Pembiayaan Investasi Bank Syariah dan Pertumbuhan Produksi Usaha Kecil dan Menengah: Bukti Data Panel Indonesia Kawasan Barat
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Published:
Dec 22, 2022
Keywords:
Granger causality test, investment financing, panel VECM, SMEs production
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Abstract
This study aims to examine and analyze the effect of Islamic bank investment financing on the production growth of small and medium enterprises (SMEs). Using panel data from 8 provinces in western Indonesia from 2014.Q3 to 2019.Q3, the analytical model used is the cointegration test, vector error correction model, and Granger causality test. The study found a long-term and short-term relationship between the two variables. In the long term, investment financing will positively and significantly increase SMEs' production growth. Furthermore, in the short run, the relationship between the two variables is negative. Granger causality test results indicate a two-way causality between investment financing and production index growth. Production responses to changes in investment financing and vice versa, the investment financing is also a response to changes in SMEs' production growth.
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References
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Appiah, M., Frowne D. I., & Tetteh, D. (2020). Re-examining the nexus between financial development and poverty reduction: evidence from emerging economies. Applied Economics Journal, 27(2), 125-144.
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Arulraj, D.J. & Annamalai, T.R. (2020). Firms’ financing choices and firm productivity: Evidence from an emerging economy. Journal of Global Business and Competitiveness, 15(1), 35–48. https://doi.org/10.1007/s42943-020-00008-2.
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Bhatia, V., Basu, S., Mitra, S. K., & Dash, P. (2018). A review of bank efficiency and productivity. OPSEARCH, 55(3), 557-600. doi:10.1007/s12597-018-0332-2.
Bigelli, M., Martín-Ugedo, J. F. & Sánchez-Vidal, F. J. (2014). Financial conservatism of private firms. Journal of Business Research, 67(11), 2419–2427. doi:10.1016/j.jbusres.2014.02.009.
Bist, J. P. (2018). Financial development and economic growth: Evidence from a panel of 16 African and non-African low-income countries. Cogent Economics & Finance, 6(1). doi:10.1080/23322039.2018.1449780.
[BPS] Badan Pusat Statistik. (2020). Laporan Perekonomian Indonesia. Jakarta (ID), Biro Pusat Statistik.
Cerrato, M. & Sarantis, N. (2007). A bootstrap panel unit root test under cross-sectional dependence, with an application to PPP. Computational Statistics & Data Analysis, 51(8), 4028–4037. doi:10.1016/j.csda.2006.12.025.
Cordis, A. S. & Kirby, C. (2016). Capital expenditures and firm performance: evidence from a cross-sectional analysis of stock returns. Accounting & Finance, 57(4), 1019–1042. doi:10.1111/acfi.12193.
Doan, T. (2020). Financing decision and firm performance: Evidence from an emerging country. Management Science Letters, 10(4), 849-854.
Dritsaki, C. & Dritsaki-Bargiota, M. (2005). The causal relationship between stock, credit market and economic development: An empirical evidence for greece. Economic Change and Restructuring, 38(1), 113–127. doi:10.1007/s10644-005-4525-3.
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Dvoulety, O. & Blazkova, I. (2019). The impact of public grants on firm-level productivity: Findings from the Czech food industry. Sustainability, 11(2), 552. doi:10.3390/su11020552.
Enders, W. (1995). Applied Econometric Time Series. New York (US), John Wiley and Sons.
Erdin, C. & Ozkaya, G. (2020). Contribution of small and medium enterprises to economic development and quality of life in Turkey. Heliyon, 6(2), e03215. doi:10.1016/j.heliyon.2020.e03215.
Esubalew, A.A. & Raghurama, A. (2021). The moderating effect of size on the relationship between commercial banks financing and the performance of micro, small, and medium enterprises (MSMEs). Journal of Global Entrepreneurship Research, 1-14. https://doi.org/10.1007/s40497-021-00265-2.
Faisol, F. (2018). The impact of financing of syariah bank toward the performance and welfare of small medium enterprise. Efektor, 5(2), 86-95.
