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All Journal Jurnal Ekonomi dan Studi Pembangunan (JESP)
Aranka Ignasiak-Szulc
Department of Economic Policy and Regional Studies, Nicolaus Copernicus University, Poland
Economics, Econometrics & Finance

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Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic Vita Kartika Sari; Malik Cahyadin; Aranka Ignasiak-Szulc; Riayati Ahmad
Jurnal Ekonomi dan Studi Pembangunan Vol 15, No 1 (2023)
Publisher : Universitas Negeri Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.17977/um002v15i12023p074

Abstract

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.           
Co-Authors Malik Cahyadin Riayati Ahmad Vita Kartika Sari