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All Journal Signifikan : Jurnal Ilmu Ekonomi INOTEKS : Jurnal Inovasi Ilmu Pengetahuan, Teknologi, dan Seni JDM (Jurnal Dinamika Manajemen) JAM : Jurnal Aplikasi Manajemen Indonesian Journal of Business and Entrepreneurship (IJBE) Jurnal Penelitian Ekonomi dan Bisnis Journal of Indonesian Economy and Business Jurnal Ekonomi & Studi Pembangunan Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan Jurnal Ilmu Ekonomi dan Pembangunan Inovasi : Jurnal Ekonomi, Keuangan, dan Manajemen Agrisocionomics: Jurnal Sosial Ekonomi Pertanian Martabe : Jurnal Pengabdian Kepada Masyarakat Ecces: Economics, Social, and Development Studies Convergence : The Journal of Economic Development Jurnal Keuangan dan Akuntansi Terapan (KUAT) Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Efficient: Indonesian Journal of Development Economics
Malik Cahyadin
Faculty of Economics and Business, Universitas Sebelas Maret Surakarta Jalan Ir. Sutami No. 36A Surakarta, Central Java, Indonesia, Phone+62-271 647481
Agriculture, Biological Sciences & Forestry Arts Humanities Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Engineering Environmental Science Social Sciences Other

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Journal : Jurnal Perspektif Pembiayaan dan Pembangunan Daerah

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Assessing the unemployment rate as a mediator between SMEs and economic growth Cahyadin, Malik; Irianto, Heru; Ertimi, Basem
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Vol. 12 No. 5 (2024): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah
Publisher : Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22437/ppd.v12i5.37800

Abstract

Economic growth and unemployment reduction in developing countries can be strengthened by improving the business quality of SMEs. As SMEs dominate Indonesia’s industrial structure, this study examines their relationship with economic growth, with unemployment rates as a moderating variable, in West Java, Central Java, and East Java from 2015 to 2022. Using Structural Equation Modeling (SEM) on 96 observations, the findings reveal that the number of SME business units has a significant negative impact on the unemployment rate, whereas total assets have a positive impact. A higher asset value enhances the capacity for modernization and digitalization, which, in turn, reduces labor absorption and potentially increases unemployment. Additionally, a decline in the unemployment rate positively influences economic growth, which is consistent with Okun’s Law, though with a relatively low magnitude. These findings highlight the need for government policies to facilitate SME business development by improving production standards, expanding access to business capital, and enhancing market reach. This approach aligns with the UMKM Naik Kelas (SME Scale-Up) program, which aims to promote sustainable SME growth and economic resilience.
Co-Authors Aria Ganna Henryanto Arief Iman Santoso, Arief Iman Ariyani, Tia Putri Asri Laksmi Riani Ayuninggar, Lintang Banoon Sasmitasiwi Budhi Haryanto Dewi Ismoyowati, Dewi Dina Lusyana, Dina Dwiningtyas Padmaningrum, Dwiningtyas Emi Widiyanti Emi Widiyanti Ertimi, Basem Evi Gravitiani, Evi Hanifah, Autiya Za’im Mar’atu Hanifah, Haniruzila Hardjono, Retno Kusumastuti Harini Harini Hasana, Nurul Hermansyah Muttaqin, Hermansyah Heru Irianto Hunik Sri Runing S. Hunik Sri Runing Sawitri Intan Novela Q. A. Karunia, Nurul Yuniataqwa Khalid, Norlin Kirana, Leony Candra Law, Siong Hook Lely Ratwianingsih, Lely Lukman Hakim M. Ichsandimas W., M. Ichsandimas Mafruhah, Izza Muharromy, Ratih Evy Mulyadi Mulyadi Nurrachma, Elsa Adelia Nurul Istiqomah Pambayun, Osama Wara Pandhit, Tunjung Sekar Laksmi Qudsi, Rizal Muhaimin Rarastyasa, Rahma Anggana Rosdaliva, Mehilda Santoso, Ratna Endah Sari, Vita Kartika Sarmidi, Tamat Siti Aisyah Tri Rahayu, Siti Aisyah Tri Subekti, Ningam Suminah Suminah, Suminah Sutardi, Binar Satrio Thomas Stefanus Kaihatu Tri Mulyaningsih Tulus Tambunan Utari, Prahastiwi Wei, Yong Sze Wendra Hartono Widyamurti, Nidyah Yunastiti Purwaningsih, Yunastiti ’Aini, Qurrota