Causality Implications of Unemployment, Inflation, and Poverty in Indonesia

Dea Rustami (Universitas Bengkulu)
BIE Indraswanti (Universitas Bengkulu)
Mery Anitasari (Universitas Bengkulu)
Lela Rospida (Universitas Bengkulu)

Proceedings of Bengkulu International Conference on Economics, Management, Business, and Accounting
Vol. 1 (2023): Proceeding Bicemba

This study aims to analyze the causal relationship between unemployment, inflation, and poverty in Indonesia. The research methodology employed Granger causality test and time series regression analysis. The findings indicate a one-way causal relationship between the variables of unemployment and poverty. Specifically, unemployment has been shown to affect the level of poverty in Indonesia. Furthermore, the study also identifies a one-way causal relationship between the variables of poverty and inflation.