Franklin, J., Rostom, M. & Thwaites, G. (2019). The banks that said no: The Impact of credit supply on productivity and wages. Journal of Financial Services Research, 57(2), 149-179. doi:10.1007/s10693-019-00306-8.
Godke Veiga, M. & McCahery, J.A. (2019). The financing of small and medium-sized enterprises: An analysis of the financing gap in Brazil. European Business Organization Law Review, 20(4), 633–664. https://doi.org/10.1007/s40804-019-00167-7.
Guptha, K. S. K. & Rao, R. P. (2018). The causal relationship between financial development and economic growth: an experience with BRICS economies. Journal of Social and Economic Development, 20(2), 308-326. doi:10.1007/s40847-018-0071-5.
Guru, B. K. & Yadav, I. S. (2019). Financial development and economic growth: panel evidence from BRICS. Journal of Economics, Finance and Administrative Science, 24(47), 113-126. doi:10.1108/jefas-12-2017-0125.
Hasyim, S., Zulhilmi, M. & Amri, K. (2019). Is there a causality relationship between law enforcement, crime rates, and economic growth? An empirical evidence from western Indonesia. Regional Science Inquiry, 11(3), 95-109.
Ikhsan, Fitri, C. D., Maulana, H., &Amri, K. (2020).Effect of inflation on total deposits and financing of sharia commercial banks: A monthly data evidence from Indonesia, Regional Science Inquiry, 12 (1), 103-114.
Kalantonis, P., Kallandranis, C., & Sotiropoulos, M. (2021). Leverage and firm performance: new evidence on the role of economic sentiment using accounting information, Journal of Capital Markets Studies. https://doi.org/10.1108/JCMS-10-2020-0042.
Kim, S., Saha, A. & Bose, S. (2020). Do capital expenditures influence earnings performance: Evidence from loss‐making firms. Accounting & Finance, 61, 2539-2575. doi:10.1111/acfi.12675.
Latif, E. (2015). A panel data analysis of the demand for electricity in Canada. Economic Papers: A Journal of Applied Economics and Policy, 34(3), 192–205. doi:10.1111/1759-3441.12103.
Maddala, G. S. & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61(1), 631–652. doi:10.1111/1468-0084.0610s1631.
Mahembe, E., & Odhiambo, N. M. (2019). Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis. Cogent Economics & Finance, 7(1). doi:10.1080/23322039.2019.1626321.
Mallick S. & Yang Y. (2014) Financing Patterns, Multinationals and Performance: Firm-level Evidence from 47 Countries. In: Temouri Y., Jones C. (eds) International Business and Institutions after the Financial Crisis. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137367204_12.
Mehrara, M. (2007). Energy consumption and economic growth: The case of oil exporting countries. Energy Policy, 35(5), 2939–2945.
Menegaki, A. N. (2019). The ARDL method in the energy-growth nexus field; best implementation strategies. Economies, 7(4), 105. doi:10.3390/economies7040105.
Muchtar, D., Mat Nor, F., Albra, W., Arifai, M., Ahmar, A. S., & Elgammal, M. M. (2018). Dynamic performance of Indonesian public companies: An analysis of financial decision behavior. Cogent Economics & Finance, 6(1), 1-14. doi:10.1080/23322039.2018.1488343.
Nazamuddin, B. S. & Amri, K. (2020).Does goods and services spending reduce income inequality? A panel data evidence from Indonesia. Regional Science Inquiry, 12(1), 87-102.
[OJK] Otoritas Jasa Keuangan. (2020). Statistik Perbankan Syariah Edisi April 2020 [Internet]. [diunduh 2020 Sep 1]. Tersedia pada: https://www.ojk.go.id/id/kanal/syariah/data-dan-statistik/statistik-perbankan-syariah/Documents/Pages/Statistik-Perbankan-Syariah---April-2020/SPS%20April%202020.pdf.
Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(1), 653–670.
Petersen, M. A. & Rajan, R. G. (1994). The benefits of lending relationships: Evidence from small business data. The Journal of Finance, 49(1), 3–37. doi:10.1111/j.1540-6261.1994.tb04418.x.
Shafighi, N., Shaari, A. H., Gharleghi, B., Sarmidi, T., & Omar, K. (2016). Financial integration via panel cointegration approaches in ASEAN+5. Journal of Economic Studies, 43(1), 2–15. doi:10.1108/jes-08-2014-0141.
