IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-02-43.html
   My bibliography  Save this article

The Essence of Fuel and Energy Consumptions to Stimulate MSMEs Industries and Exports: An Empirical Story for Indonesia

Author

Listed:
  • Adi Wijaya

    (Department of Economics, Faculty of Economics and Business, Mulawarman University, Samarinda 75117, East Borneo, Indonesia)

  • Muhammad Awaluddin

    (Department of Economics, Faculty of Economics and Business, Mulawarman University, Samarinda 75117, East Borneo, Indonesia)

  • A. Erwin Kurniawan

    (Department of Economics, Faculty of Economics and Business, Mulawarman University, Samarinda 75117, East Borneo, Indonesia)

Abstract

Economics and the environment are issues that never end for debate. As long as the two are not sustainable, they will continue to be highlighted in macroeconomic principles. In addition, economic growth (GDP) is not the only principal topic that is the focus of attention from academics, practitioners, and the government. The objectivity of this research is to dissect the relationship between coal consumptions, electricity consumptions, and oil consumptions on MSMEs and contributors of exports of goods and services in Indonesia. Path analysis supports the test instrument. We implement secondary data to cover seven periods (2014-2020). Regarding the research flow, there are three problem formulation packages that must be investigated, including two direct paths and mediation pathways. The identification results report several important inventions. Coal consumptions and oil consumptions have triggered a positive increase in MSMEs and contributors to exports of goods and services. From another scope, electricity consumption as empirical evidence that affects the contribution of exports of goods and services through MSMEs. The findings of this study provide valuable insights into the sustainability of the MSME industry, creating added value for Indonesian exports, without ignoring regulations related to fuel and energy.

