This study aims to investigate the pattern of dynamic relationships between energy consumption, economic growth, and poverty in panel data set of 12 provinces of Eastern Indonesia during the period 2009-2019. PVECM and FM-OLS were applied to analyze the dynamic link of the variables both in the short and long term. All secondary data used were collected from BPS and the Ministry of Energy and Mineral Resources. The results of this empirical study in the short term corroborate the neutrality hypothesis, which reveals that there is no short-term relationship in the case of energy-growth nexus, energy-poverty nexus, and poverty-growth nexus. In the long term, empirical evidence corroborates the feedback hypothesis in the case of the energy-growth nexus and poverty-growth nexus. Concerning the long-run energy-growth nexus, the increase in energy consumption has a positive effect on the acceleration of economic growth, and also the increase in economic growth requires the fulfillment of adequate energy consumption. Furthermore, a feedback relationship is found in the poverty-growth nexus case which explains that the progress of poverty reduction is significantly determined by sustainable economic growth that supports several previous studies and the trickle-down economics argument or pro-growth-poverty. On the other hand, widespread poverty has a negative impact on the achievement of economic growth.
Purpose of the study: Firstly, to construct a modified human development index by incorporating new dimensions (democracy and employment). Secondly, to measure and compare human development progress in Indonesian provinces. Thirdly, to examine the nexus between human development, economic growth, and democracy during the period 2010-2017. Methodology: Principle Component Analysis (PCA) method is employed to combining components into one index (composite index) which we call MHDI. The panel simultaneous equation model is applied to examine the nexus between human development, economic growth, and democracy. Main Findings: There were significant ranking differences between MHDI and HDI-UNDP in 24 provinces of 33 Indonesian provinces. The most significant ranking differences were found in several provinces, especially Maluku, West Java, Central Java, East Java, and Central Kalimantan. The study found a strong two-way relationship between human development and economic growth as well as between human development and democracy. Applications of this study: This study recommends that human development policies supported by rapid economic growth and democratic stability should be one of the development priorities through government spending and support from private investment (the private sector) which focuses on the development of education and health infrastructure throughout the Indonesian province. Novelty/Originality of this study: This study employs different methods for constructing a human development index by incorporating a new dimension (democracy and employment).
Poverty alleviation in Indonesia is strongly influenced by other economic variables. The three main factors used to measure its effect on poverty are economic growth, unemployment and inflation. This study aims to examine and analyze the relationship between theoretical and empirical balance between economic growth, unemployment rate and inflation rate with poverty in Indonesia both in the short and long term. The estimation method used is a dynamic econometric model with the cointegration approach and the Error Correction Model (ECM). The results of this study indicate that the equation model used has cointegration relationships and long-term balance between variables. The estimation results show that there is a short-term effect of economic growth, the unemployment rate and inflation on poverty, while in the long term economic growth and the unemployment rate have a significant effect, while inflation is not significant.
The aim of this research is; 1) To test and analyze the influence of local government spending towards economic transformation has occurred, the transformation of labor, per capita income and population migration This research was conducted in the province of Maluku, by taking data on the eight districts of the city for five years. The data were analyzed panel data, and testing was conducted using structural equation modeling.The results of structural equation analysis shows that government spending affect the transformation of the economy, per capita income and immigration, but no direct impact on the transformation of the workforce. Investment effect on economic transformation, the transformation of labor, per capita income and population immigration. Economic transformation effect on the transformation of labor, per capita income and population immigration. Labor transformation effect on per capita income, but does not affect the immigration population. Per capita income affect the immigration population in the province of Maluku.
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