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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
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    References listed on IDEAS

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    1. Xolmurotov Fozil Saribayevich & Xolmuratov Xolilla Sariyevich & Sukhrob Davlatov & Hulkar Turobova & Sobirjon Ruziyev, 2024. "Analysis of Factors Affecting CO2 Emissions: In the Case of Uzbekistan," International Journal of Energy Economics and Policy, Econjournals, vol. 14(4), pages 207-215, July.

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    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

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