Unraveling the interplay between globalization, financial development, economic growth, greenhouse gases, human capital, and renewable energy uptake in Indonesia: multiple econometric approaches.

Addressing global environmental concerns requires the widespread adoption of renewable energy sources. More research is needed to examine the relationships between renewable energy (RE) and globalization, economic growth, and environmental quality in Indonesia. Therefore, we examined how renewable energy usage in Indonesia has changed due to the dynamic effects of globalization, financial development, and environmental quality. Time-series data were analyzed using an autoregressive distributed lag (ARDL) model to test for cointegration and long-run/short-run dynamics between 1990 and 2020. In addition to ARDL bounds testing, we used the Johansen and Engle-Granger cointegration methods for confirmation. Globalization, financial progress, human capital, greenhouse gas emissions, and economic expansion have favorable long- and short-term effects on renewable energy sources. Globalization has enabled Indonesia to expand trade, FDI, and financial investment. It has also increased energy-efficient technology use due to environmental policies. The computed results are robust enough to substitute estimators, such as dynamic ordinary least squares (DOLS), fully modified least squares (FMOLS), and canonical cointegrating regression (CCR). We recommend the implementation of policies that support financial and environmental development by utilizing renewable resources and increasing investments in renewable energy ventures.

The environmental influence of national savings in D-8 countries: Empirical evidence using an ARDL model.

Extensive theoretical and empirical evidence supports the crucial role of savings in driving a nation's economic growth and development. However, previous studies have not considered their potential environmental implications. This study aims to explore the influence of savings and remittances on the Developing-8 countries (D-8) from 1989 to 2019, using the panel autoregressive distributed (ARDL) model. The findings reveal that national savings and remittances, in the long run, help mitigate environmental degradation in the D-8 countries but energy use and population growth stimulate carbon dioxide (CO2) emissions. In contrast, economic growth does not significantly affect these countries' environmental quality in the long run. However, none of the explanatory variables have any significant relationship with CO2 emissions in the short run. Therefore, policymakers in the D-8 countries are strongly encouraged to prioritize the enhancement of national savings across the three economic agents to maximize the positive effects of savings on environmental quality. Government savings can be increased by reducing deficits and borrowings, while corporate savings can be encouraged by implementing investment tax credits and promoting research and development. Additionally, governments can embark on public enlightenment campaigns on financial education and provide incentives to encourage household savings.

Do National Export Promotion Programs in Indonesia support export competitiveness?

This study examines the influence of export promotion programs (EPPs) in Indonesia on companies' resources, capabilities, strategies, and competitiveness, and whether such programs positively impact export performance and finances. Using data from 204 exporting companies in Indonesia and the structural equation model for analysis, this study finds that participation in EPPs reinforces the organizational resources and exporting capabilities needed for developing successful export strategies. This allows for the creation of competitive advantages in export costs, product superiority, and effective distribution, which in turn increases performance in terms of market share and finance. The results also indicate that the effect of EPPs is relatively more significant on small companies and those with more export experience. They confirm that EPPs have the most significant impact on firms' resources and capabilities, and that assistance programs that aim to improve organizational capabilities are needed to enhance marketing strategies. While innovative capabilities and business intelligence offer great potential to support export performance, EPP-type assistance programs have not been adequately developed in Indonesia.

Survey data on organizational resources and capabilities, export marketing strategy, export competitiveness, and firm performance in exporting firms in Indonesia.

This article presents a dataset of 204 exporting firms surveyed in Indonesia to assess the internationalization and participation of enterprises in government export promotion programs (EPP). Under a resource-based view (RBV) approach, the dataset includes four dimensions of government export assistance programs, three dimensions capturing organizational resources and organizational capabilities. In addition, the survey collects data on the firms' export marketing strategies, competitiveness, and market performance. Firm-level characteristics are identified to reveal the organizational characteristics, the companies' strategic features, and market orientation. The dataset also includes obstacles the companies face across dimensions and sub-components with critical attributes. In total, the dataset includes 19 constructs of questions with 180 variables. The dataset can be used to test the firms' competitive advantage in export markets, assess the role of government programs in the firms' export performance, examine export barriers as predictors, mediators, and moderators of export performance, etc. The dataset can be used under different theoretical approaches, i.e., RBV, internationalization process, or institutional theories.

Does competition and foreign investment spur industrial efficiency?: firm-level evidence from Indonesia.

This study examines the effects of market competition and foreign direct investment on the technical efficiency of firms within the Indonesian manufacturing sector using a Stochastic Frontier Analysis. We employ a firm-level panel dataset for the period of 2010-2014, covering 400 subsectors, and employing two measures of industrial concentration as proxies for market competition. The results suggest that firms operating in less competitive sectors in Indonesia experience higher technical efficiency. Additionally, foreign ownership, international activity (export-import), and firm size are positively related to technical efficiency. Such findings suggest that the efficient structure hypothesis (ESH) applies in Indonesia, as more efficient firms gain in market share as a result from dynamic competition. Foreign direct investment (FDI) via horizontal spillovers has contributed to an increase in intra industry firms' efficiency. Nevertheless, as industrial concentration increases, the positive effects in firm efficiency from FDI and from international trade (imports and export) tend to decrease.

The impact of exchange rate volatility on Indonesia's top exports to the five main export markets.

This study examines the impact of exchange rate volatility on Indonesia's primary export commodities to the top five export destination countries, namely China, India, Japan, South Korea, and the United States. This study uses a GARCH model to obtain an estimated value of exchange rate volatility, using monthly data covering from 2006 to 2018. The ARDL method helps to measure the effect of exchange rate volatility on exports to destination countries in both the short and the long-term. Aggregate exports are compared employing a linear (ARDL) and a non-linear autoregressive distributed lag model (NARDL). The findings suggest that exchange rate volatility has a significant effect on exports of commodities under code 26 (ores), 38 (chemicals), 40 (rubber), and 47 (pulp paper) to India, Japan, South Korea, and the United States, either in the short or long-run. The exchange rate volatility of exports to China only affects plastics goods (code 39), although many goods experience negative effects due to exchange rate depreciation. In India, exchange rate volatility affects the largest number of export commodities. The Index of Industrial Production (IIP) has a strong long-term effect on exports to Asian countries. Impacts due to exchange rates offer both negative effects and positive effects (expected) in exports at commodity and trade partner case-to-case levels. Both aggregate ARDL and NARDL models suggest that Indonesian exports are negatively affected by exchange rate fluctuations.