cover
Contact Name
Safrilia Ayu Nani
Contact Email
bpjfeb@ub.ac.id
Phone
+6285708508515
Journal Mail Official
jdess@ub.ac.id
Editorial Address
Jl. MT Haryono No 165 Fakultas Ekonomi dan Bisnis Universitas Brawijaya
Location
Kota malang,
Jawa timur
INDONESIA
Journal of Development Economic and Social Studies (JDESS)
Published by Universitas Brawijaya
ISSN : -     EISSN : 29640083     DOI : 10.21776/ub.jdess
Core Subject : Economy,
Publish all forms of quantitative and qualitative research articles and other scientific studies related to the field of Economic and Social Studies.
Articles 415 Documents
Determinan of the Effects of Economic Factors on Informal Sector Labors: A Study of Java Island Virgilius Christyomukti; Bahtiar Fitanto
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

The informal sector persists as a critical challenge in labor market dynamics across developing countries, including Indonesia. Despite experiencing multiple economic cycles, the proportion of informal workers on Java Island consistently exceeded 50 percent during the 2017-2024 period, reflecting low productivity, limited social protection, and the loss of potential government tax revenues. This study examines the effects of Provincial Minimum Wage, GDP per capita, and educational attainment on informal employment across six provinces on Java Island from 2017 to 2024. Using Fixed Effect Model panel data regression, the analysis reveals that minimum wage regulations significantly increase informal sector participation, while economic growth significantly reduces it. Educational attainment, however, shows no significant effect on informal employment patterns. These findings validate Hernando de Soto's institutional theory linking regulatory burdens to informality and support Fei-Ranis structural transformation theory positioning economic growth as the driver of labor formalization. The insignificance of education is driven by several factors, primarily because the informal sector does not require formal educational qualifications as entry barriers, allowing workers with varying educational backgrounds to participate equally. Additionally, poor educational quality fails to equip workers with competencies that differentiate them for formal sector opportunities, creating a structural misalignment where education loses its market signaling value. Policy implications emphasize productivity-indexed minimum wage determination, accelerated inclusive economic growth, and educational reform addressing quality enhancement and labor market alignment to reduce informal employment dependency and improve worker welfare.
Investment, Trade, Human Capital, and Economic Growth Alika, Denisya; Suman, Agus
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

This study examines the relationship between investment, trade, human capital, and economic growth using regional panel data from Riau Islands Province, Indonesia. Investment, international trade integration, and labor quality are commonly regarded as major drivers of long-term growth, yet their effectiveness often varies across regions. This research employs panel data from seven cities during 2010–2024 and applies the Fixed Effect Model with Moderated Regression Analysis. The results indicate that foreign direct investment and labor does not have a significant direct effect on economic growth, while domestic investment has a negative and significant effect. Trade, proxied by net exports, also shows a negative relationship with growth. Human capital, represented by the Human Development Index, has a negative direct coefficient. However, the interaction between foreign direct investment and human capital is positive and significant, indicating that human capital strengthens the contribution of investment to growth. These findings imply that capital inflows and trade openness alone are insufficient to promote sustainable growth without adequate human capital quality. Policies should therefore integrate investment promotion, trade competitiveness, and human resource development.
Analysis of the Influence of Investment and Human Development on Indonesia’s Economic Growth Tianamel, Sinta; Badriyah, Nurul
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

