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All Journal Journal of Management, Accounting, General Finance and International Economic Issues (MARGINAL) Jurnal Ekonomi Kreatif dan Manajemen Bisnis Digital (JEKOMBITAL)
Tangguh Pratysto
Department of Economics and Development Studies, Faculty of Economics and Business, Universitas Diponegoro, Semarang, Indonesia
Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

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The Role of Economic Growth, Income Inequality, and Social Assistance in Shaping Poverty Dynamics in Central Java Maulana Ghani Yusuf; Tangguh Pratysto
JOURNAL OF MANAGEMENT, ACCOUNTING, GENERAL FINANCE AND INTERNATIONAL ECONOMIC ISSUES Vol. 5 No. 2 (2026): MARCH
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/marginal.v5i2.2140

Abstract

Poverty remains a development challenge, particularly those with low economic growth and poorly distributed social welfare. Despite high economic growth, poverty reduction often remains uneven, demonstrating the complex interactions between growth, income distribution, labor market conditions, and the social assistance safety net. This study aims to examine the factors influencing poverty, their relationship to economic growth, income inequality, unemployment, and the social assistance safety net in Central Java. Using a quantitative panel data methodology, this study analyses data on the variables used from 2019 to 2023. A fixed effects model with robust standard errors is used to consistently and effectively estimate the relationship between the determinants of poverty. The results of this study indicate that economic growth, particularly GDP, can significantly reduce poverty. Then income inequality also significantly influences poverty dynamics. Social assistance is positively related to poverty, meaning it effectively serves as a tool to help people avoid falling into poverty. Meanwhile, unemployment has an insignificant impact on poverty. It follows from the above that the poverty-reduction strategy in Central Java should not be oriented solely to the growth path but should be coupled with tax reform integrated into social assistance packages to improve targeting efficiency and sustainability. 
THE ROLE OF DOMESTIC AND FOREIGN INVESTMENTS IN REDUCING UNEMPLOYMENT IN ASEAN: A 1999-2023 PANEL ARDL ANALYSIS Tangguh Pratysto
Jurnal Ekonomi Kreatif dan Manajemen Bisnis Digital Vol 3 No 3 (2025): FEBRUARI
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/jekombital.v3i3.914

Abstract

Unemployment is a challenge in economic development in ASEAN countries because its members are mostly developing countries that have market potential in Asia. Many countries in ASEAN face a mismatch in workforce skills, high levels of workers in the informal sector, and limited job opportunities for less skilled job seekers. Therefore, the government needs to understand how FDI and domestic investment affect unemployment in ASEAN in order to formulate short-term and long-term public policies to optimize investment strategies to create sustainable jobs. This study analyzes the impact of domestic investment per GDP and FDI per GDP on unemployment in ASEAN countries in the period 1999-2023. This study uses the Panel Autoregressive Distributed Lag analysis method to see the short-term and long-term effects. The results of the research show that domestic investment per GDP and unemployment have no impact in the short term but have a negative and significant effect in the long term. Then, FDI per GDP and unemployment have a positive and significant effect in the short term but have a negative and significant effect in the long term. In conclusion, foreign and domestic investment has a role in reducing unemployment in the long term and needs to be encouraged by appropriate policies.
Co-Authors Maulana Ghani Yusuf