Suggested Citation

  • Adi Wijaya & Muhammad Awaluddin & A. Erwin Kurniawan, 2022. "The Essence of Fuel and Energy Consumptions to Stimulate MSMEs Industries and Exports: An Empirical Story for Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 386-393, March.
    • Handle: RePEc:eco:journ2:2022-02-43
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/12645/6700
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/12645
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sam, B.A. TENDE & Ezie OBUMNEKE, 2014. "Impact of Petroleum on SMEs Growth in Nigeria," International Journal of Entrepreneurial Knowledge, Center for International Scientific Research of VSO and VSPP, vol. 2(2), pages 4-14, December.
    2. Suparjo Suparjo & Surya Darma & Nia Kurniadin & Jati Kasuma & Priyagus Priyagus & Dio Caisar Darma & Haryadi Haryadi, 2021. "Indonesia s New SDGs Agenda for Green Growth Emphasis in the Energy Sector," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 395-402.
    3. David Greenaway & Richard Kneller, 2005. "Exporting And Productivity: Theory, Evidence And Future Research," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 50(spec0), pages 303-312.
    4. Sovacool, Benjamin K., 2017. "Reviewing, Reforming, and Rethinking Global Energy Subsidies: Towards a Political Economy Research Agenda," Ecological Economics, Elsevier, vol. 135(C), pages 150-163.
    5. Y. Yolanda, 2017. "Analysis of Factors Affecting Inflation and its Impact on Human Development Index and Poverty in Indonesia," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 38-56.
    6. Priyagus Priyagus, 2021. "Does Economic Growth Efficient and Environmental Safety? The Case of Transportation Sector in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 365-372.
    7. Robi Kurniawan & Gregory P. Trencher & Achmed S. Edianto & Imam E. Setiawan & Kazuyo Matsubae, 2020. "Understanding the Multi-Faceted Drivers of Increasing Coal Consumption in Indonesia," Energies, MDPI, vol. 13(14), pages 1-22, July.
    8. Muliadi Muliadi & Dio Caisar Darma & Jati Kasuma, 2020. "MSMEs as mediation in the effects of investment credit, interest rates, and labor on economic growth: Evidence from Indonesia," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 01-12, April.
    9. Jan Peter Wogart, 2010. "Global booms and busts: How is Brazils middle class faring?," Brazilian Journal of Political Economy, Center of Political Economy, vol. 30(3), pages 381-400.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Argueyrolles, Robin & Delzeit, Ruth, 2022. "The interconnections between Fossil Fuel Subsidy Reforms and biofuels," Conference papers 333492, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Rupayan Pal & Marcella Scrimitore & Ruichao Song, 2023. "Externalities, entry bias, and optimal subsidy policy for cleaner environment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 25(1), pages 90-122, February.
    3. Éltető, Andrea & Udvari, Beáta, 2018. "Nemzetköziesedés a válság után - a magyar kis- és középvállalatok exportjára ható tényezők [Internationalisation since the crisis - factors affecting exports by small and medium-sized Hungarian ent," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(4), pages 402-425.
    4. Magnus Lodefalk, 2014. "The role of services for manufacturing firm exports," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(1), pages 59-82, February.
    5. Nagara, Patria & , yolanda, 2020. "The economic growth and affecting factors in Sumatera island," OSF Preprints rfcuj, Center for Open Science.
    6. Susann Stritzke & Malcolm Bricknell & Matthew Leach & Samir Thapa & Yesmeen Khalifa & Ed Brown, 2023. "Impact Financing for Clean Cooking Energy Transitions: Reviews and Prospects," Energies, MDPI, vol. 16(16), pages 1-26, August.
    7. Andrea Molocchi, 2021. "Circular Economy and Environmental Sustainability: A Policy Coherence Analysis of Current Italian Subsidies," Sustainability, MDPI, vol. 13(15), pages 1-38, July.
    8. Lu, Zhou & Mahalik, Mantu Kumar & Mahalik, Hrushikesh & Zhao, Rui, 2022. "The moderating effects of democracy and technology adoption on the relationship between trade liberalisation and carbon emissions," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    9. Sana Sardar & Dilawar Khan & Alam Khan & Róbert Magda, 2022. "The Influence of Aid for Trade on Human Development in South Asia," Sustainability, MDPI, vol. 14(19), pages 1-12, September.
    10. Richard Harris & Qian Cher Li, 2007. "Learning-by-Exporting? Firm-Level Evidence for UK Manufacturing and Services Sectors," Working Papers 2007_22, Business School - Economics, University of Glasgow.
    11. Chepeliev, Maksym & van der Mensbrugghe, Dominique, 2017. "Global Energy Subsidies Reform: Inclusive Approaches to Welfare Assessment," Conference papers 332821, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    12. Antimiani, Alessandro & Costantini, Valeria & Paglialunga, Elena, 2023. "Fossil fuels subsidy removal and the EU carbon neutrality policy," Energy Economics, Elsevier, vol. 119(C).
    13. Astrida Miceikienė & Kristina Gesevičienė & Daiva Rimkuvienė, 2021. "Assessment of the Dependence of GHG Emissions on the Support and Taxes in the EU Countries," Sustainability, MDPI, vol. 13(14), pages 1-15, July.
    14. Salem, Mohammed Z. & Ertz, Myriam & Sarigӧllü, Emine, 2021. "Demarketing strategies to rationalize electricity consumption in the Gaza Strip-Palestine," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    15. Hadi Sasana & Achma Hendra Setiawan & Fitri Ariyanti & Imam Ghozali, 2017. "The Effect of Energy Subsidy on the Environmental Quality in Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 7(5), pages 245-249.
    16. Kuikeu, Oscar, 2022. "Export performance and productivity: Rationale for a macro level evidence in Economic Community of Central African States (ECCAS). Case of AFCON 2021," MPRA Paper 111953, University Library of Munich, Germany.
    17. Diana Lestari & Made Setini & Dio Caisar Darma & Siti Amalia, 2020. "International trade in the Covid-19 outbreak: Is the digital economy working?," International Journal of Business and Management, International Institute of Social and Economic Sciences, vol. 8(2), pages 86-92, November.
    18. Prajukta Tripathy & Pragyanrani Behera & Bikash Ranjan Mishra, 2023. "Study of linkages between productivity, export, and outward foreign direct investment: An empirical perspective of Indian manufacturing industries," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 1527-1548, April.
    19. Ilyas, Rubina & Hussain, Khadim & Ullah, Mehreen Zaid & Xue, Jianhong, 2022. "Distributional impact of phasing out residential electricity subsidies on household welfare," Energy Policy, Elsevier, vol. 163(C).
    20. Ying, Loo Sze & Harun, Mukaramah, 2019. "Responses of Firms and Households to Government Expenditure in Malaysia: Evidence for the Fuel Subsidy Withdrawal," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(2), pages 29-39.

    More about this item

    Keywords

    Coal; Oil; Electricity; MSMEs; Exports of goods and services; GDP; Path analysis;
    All these keywords.

    JEL classification:

    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2022-02-43. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.