Shrestha, M. B. & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. The Journal of Finance and Data Science, 4(2), 71–89.
Storey, D. J. (1994). New firm growth and bank financing. Small Business Economics, 6(2), 139–150. doi:10.1007/bf01065186.
Thampy, A. (2010). Financing of SME firms in India. IIMB Management Review, 22(3), 93–101. doi:10.1016/j.iimb.2010.04.011.
Tsuruta, D. (2015). Leverage and firm performance of small businesses: Evidence from Japan. Small Business Economics, 44(2), 385-410.
Ullah, B. & Wei, Z. (2017). Bank financing and firm growth: Evidence from transition economies. Journal of Financial Research, 40(4), 507–534. doi:10.1111/jfir.12133.
Westerlund, J. (2006). Some cautions on the use of the LLC panel unit root test. Maastricht Research School of Economics of Technology and Organization (METEOR).
Wolters, J. & Hassler, U. (2006). Unit root testing. Allgemeines Statistisches Archiv, 90(1), 43–58. doi:10.1007/s10182-006-0220-6.
Zivot, E. & Wang, J. (2003). Modeling Financial Time Series with S-Plus. New York (US), Springer.
Akiyoshi F., & Kobayashi, K. (2010). Banking crisis and productivity of borrowing firms: Evidence from Japan. Japan and the World Economy, 22(3), 141–150. doi:10.1016/j.japwor.2010.03.001.
Amjed, S. (2011, June). Impact of financial structure on firm’s performance: A study of Pakistan’s chemical sector. In Society of Interdisciplinary Business Research (SIBR) 2011 Conference on Interdisciplinary Business Research. http://dx.doi.org/10.2139/ssrn.1867882.
Amornkitvikai, Y. & Harvie, C. (2016). The impact of finance on the performance of thai manufacturing small and medium-sized enterprises. ADBI Working Paper 576.
Amri, K. (2017). Analisis pertumbuhan ekonomi dan ketimpangan pendapatan: Data panel 8 provinsi di Sumatera. Jurnal Ekonomi Manajemen dan Teknologi, 1(1), 1-11.
Andersson, F. N. G., Burzynska, K. & Opper, S. (2016). Lending for growth? A Granger causality analysis of China’s finance–growth nexus. Empirical Economics, 51(3), 897–920. doi:10.1007/s00181-015-1034-8.
Appiah, M., Frowne D. I., & Tetteh, D. (2020). Re-examining the nexus between financial development and poverty reduction: evidence from emerging economies. Applied Economics Journal, 27(2), 125-144.
Arize, A. C., Malindretos, J. & Obi, Z. I. (2002). Long- and short-term interest rates in 19 countries: Tests of cointegration and parameter instability. Atlantic Economic Journal, 30(2), 105–120. doi:10.1007/bf02299156.
Arulraj, D.J. & Annamalai, T.R. (2020). Firms’ financing choices and firm productivity: Evidence from an emerging economy. Journal of Global Business and Competitiveness, 15(1), 35–48. https://doi.org/10.1007/s42943-020-00008-2.
Berger, A. N., & Udell, G. F. (1998). The economics of small business finance: The roles of private equity and debt markets in the financial growth cycle. Journal of Banking & Finance, 22(6-8), 613–673. doi:10.1016/s0378-4266(98)00038-7.
Bhatia, V., Basu, S., Mitra, S. K., & Dash, P. (2018). A review of bank efficiency and productivity. OPSEARCH, 55(3), 557-600. doi:10.1007/s12597-018-0332-2.
Bigelli, M., Martín-Ugedo, J. F. & Sánchez-Vidal, F. J. (2014). Financial conservatism of private firms. Journal of Business Research, 67(11), 2419–2427. doi:10.1016/j.jbusres.2014.02.009.
Bist, J. P. (2018). Financial development and economic growth: Evidence from a panel of 16 African and non-African low-income countries. Cogent Economics & Finance, 6(1). doi:10.1080/23322039.2018.1449780.
