Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic

During the COVID-19 pandemic, poverty and unemployment rates obstruct economic growth in Indonesia. Therefore, this study examines the threshold levels of poverty and unemployment rates on economic growth for 34 provinces in Indonesia in 2020 and 2021. Cross-section threshold regression is employed....

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Huvudupphovsmän: Vita Kartika Sari, Malik Cahyadin, Aranka Ignasiak-Szulc, Riayati Ahmad
Materialtyp: Artikel
Språk:Indonesian
Publicerad: Universitas Negeri Malang 2023-04-01
Serie:Jurnal Ekonomi dan Studi Pembangunan
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Länkar:https://journal2.um.ac.id/index.php/JESP/article/view/33116
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author Vita Kartika Sari
Malik Cahyadin
Aranka Ignasiak-Szulc
Riayati Ahmad
author_facet Vita Kartika Sari
Malik Cahyadin
Aranka Ignasiak-Szulc
Riayati Ahmad
author_sort Vita Kartika Sari
collection DOAJ
description During the COVID-19 pandemic, poverty and unemployment rates obstruct economic growth in Indonesia. Therefore, this study examines the threshold levels of poverty and unemployment rates on economic growth for 34 provinces in Indonesia in 2020 and 2021. Cross-section threshold regression is employed. Besides, the robustness check sets a non-linear cross-section regression. The findings reveal that threshold poverty rates in 2020 and 2021 were about 13.97% and 6.38%, respectively. At the same time, threshold unemployment rates were about 3.09% and 4.71%, respectively. Poverty and unemployment rates contributed significantly under U-shape in 2021 and 2020, respectively. The local government can emphasize lower poverty and unemployment rates to enhance economic growth in the long-term.
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spelling doaj.art-1c6423d4ad4e48dca61a7e2801c8e7a92024-07-01T18:54:44ZindUniversitas Negeri MalangJurnal Ekonomi dan Studi Pembangunan2086-15752502-71152023-04-01151748610.17977/um002v15i12023p07410122Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 PandemicVita Kartika Sari0Malik Cahyadin1Aranka Ignasiak-Szulc2Riayati Ahmad3Universitas Sebelas MaretUNSDepartment of Economic Policy and Regional Studies, Nicolaus Copernicus University, PolandFakulti Ekonomi dan Pengurusan UKM Bangi, Selangor 43000 MalaysiaDuring the COVID-19 pandemic, poverty and unemployment rates obstruct economic growth in Indonesia. Therefore, this study examines the threshold levels of poverty and unemployment rates on economic growth for 34 provinces in Indonesia in 2020 and 2021. Cross-section threshold regression is employed. Besides, the robustness check sets a non-linear cross-section regression. The findings reveal that threshold poverty rates in 2020 and 2021 were about 13.97% and 6.38%, respectively. At the same time, threshold unemployment rates were about 3.09% and 4.71%, respectively. Poverty and unemployment rates contributed significantly under U-shape in 2021 and 2020, respectively. The local government can emphasize lower poverty and unemployment rates to enhance economic growth in the long-term.https://journal2.um.ac.id/index.php/JESP/article/view/33116threshold level, non-linear, poverty, unemployment, economic growth
spellingShingle Vita Kartika Sari
Malik Cahyadin
Aranka Ignasiak-Szulc
Riayati Ahmad
Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic
Jurnal Ekonomi dan Studi Pembangunan
threshold level, non-linear, poverty, unemployment, economic growth
title Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic
title_full Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic
title_fullStr Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic
title_full_unstemmed Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic
title_short Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic
title_sort threshold levels of poverty and unemployment rates on economic growth in indonesia during covid 19 pandemic
topic threshold level, non-linear, poverty, unemployment, economic growth
url https://journal2.um.ac.id/index.php/JESP/article/view/33116
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