Search Articles & Publications

Showing 2 articles found for "Lerner"

Testing The Marshall-Lerner Condition on Indonesia's Trade Balance with The Five Biggest Trading Partners

Celvin Hamid, Muhammad, Nirmala, Tiara, Awaluddin, Imam
Abstract: The Marshall-Lerner Condition is a theory that a trade balance deficit can be eliminated through currency depreciation, if in the long term the absolute number of long-term export and import demand elasticities is greater… r than one. Initially, exchange rate depreciation will have a negative impact on trade through two methods, namely changes in volume and changes in value. This study aims to test whether the Marshall-Lerner Condition fulfilled in Indonesia's bilateral trade balance with the five largest trading partners using the Ordinary Least Squares method and in the observation period 2010.1-2022.12. The results of the Marshall-Lerner Condition study that one of Indonesia's five largest trading partners, namely China, the Marshall-Lerner Condition is met. While for Indonesia's other four largest trading partners, namely Japan, the US, the European Union and Singapore, Indonesia's largest trading partners are uncertain whether they meet the Marshall-Lerner Condition or not.

The Effect of Business Model on Financial Performance of Banking Companies in ASEAN and MENA

Yulia Astuti, Niken, Nazir Ahmad, Gatot, Warokka, Ari
Abstract: This research is expected to determine the influence of business models on financial performance as measured by market power. This research involves conventional banking in the ASEAN and MENA regions which have available… data for the period 2010 to 2019 to avoid the influence of the Global Financial Crisis and the Covid 19 Pandemic. This research uses Panel Data analysis techniques, which is a combination of time series data and cross section data. In measuring banking competition, researchers use the Lerner Index. The Lerner Index is an indicator of the level of market power that holds a strong position in measuring banking competition, the higher the Lerner Index value, the greater the bank's power in controlling the market, resulting in lower levels of banking competition. The results of this research indicate that there is a positive influence between the Business Model and Market Power both in the ASEAN region and in the MENA region. This suggests that choosing the right business model can generate sustainable competitive advantages and higher financial performance for banks that adopt it.