[BPS] Badan Pusat Statistik. (2020). Laporan Perekonomian Indonesia. Jakarta (ID), Biro Pusat Statistik.
Cerrato, M. & Sarantis, N. (2007). A bootstrap panel unit root test under cross-sectional dependence, with an application to PPP. Computational Statistics & Data Analysis, 51(8), 4028–4037. doi:10.1016/j.csda.2006.12.025.
Cordis, A. S. & Kirby, C. (2016). Capital expenditures and firm performance: evidence from a cross-sectional analysis of stock returns. Accounting & Finance, 57(4), 1019–1042. doi:10.1111/acfi.12193.
Doan, T. (2020). Financing decision and firm performance: Evidence from an emerging country. Management Science Letters, 10(4), 849-854.
Dritsaki, C. & Dritsaki-Bargiota, M. (2005). The causal relationship between stock, credit market and economic development: An empirical evidence for greece. Economic Change and Restructuring, 38(1), 113–127. doi:10.1007/s10644-005-4525-3.
Drobetz, W., Janzen, M. & Meier, I. (2018). Investment and financing decisions of private and public firms. Journal of Business Finance & Accounting,46(1-2), 225-262. doi:10.1111/jbfa.12367.
Durlauf, S. N. & Blume, L. E. (Eds.). (2010). Macroeconometrics and Time Series Analysis. Springer. https://doi.org/10.1057/9780230280830.
Dvoulety, O. & Blazkova, I. (2019). The impact of public grants on firm-level productivity: Findings from the Czech food industry. Sustainability, 11(2), 552. doi:10.3390/su11020552.
Enders, W. (1995). Applied Econometric Time Series. New York (US), John Wiley and Sons.
Erdin, C. & Ozkaya, G. (2020). Contribution of small and medium enterprises to economic development and quality of life in Turkey. Heliyon, 6(2), e03215. doi:10.1016/j.heliyon.2020.e03215.
Esubalew, A.A. & Raghurama, A. (2021). The moderating effect of size on the relationship between commercial banks financing and the performance of micro, small, and medium enterprises (MSMEs). Journal of Global Entrepreneurship Research, 1-14. https://doi.org/10.1007/s40497-021-00265-2.
Faisol, F. (2018). The impact of financing of syariah bank toward the performance and welfare of small medium enterprise. Efektor, 5(2), 86-95.
Franklin, J., Rostom, M. & Thwaites, G. (2019). The banks that said no: The Impact of credit supply on productivity and wages. Journal of Financial Services Research, 57(2), 149-179. doi:10.1007/s10693-019-00306-8.
Godke Veiga, M. & McCahery, J.A. (2019). The financing of small and medium-sized enterprises: An analysis of the financing gap in Brazil. European Business Organization Law Review, 20(4), 633–664. https://doi.org/10.1007/s40804-019-00167-7.
Guptha, K. S. K. & Rao, R. P. (2018). The causal relationship between financial development and economic growth: an experience with BRICS economies. Journal of Social and Economic Development, 20(2), 308-326. doi:10.1007/s40847-018-0071-5.
Guru, B. K. & Yadav, I. S. (2019). Financial development and economic growth: panel evidence from BRICS. Journal of Economics, Finance and Administrative Science, 24(47), 113-126. doi:10.1108/jefas-12-2017-0125.
Hasyim, S., Zulhilmi, M. & Amri, K. (2019). Is there a causality relationship between law enforcement, crime rates, and economic growth? An empirical evidence from western Indonesia. Regional Science Inquiry, 11(3), 95-109.
Ikhsan, Fitri, C. D., Maulana, H., &Amri, K. (2020).Effect of inflation on total deposits and financing of sharia commercial banks: A monthly data evidence from Indonesia, Regional Science Inquiry, 12 (1), 103-114.
Kalantonis, P., Kallandranis, C., & Sotiropoulos, M. (2021). Leverage and firm performance: new evidence on the role of economic sentiment using accounting information, Journal of Capital Markets Studies. https://doi.org/10.1108/JCMS-10-2020-0042.
Kim, S., Saha, A. & Bose, S. (2020). Do capital expenditures influence earnings performance: Evidence from loss‐making firms. Accounting & Finance, 61, 2539-2575. doi:10.1111/acfi.12675.
