): 77–97.
Booth, A. 1986. Indonesia’s economy: Performance and policy options in a post-OPEC world. Southeast Asian Affairs 11 (2): 122–136.
Booth, A. 1998. The Indonesian economy in the nineteenth and twentieth centuries: A history of missed opportunities. A Modern Economic History of Southeast Asia. London: Palgrave Macmillan.
Calderon, C., and L. Liu. 2003. The direction of causality between financial development and economic growth. Journal of Development Economics 72 (1): 321–334.
Crouch, H. 1979. Patrimonialism and military rule in Indonesia. World Politics 31 (4): 571–587.
De Silva, I., and S. Sumarto. 2014. Does economic growth really benefit the poor? Income distribution dynamics and the pro-poor growth in Indonesia. Bulletin of Indonesian Economic Studies 50 (2): 227–242.
Dick, H. 2002. The emergence of a national economy. In The emergence of a national economy, eds. H. Dick et al., 1–19. Australia: Allen & Unwin Press.
Glassburner, B. 2007. The economy of Indonesia. Selected Readings. Jakarta: Equinox Edition.
Grabowski, R. 2011. Indonesian economic development: Political economy of an effective state. Journal of the Asia Pacific Economy 16 (2): 241–253.
Habir, A.D. 1993. The emerging Indonesian managerial elite: Professionals amid patriarchs. Southeast Asian Affairs 11 (2): 161–182.
Hill, H. 2007. The Indonesian economy: Growth, crisis and recovery. The Singapore Economic Review 52 (2): 137–166.
Ismail, M.A.M., and M. Masih. 2015. Causality between financial development and economic growth, and the Islamic finance imperative: A case study of Indonesia, 1–19. Malaysia: INCEIF.
Kroef, J.M.v.d. 1957. Guided democracy in Indonesia. Far Eastern Survey 26 (8): 113–124.
Liddle, W. 1983. Polity and economy in Suharto’s Indonesia. Crossroads 1 (3): 35–45.
Lipsky, S., and R. Pura. 1978. Indonesia: Testing time for the new order. Foreign Affairs 57 (1): 186–202.
Majid, M.S.A. 2007. Re-examining the finance-growth nexus empirical evidence from Indonesia. Gadjah Mada International Journal of Business 9 (2): 137–156.
McKinnon, R.A. 1973. Money and capital in economic development. Washington: Brookings Institution.
Medyawati, H., M. Yunanto, and G. University. 2011. Banking development, agriculture and manufacturing industry sector in economic growth in Indonesia: Do they influence? International Journal of Trade, Economics and Finance 2 (4): 312–317.
Myrdal, G. 2008. Asian drama: An inquiry into the poverty of nations. New York: Kalyani Publishers.
Rakove, R.B. 2015. The rise and fall of non-aligned mediation, 1961–1966. The International History Review 37 (5): 991–1013.
Raz, A.F. 2013. The nexus between bank credit development and economic growth in Indonesia. DLSU Business & Economics Review 23 (1): 93–104.
Redfern, W.A. 2010. Sukarno’s guided democracy and the takeovers of foreign companies in Indonesia in the 1960s. In Social science in history. Ann Arbor: The University of Michigan.
Resosudarmo, B.P., and A. Kuncoro. 2006. The political economy of Indonesian economic reforms: 1983–2000. Oxford Development Studies 34 (3): 341–355.
Schumpeter, J.A. 1911. The theory of economic development. Cambridge: Harvard University Press.
Shaw, E.S. 1973. Financial deepening in economic development. London: Oxford University Press.
Sjahrir, S. 1990. The Indonesian economy facing the 1990s: Structural transformation and economic deregulation. Southeast Asian Affairs 117–131.
Sönmez, A. 2001. Doğu Asya ‘Mucizesi’ ve Bunalımı, Türkiye İçin Dersler. İstanbul Bilgi Üniversitesi Yayınları: İstanbul.
Suryadarma, D., A. Suryahad, and S. Sumarto. 2013. Sectoral growth and job creation: Evidence from Indonesia. Journal of International Development 25 (1): 549–561.
van Zanden, J.L., and D. Marks. 2012. An economic history of Indonesia 1800–2010. New York: Routledge.
Yazid, M.N.M. 2014. The Indonesian economic development after 1965: Developmental state, radical politics & regional cooperation. SOP Transactions on Economic Research 1 (3): 1–14.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 The Author(s)
About this chapter
Cite this chapter
Levent, A., Ustaoğlu, M., Tatoğlu, F.Y. (2017). A Quantitative Reassessment of the Dual Banking–Growth Nexus in Indonesia: Comparative Analysis. In: USTAOĞLU, M., İNCEKARA, A. (eds) Balancing Islamic and Conventional Banking for Economic Growth. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-59554-2_6
Download citation
DOI: https://doi.org/10.1007/978-3-319-59554-2_6
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-59553-5
Online ISBN: 978-3-319-59554-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)