IDEAS home Printed from https://ideas.repec.org/a/spr/minecn/v38y2025i1d10.1007_s13563-024-00448-9.html
   My bibliography  Save this article

Vector autoregressive model: to analyze the influence of the agriculture, mining and quarrying sectors on local revenues

Author

Listed:
  • Asnawi

    (Universitas Malikussaleh)

  • Naufal Bachri

    (Universitas Malikussaleh)

  • Muhammad Roni

    (Universitas Malikussaleh)

Abstract

This study examines the influence of the agricultural, mining, and quarrying sectors on local revenues in special autonomous provinces in Indonesia. This study uses time-series data from 1990 to 2021 and is analyzed using the Vector Auto-Regressive (VAR) Model. The results indicate that the agricultural sector did not influence local local revenues. Agricultural land in special autonomous provinces in Indonesia is highly extensive but cannot be managed efficiently. Likewise, the mining and quarrying sector did not affect local revenues. The mining and quarrying sector has high production but is income for the central government and not for regional governments. Apart from that, the agricultural sector influenced the mining and quarrying sector. Likewise, the mining and quarrying sector also influenced the agricultural sector in the special autonomous provinces in Indonesia. However, local revenues are only influenced by elements of local revenues itself, such as regional taxes, regional levies, results from the management of separated regional assets, and other legitimate local revenues. This study has important implications for the implementation of the Aceh Government Law No. 11 of 2006 concerning the distribution of natural resource revenues in Indonesia. Further researchers can then focus on local revenues from Gross Regional Domestic Product (GRDP) as a reflection of local revenues in special autonomous provinces in Indonesia.