The volatile nature of Indonesia's economic trajectory and the stark regional imbalances observed between 2015 and 2024 necessitate a rigorous re-examination of developmental catalysts, specifically investment and human capital. This research employs a quantitative methodology utilizing panel data across 34 provinces, processed via multiple linear regression with the Fixed Effect Model (FEM) as the primary analytical tool. Empirical findings demonstrate that Domestic Investment (PMDN) fails to exert a significant impact on growth, pointing toward structural inefficiencies in domestic capital allocation and its disproportionate concentration in specific sectors and geographic hubs. Conversely, Foreign Direct Investment (PMA) and the Human Development Index (HDI) both manifest a positive and statistically significant influence, highlighting the critical roles of technological spillover and workforce quality in driving national productivity. Ultimately, these results imply that achieving a resilient and inclusive economic future for Indonesia depends on a strategic shift toward optimizing investment quality and prioritizing holistic human development.
Development Paradox: The Effect of Economic Growth, Unemployment, and Human Development on Inequality Faisal, Muhammad Faisal; Fitanto, Bahtiar
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Income inequality remains a critical challenge in economic development that can hinder inclusive growth, making this issue urgent to address. This study analyzes the effect of economic growth, open unemployment rate, and the Human Development Index (HDI) on income inequality. The method used is panel data regression with a Fixed Effect model across five districts/cities for the 2015–2024 period. The results show that economic growth does not have a significant effect on inequality, indicating the phenomenon of jobless growth in the tourism and service sectors. Conversely, the open unemployment rate has a positive and significant effect on income inequality. A unique finding shows that HDI also has a positive and significant effect, confirming the phenomenon of elite capture, where the benefits of human development tend to be concentrated in certain groups and regions. As an implication, regional governments need to transform the service sector to be more inclusive, empower MSMEs in areas with high unemployment, and decentralize public facilities to southern regions to encourage a more equitable distribution of income.
Analysis on the Determinants of Indonesia's Economic Growth within the Middle-Income Trap Perspective Firyal, Jasmine; Fadjar, Nurman Setiawan
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Indonesia aims to achieve high-income country status by 2038, yet faces the challenge of falling into the Middle-Income Trap. Previous studies have largely used panel data approaches that cannot distinguish between short-run and long-run effects, and few have specifically examined Indonesia’s domestic innovation capacity using patent data. This study analyzes the determinants of Indonesia’s economic growth from the middle-income trap perspective, focusing on gross fixed capital formation, average years of schooling as a proxy for human capital, and the number of resident patent applications as a proxy for innovation. Using time series data from 1995 to 2024 and the error correction model, the research finds that in the long run, all three variables have a positive and significant effect on GDP per capita. In the short run, only gross fixed capital formation shows a positive and significant effect, while average years of schooling has no significant impact and patents show only weak significance. These findings imply that Indonesia needs a consistent, long-term policy strategy that balances physical investment, human capital development, and domestic innovation ecosystem strengthening to boost Indonesia’s economic growth.
Health and GDRP : How Strong is the Influence of Morbidity on Economics? Almazzaya, Sulthan Razhief; Pratomo, Devanto Shasta
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Public health has an important role in supporting regional economic performance, yet the relationship between morbidity and economic output is not always consistent across regions. This study aims to analyze the influence of morbidity on Gross Regional Domestic Product (GRDP) in districts/cities of East Java during 2010–2022, with Government Health Expenditure, Dependency Ratio, and Labor Force Participation Rate (LFPR) as control variables. The study employs a quantitative approach using panel data from 38 districts/cities in East Java. The analysis method used is panel data regression with the Fixed Effect Model (FEM). The results show that morbidity has a positive and significant effect on GRDP, indicating that the relationship between health conditions and regional economic performance is more complex than predicted by human capital theory. Government Health Expenditure and LFPR also have positive and significant effects on GRDP, while the Dependency Ratio has a negative but insignificant effect. These findings imply that regional economic performance is influenced not only by public health conditions, but also by labor market dynamics, fiscal capacity, and regional economic structures, thus requiring more inclusive and adaptive development policies.
Determinants of Young Work Force Participation in Gig Economy: A Socio-Economic Approach Inayatullah, Faiz; Fazaalloh, Al Muizzuddin
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

