ANALYSIS OF THE INFLUENCE OF UNEMPLOYMENT VARIABLES ON ECONOMIC GROWTH IN CENTRAL KALIMANTAN USING THE ERROR CORRECTION MODEL (ECM) APPROACH

Authors

  • Rima Harati Universitas Palangkaraya

DOI:

https://doi.org/10.61397/mfc.v1i3.136

Keywords:

Unemployment, economic growth, central kalimantan

Abstract

The objective of this study is to examine the impact of unemployment variables on Gross Regional Domestic Product (GRDP) by employing the Error Correction Model methodology. This research is conducted in Central Kalimantan from 2012 to 2023. According to the cointegration testing findings using the ECM approach, the probability of the unemployment variable is 0.3788, which is greater than the significance level of 0.05. There is a lack of cointegration or long-term balance relationship between the variables, which means that testing cannot be conducted over an extended period of time. The ECM test findings indicate that there is no significant short-term impact of the unemployment variable on GRDP in Central Kalimantan. This is supported by the probability value of the unemployment variable, which is 0.2660, above the threshold of 0.05. According to the classical assumption test, there are no signs of autocorrelation in the research model. Additionally, the Jarque Berra probability value of 0.764092 is greater than 0.05, indicating that there are no signs of heteroscedasticity. Therefore, the research model can be considered normally distributed.

References

Angelina, S., & Nugraha, N. M. (2020). Effects of Monetary Policy on Inflation and National Economy Based on Analysis of Bank Indonesia Annual Report. Technium Social Sciences Journal, 10, 423.

Bonokeling, D. E., Sholeh, M., & Mispandi, M. (2022). The Effect of Investment, National Government Expenditure, Exports, and Imports on Indonesia’s Economic Growth. Jurnal Ekonomi Dan Pembangunan, 30(1), Article 1. https://doi.org/10.14203/JEP.30.1.2022.56-69

Buthelezi, E. M. (2023). Impact of government expenditure on economic growth in different states in South Africa. Cogent Economics & Finance, 11(1), 2209959. https://doi.org/10.1080/23322039.2023.2209959

Hlongwane, N. W., Mmutle, T. D., & Daw, O. D. (2021). THE RELATIONSHIP BETWEEN GOVERNMENT EXPENDITURE AND ECONOMIC GROWTH IN SOUTH AFRICA FROM 1981-2019: AN ARDL AND ECM APPROACH. International Journal of Economics and Finance Studies, 13(2), 131–159.

Jaya, I. M. L. M. (2020). Metode Penelitian Kuantitatif dan Kualitatif: Teori, Penerapan, dan Riset Nyata. Anak Hebat Indonesia.

Leasiwal, T. C. (2013). THE ANALYSIS OF INDONESIA ECONOMIC GROWTH: A STUDY IN SIX BIG ISLANDS IN INDONESIA. Journal of Economics, Business, and Accountancy Ventura, 16(1), Article 1. https://doi.org/10.14414/jebav.v16i1.121

Maulana, H., Sholahuddin, M., Anas, M., & Zulfikar, Z. (2023). Proceedings of the International Conference on Economics and Business Studies (ICOEBS-22-2). Springer Nature.

Muttaqin, T. F., Masbar, R., & Jamal, A. (2023). Poverty in Indonesia: An Application of Error Correction Model (ECM) Approach. International Journal of Advances in Social Sciences and Humanities, 2(1), Article 1. https://doi.org/10.56225/ijassh.v2i1.113

Oseni, I. O., & Oyelade, A. O. (2023). Effect of Capital Expenditure on Unemployment Rate in Nigeria. African Journal of Economic Review, 11(3), Article 3.

Pambayun, D. (2021). Indicators of the association of Unemployment in Indonesia with the Level of Employment Opportunity, GDP, and SER. Research Horizon, 1(5), Article 5. https://doi.org/10.54518/rh.1.5.2021.189-206

Pandusetya, D. C., Maskie, G., & Muljaningsih, S. (2021). ANALYSIS OF THE INFLUENCE OF GOVERNMENT EXPENDITURE, INVESTMENT, AND LABOR FORCE ON ECONOMIC GROWTH IN MALANG REGENCY 2000-2018. 24(1).

Purwanza, S. W. (2022). METODOLOGI PENELITIAN KUANTITATIF, KUALITATIF DAN KOMBINASI. Cv. Media Sains Indonesia.

Runtunuwu, P. C. H., & Karim, Z. A. (2023). Does government expenditure affect economic growth and people’s welfare? : Evidance from North Maluku. Jurnal Mantik, 7(2), Article 2. https://doi.org/10.35335/mantik.v7i2.3796

Silvia, E., Sihotang, N. V., & Sihotang, D. (2023). Causality Analysis of Inflation and Economic Growth Using the Error Correction Model (ECM). Indonesia Accounting Research Journal, 11(1), Article 1. https://doi.org/10.35335/iacrj.v11i1.212

Siswantoro, S. (2022). Can the integration between Islamic social finance and Islamic commercial finance tackle poverty in Indonesia? Jurnal Ekonomi & Keuangan Islam, 236–249. https://doi.org/10.20885/JEKI.vol8.iss2.art7

Solarin, S. A., & Shahbaz, M. (2015). Natural gas consumption and economic growth: The role of foreign direct investment, capital formation and trade openness in Malaysia. Renewable and Sustainable Energy Reviews, 42, 835–845. https://doi.org/10.1016/j.rser.2014.10.075

Tanaya, O., & Suyanto, S. (2023). Investigating the Role of Foreign Direct Investment on Youth Unemployment Rate in Indonesia. Binus Business Review, 14(2), Article 2.

Wau, T. (2022). Economic Growth, Human Capital, Public Investment, and Poverty in Underdeveloped Regions in Indonesia. Jurnal Ekonomi & Studi Pembangunan, 23(2), Article 2. https://doi.org/10.18196/jesp.v23i2.15307

Winarni, E. W. (2021). Teori dan Praktik Penelitian Kuantitatif, Kualitatif, PTK, R & D. Bumi Aksara.

Downloads

Published

2024-04-21

How to Cite

Harati, R. (2024). ANALYSIS OF THE INFLUENCE OF UNEMPLOYMENT VARIABLES ON ECONOMIC GROWTH IN CENTRAL KALIMANTAN USING THE ERROR CORRECTION MODEL (ECM) APPROACH. Multifinance, 1(3 Maret), 272–284. https://doi.org/10.61397/mfc.v1i3.136