Latif, E. (2015). A panel data analysis of the demand for electricity in Canada. Economic Papers: A Journal of Applied Economics and Policy, 34(3), 192–205. doi:10.1111/1759-3441.12103.
Maddala, G. S. & Wu, S. (1999). A comparative study of unit root tests with panel data and a new simple test. Oxford Bulletin of Economics and Statistics, 61(1), 631–652. doi:10.1111/1468-0084.0610s1631.
Mahembe, E., & Odhiambo, N. M. (2019). Foreign aid, poverty and economic growth in developing countries: A dynamic panel data causality analysis. Cogent Economics & Finance, 7(1). doi:10.1080/23322039.2019.1626321.
Mallick S. & Yang Y. (2014) Financing Patterns, Multinationals and Performance: Firm-level Evidence from 47 Countries. In: Temouri Y., Jones C. (eds) International Business and Institutions after the Financial Crisis. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137367204_12.
Mehrara, M. (2007). Energy consumption and economic growth: The case of oil exporting countries. Energy Policy, 35(5), 2939–2945.
Menegaki, A. N. (2019). The ARDL method in the energy-growth nexus field; best implementation strategies. Economies, 7(4), 105. doi:10.3390/economies7040105.
Muchtar, D., Mat Nor, F., Albra, W., Arifai, M., Ahmar, A. S., & Elgammal, M. M. (2018). Dynamic performance of Indonesian public companies: An analysis of financial decision behavior. Cogent Economics & Finance, 6(1), 1-14. doi:10.1080/23322039.2018.1488343.
Nazamuddin, B. S. & Amri, K. (2020).Does goods and services spending reduce income inequality? A panel data evidence from Indonesia. Regional Science Inquiry, 12(1), 87-102.
[OJK] Otoritas Jasa Keuangan. (2020). Statistik Perbankan Syariah Edisi April 2020 [Internet]. [diunduh 2020 Sep 1]. Tersedia pada: https://www.ojk.go.id/id/kanal/syariah/data-dan-statistik/statistik-perbankan-syariah/Documents/Pages/Statistik-Perbankan-Syariah---April-2020/SPS%20April%202020.pdf.
Pedroni, P. (1999). Critical values for cointegration tests in heterogeneous panels with multiple regressors. Oxford Bulletin of Economics and Statistics, 61(1), 653–670.
Petersen, M. A. & Rajan, R. G. (1994). The benefits of lending relationships: Evidence from small business data. The Journal of Finance, 49(1), 3–37. doi:10.1111/j.1540-6261.1994.tb04418.x.
Shafighi, N., Shaari, A. H., Gharleghi, B., Sarmidi, T., & Omar, K. (2016). Financial integration via panel cointegration approaches in ASEAN+5. Journal of Economic Studies, 43(1), 2–15. doi:10.1108/jes-08-2014-0141.
Shrestha, M. B. & Bhatta, G. R. (2018). Selecting appropriate methodological framework for time series data analysis. The Journal of Finance and Data Science, 4(2), 71–89.
Storey, D. J. (1994). New firm growth and bank financing. Small Business Economics, 6(2), 139–150. doi:10.1007/bf01065186.
Thampy, A. (2010). Financing of SME firms in India. IIMB Management Review, 22(3), 93–101. doi:10.1016/j.iimb.2010.04.011.
Tsuruta, D. (2015). Leverage and firm performance of small businesses: Evidence from Japan. Small Business Economics, 44(2), 385-410.
Ullah, B. & Wei, Z. (2017). Bank financing and firm growth: Evidence from transition economies. Journal of Financial Research, 40(4), 507–534. doi:10.1111/jfir.12133.
Westerlund, J. (2006). Some cautions on the use of the LLC panel unit root test. Maastricht Research School of Economics of Technology and Organization (METEOR).
Wolters, J. & Hassler, U. (2006). Unit root testing. Allgemeines Statistisches Archiv, 90(1), 43–58. doi:10.1007/s10182-006-0220-6.
Zivot, E. & Wang, J. (2003). Modeling Financial Time Series with S-Plus. New York (US), Springer.