The rapid expansion of Indonesia's gig economy offers flexibility but obscures structural vulnerabilities faced by young workers. This study analyses the demographic and socio-economic determinants of youth participation (aged 18–30) in the gig economy, examining whether it serves as a voluntary career choice or a survival strategy. Utilizing microdata from the 2024 National Labor Force Survey (SAKERNAS) with a filtered sample of 12,658 individuals, this research employs a binary logistic regression model to estimate participation probabilities. The findings reveal that participation increases with age within the youth bracket and is significantly higher among individuals with lower educational attainment, challenging the assumption that digital work favors the highly educated. Contrary to urban-centric narratives, rural youth demonstrate a higher probability of becoming gig workers due to limited formal opportunities. Furthermore, household heads and divorced individuals are more likely to participate out of economic necessity, while gender is statistically insignificant. The study concludes that for many Indonesian youth, the gig economy functions as an involuntary fallback option and survival mechanism rather than a path to professional autonomy, implying that formal diplomas are increasingly replaced by algorithmic compliance and digital signalling for vulnerable demographics.
Determinants of Local Government Financial Performance Efficiency Endiyatmo, Daya Tistaresdo; Ananda, Candra Fajri
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Improving the efficiency of local government financial performance is essential for enhancing public service delivery and ensuring sustainable regional development. However, many local governments continue to face challenges related to limited fiscal capacity, dependence on intergovernmental transfers, and inefficiencies in financial management. This study aims to examine the determinants of the efficiency of local government financial performance by analyzing the effects of Local Own-Source Revenue (PAD), capital expenditure, intergovernmental transfers, budget surplus (SILPA), and audit opinions issued by the Audit Board of Indonesia (BPK). A quantitative approach was employed using panel data regression on 38 cities and regencies' governments over the period 2013-2024, resulting in 456 observations. Financial performance efficiency was measured using the ratio of regional expenditure to regional revenue. The findings reveal that PAD, capital expenditure, intergovernmental transfers, and BPK audit opinions have a positive and significant effect on financial performance efficiency, whereas SILPA has a negative and significant effect. These results imply that strengthening local fiscal capacity, optimizing expenditure allocation, and improving financial accountability can enhance the efficiency of local government financial management and support better governance outcomes.
Analysis of Economic and Social Factors Against Social Security in West Java Auza, Tahta Azzera; Suman, Agus
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

This study aims to analyze the influence of economic and social factors on crime in West Java from 2014 to 2024. The variables used include GRDP per capita, poverty, social assistance spending, population density, and average years of schooling. The study used a quantitative approach with a panel data regression method in 27 districts/cities in West Java. The results show that GRDP per capita and population density have a positive and significant effect on crime. Meanwhile, poverty and social assistance spending have no significant effect. Average years of schooling showed a significant positive effect on crime. All variables simultaneously influence crime with an Adjusted R² value of 72.1%. These findings indicate that crime in West Java is more caused by structural factors such as urbanization, population density, and development inequality than absolute poverty. Therefore, local governments need to encourage more inclusive development, economic equality, urban area planning, and strengthening social policies to maintain social security stability.
Influence of Female Labor Force, Digitalization, and Unemployment on Poverty in Central Java Samudra, Ribka Widayati; Syafitri, Wildan
Journal of Development Economic and Social Studies Vol. 5 No. 3 (2026)
Publisher : Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

Poverty in Central Java Province is linked to access to employment, education, and the use of digitalization. Therefore, this study aims to analyze the influence of Female Labor Force Participation (TPAKP), Average Years of Schooling for Women (RSLP), Digital Society Index (IMDI), and Open Unemployment Rate (TPT) on poverty in Central Java. This research is based on a quantitative approach through panel data regression in 35 regions during the 2022-2024 period. The results indicate that women's labor market participation, average years of schooling for women, and digital adaptability are significant, contributing to poverty reduction. Conversely, unemployment is significant and exacerbates poverty. These findings emphasize the importance of inclusive development through strengthening women's roles, equitable access to education, expanding digital literacy, and creating productive employment opportunities as sustainable strategies for poverty reduction in Central Java.