Suggested Citation

  • Asnawi & Naufal Bachri & Muhammad Roni, 2025. "Vector autoregressive model: to analyze the influence of the agriculture, mining and quarrying sectors on local revenues," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 38(1), pages 51-58, March.
    • Handle: RePEc:spr:minecn:v:38:y:2025:i:1:d:10.1007_s13563-024-00448-9
    DOI: 10.1007/s13563-024-00448-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13563-024-00448-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13563-024-00448-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    2. Owusu, Obed & Wireko, Ishmael & Mensah, Albert Kobina, 2016. "The performance of the mining sector in Ghana: A decomposition analysis of the relative contribution of price and output to revenue growth," Resources Policy, Elsevier, vol. 50(C), pages 214-223.
    3. Ganchimeg Gombodorj & Karoly Peto, 2022. "Impact Of The Mining And Agriculture Sector On The Mongolian Economy," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 7(1), pages 74-85, March.
    4. Konte, Maty & Vincent, Rose Camille, 2021. "Mining and quality of public services: The role of local governance and decentralization," World Development, Elsevier, vol. 140(C).
    5. Loizou, Efstratios & Karelakis, Christos & Galanopoulos, Konstantinos & Mattas, Konstadinos, 2019. "The role of agriculture as a development tool for a regional economy," Agricultural Systems, Elsevier, vol. 173(C), pages 482-490.
    6. Paulo De Sa, 2019. "Mining and sustainable development: territorializing the mining industry," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 32(2), pages 131-143, July.
    7. Aguirre Unceta, Rafael, 2021. "The economic and social impact of mining-resources exploitation in Zambia," Resources Policy, Elsevier, vol. 74(C).
    8. Ismael Karidio & David Talbot, 2020. "Controversy in mining development: a study of the defensive strategies of a mining company," Journal of Sustainable Finance & Investment, Taylor & Francis Journals, vol. 10(1), pages 18-43, January.
    9. Jarosław Brodny & Magdalena Tutak, 2020. "The Use of Artificial Neural Networks to Analyze Greenhouse Gas and Air Pollutant Emissions from the Mining and Quarrying Sector in the European Union," Energies, MDPI, vol. 13(8), pages 1-31, April.
    10. repec:ocp:rpaper:pp-2110 is not listed on IDEAS
    11. Li, Yin & Arora, Sanjay & Youtie, Jan & Shapira, Philip, 2018. "Using web mining to explore Triple Helix influences on growth in small and mid-size firms," Technovation, Elsevier, vol. 76, pages 3-14.
    12. Landry Signé & Chelsea Johnson, 2021. "Africa’s Mining Potential: Trends, Opportunities, Challenges and Strategies," Research papers & Policy papers on Commodities & Energy 2104, Policy Center for the New South.
    13. Hyginus Emeka Nwosu & Benedette Nneka Okezie & Robert Azu Nnachi, 2020. "Quarry business and internally generated revenue in Ebonyi state," African Journal of Accounting, Auditing and Finance, Inderscience Enterprises Ltd, vol. 7(2), pages 105-125.
    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. de Mendonça, Helder Ferreira & Tiberto, Bruno Pires, 2014. "Public debt and social security: Level of formality matters," Economic Modelling, Elsevier, vol. 42(C), pages 490-507.
    2. Zhuo Qiao & Keith Lam, 2011. "Granger causal relations among Greater China stock markets: a nonlinear perspective," Applied Financial Economics, Taylor & Francis Journals, vol. 21(19), pages 1437-1450.
    3. Ratti, Ronald A. & Vespignani, Joaquin L., 2013. "Crude oil prices and liquidity, the BRIC and G3 countries," Energy Economics, Elsevier, vol. 39(C), pages 28-38.
    4. Nguyen, Tien-Trung & Wu, Yang-Che & Ke, Mei-Chu & Liao, Tung Liang, 2022. "Can direct government intervention save the stock market?," The Quarterly Review of Economics and Finance, Elsevier, vol. 84(C), pages 271-284.
    5. Juan Carlos Cuestas & Karsten Staehr, 2014. "The great (De)leveraging in the GIIPS countries. Domestic credit and net foreign liabilities 1998–2013," Bank of Estonia Working Papers wp2014-4, Bank of Estonia, revised 10 Oct 2014.
    6. Mohcine Bakhat & Klaas WŸrzburg, 2013. "Co-integration of Oil and Commodity Prices: A Comprehensive ApproachAbstract," Working Papers fa05-2013, Economics for Energy.
    7. Usama Almulali & Che Normee Binti Che Sab, 2013. "Exploring the impact of oil revenues on OPEC members' macroeconomy," OPEC Energy Review, Organization of the Petroleum Exporting Countries, vol. 37(4), pages 416-428, December.
    8. Nyakabawo, Wendy & Miller, Stephen M. & Balcilar, Mehmet & Das, Sonali & Gupta, Rangan, 2015. "Temporal causality between house prices and output in the US: A bootstrap rolling-window approach," The North American Journal of Economics and Finance, Elsevier, vol. 33(C), pages 55-73.
    9. Gebre-Mariam, Yohannes Kebede, 2011. "Testing for unit roots, causality, cointegration, and efficiency: The case of the northwest US natural gas market," Energy, Elsevier, vol. 36(5), pages 3489-3500.
    10. Mauricio, Jose Alberto, 2006. "Exact maximum likelihood estimation of partially nonstationary vector ARMA models," Computational Statistics & Data Analysis, Elsevier, vol. 50(12), pages 3644-3662, August.
    11. Gómez-Puig, Marta & Sosvilla-Rivero, Simón, 2014. "Causality and contagion in EMU sovereign debt markets," International Review of Economics & Finance, Elsevier, vol. 33(C), pages 12-27.
    12. Laha, Arindam & Sinha, Subhra, 2018. "Price Transmission and Volatility Spillover in Food Grain Market: Experience from Indian vis-à-vis World Market," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 41(01), pages 31-64, March.
    13. Erie Febrian & Aldrin Herwany, 2009. "Volatility Forecasting Models and Market Co-Integration: A Study on South-East Asian Markets," Working Papers in Economics and Development Studies (WoPEDS) 200911, Department of Economics, Padjadjaran University, revised Sep 2009.
    14. Tang, Chor Foon & Tan, Eu Chye, 2015. "Does tourism effectively stimulate Malaysia's economic growth?," Tourism Management, Elsevier, vol. 46(C), pages 158-163.
    15. Silvério, Renan & Szklo, Alexandre, 2012. "The effect of the financial sector on the evolution of oil prices: Analysis of the contribution of the futures market to the price discovery process in the WTI spot market," Energy Economics, Elsevier, vol. 34(6), pages 1799-1808.
    16. Ansgar Belke & Robert Czudaj, 2010. "Is Euro Area Money Demand (Still) Stable? Cointegrated VAR Versus Single Equation Techniques," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(4), pages 285-315.
    17. Bowei Guo & Giorgio Castagneto Gissey, 2019. "Cost Pass-through in the British Wholesale Electricity Market: Implications of Brexit and the ETS reform," Working Papers EPRG1937, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    18. A. Malliaris & Mary Malliaris, 2013. "Are oil, gold and the euro inter-related? Time series and neural network analysis," Review of Quantitative Finance and Accounting, Springer, vol. 40(1), pages 1-14, January.
    19. repec:pra:mprapa:40579 is not listed on IDEAS
    20. Frank Iyekoretin Ogbeide & Hilary Kanwanye & Sunday Kadiri, 2016. "Revisiting the Determinants of Unemployment in Nigeria: Do Resource Dependence and Financial Development Matter?," African Development Review, African Development Bank, vol. 28(4), pages 430-443, December.
    21. Derek Bond & Michael J. Harrison & Edward J. O'Brien, 2005. "Testing for Long Memory and Nonlinear Time Series: A Demand for Money Study," Trinity Economics Papers tep20021, Trinity College Dublin, Department of Economics.

    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:spr:minecn:v:38:y:2025:i:1:d:10.1007_s13563-024-00448-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.