Article Sidebar

Download
Download Article

Main Article Content

Abstract

This study aims to examine the effect of investment, expenditure on unemployment, income inequality, and economic growth in the west of part of Indonesia. The research approach is quantitative with structural equation model as a statistical approach. The number of provinces taken in the west of region as many as 18 provinces consisting of Nanggroe Aceh Darussalam, North Sumatra, West Sumatra, Riau, Jambi, South Sumatra, Bengkulu, Lampung, Bangka Belitung, Riau Islands, DKI Jakarta, West Java, Central Java and East Java, Yogyakarta, Banten, West Kalimantan and Central Kalimantan. Result of this study indicates that economic growth has a similar effect produced by investment on the unemployment rate in the west of Indonesia. Investments made by the government are significantly negative, most of which are centered on supporting welfare and developing the human index. There are new findings in the study, namely the different effects caused by government spending on reducing the unemployment ratio. In the west of Indonesia area, this does not show a significant impact whether tested between government spending on unemployment rates or economic growth in east or west of Indonesia. This means that government spending still needs to be converted into various work programs to absorb labor permanently.

Keywords

Investment Expenditure Unemployment Inequality Income Economic Growth

Article Details

How to Cite
Islamiah, N., Rahmatia, R., Paddu, H. ., & Yusri Zamhuri, M. . (2020). Direct and Indirect Effect of Macro Economic Factors in the West of Indonesia. Golden Ratio of Social Science and Education, 1(1), 13–24. https://doi.org/10.52970/grsse.v1i1.107
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abulrub, A. G., Yin, Y., & Williams, M. A. (2012). Acceptance and Management of Innovation in SMEs : Immersive 3D visualization. 41, 304–314. https://doi.org/10.1016/j.sbspro.2012.04.035
  2. Adriana, D. (2014). Revisiting the Relationship between Unemployment Rates and Shadow Economy. A Toda-Yamamoto Approach for the Case of Romania. Procedia Economics and Finance, 10(14), 227–236. https://doi.org/10.1016/s2212-5671(14)00297-4
  3. Afidchao, M. M., Musters, C. J. M., Wossink, A., Balderama, O. F., & De Snoo, G. R. (2014). Analyzing the farm-level economic impact of GM corn in the Philippines. NJAS - Wageningen Journal of Life Sciences, 70, 113–121. https://doi.org/10.1016/j.njas.2014.05.008
  4. Castro, G. Á. (2012). Foreign direct investment in Mexico Determinants and its effect on income inequality. Contaduría y Administración, 58(4), 201–222. https://doi.org/10.1016/S0186-1042(13)71239-7
  5. Elshamy, H. (2013). The Relationship Between Unemployment and Output in Egypt. Procedia - Social and Behavioral Sciences, 81, 22–26. https://doi.org/10.1016/j.sbspro.2013.06.381
  6. Fan, W., Li, L., Wang, F., & Li, D. (2020). China Economic Review Driving factors of CO 2 emission inequality in China : The role of government expenditure. 64(September). https://doi.org/10.1016/j.chieco.2020.101545
  7. Kang, Y., Scott-Kennel, J., Battisti, M., & Deakins, D. (2021). Linking inward/outward FDI and exploitation/exploration strategies: Development of a framework for SMEs. International Business Review, 30(3), 101790. https://doi.org/10.1016/j.ibusrev.2020.101790
  8. Kudasheva, T., Kunitsa, S., & Mukhamediyev, B. (2015). Effects of Access to Education and Information-communication Technology on Income Inequality In Kazakhstan. Procedia - Social and Behavioral Sciences, 191, 940–947. https://doi.org/10.1016/j.sbspro.2015.04.459
  9. Lopes de Sousa Jabbour, A. B., Ndubisi, N. O., & Roman Pais Seles, B. M. (2020). Sustainable development in Asian manufacturing SMEs: Progress and directions. International Journal of Production Economics, 225(July 2019), 107567. https://doi.org/10.1016/j.ijpe.2019.107567
  10. Lyubimov, I. (2017). Income Inequality Revisited 60 Years Later: Piketty vs. Kuznets. Economic Policy (in Russian), 11(1), 27–42. https://doi.org/10.18288/1994-5124-2016-1-03
  11. Mahmood, Z. (1998). Michael E. Porter. The Competitive Advantage of Nations. New York: Free Press, 1990. 855 pages. Hardbound. UK£ 25. The Pakistan Development Review, 37(1), 90–94. https://doi.org/10.30541/v37i1pp.90-94
  12. Mihaiu, D. M., & Opreana, A. (2013). The Analysis of the Relationship between the Level of the Public Expenditure for Investments and de Degree of Development of the Society in Romania. Procedia Economics and Finance, 6(13), 654–661. https://doi.org/10.1016/s2212-5671(13)00185-8
  13. Qiong, L., & Junhua, H. (2015). Military Expenditure and Unemployment in China1. Procedia Economics and Finance, 30(15), 498–504. https://doi.org/10.1016/s2212-5671(15)01247-2
  14. Raišienė, A. G., Bagdonienė, J., & Bilan, Y. (2014). Inter-Institutional Interaction Results: The Effect of EU Programs on the Reduction of Long-term Unemployment. Procedia Economics and Finance, 16(May), 641–650. https://doi.org/10.1016/s2212-5671(14)00852-1
  15. Shen, W., Yang, S. C. S., & Zanna, L. F. (2018). Government spending effects in low-income countries. Journal of Development Economics, 133(November 2015), 201–219. https://doi.org/10.1016/j.jdeveco.2018.02.005
  16. Tang, L., Sun, S., & Yang, W. (2021). Does government education expenditure boost intergenerational mobility ? Evidence from China. International Review of Economics and Finance, 74(January), 13–22. https://doi.org/10.1016/j.iref.2021.02.001
  17. Wilhelm, C., & Maconachie, R. (2020). Exploring local content in Guinea's bauxite sector: Obstacles, opportunities, and future trajectories. Resources Policy, November, 101935. https://doi.org/10.1016/j.resourpol.2020.101935
  18. Zhan, Y., & Chen, K. Z. (2021). Building resilient food system amidst COVID-19: Responses and lessons from China. Agricultural Systems, 190 (February), 103102. https://doi.org/10.1016/j.agsy.2021.103102