Growth, Unemployment and Its Implication on Poverty: Empirical Study in Districts/Cities of South Sumatera Province

Efrianti, Rini; Marwa, Taufiq; Tarmizi, Nurlina; Yuliana, Saadah

doi:10.15604/ejef.2018.06.04.003

Cited by 6 publications

(5 citation statements)

References 19 publications

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“…Similarly, the Keynesian Economics theory is also presented by Eichengreen [15] that applied different factors of macroeconomics to understand the aspects of economics and the methods of employment. As referred to the study of Efrianti et al [14], there are different statements and arguments provided by the authors regarding to the impact and relationship of employment and economic growth that have supported the different aspects of employment and economic growth. Based on the assessment of Soylu et al [32] and Efrianti et al [14], it has been highlighted that the increasing economic growth in any country brings a huge increase in the GDP and labor productivity that can be effective for creating the opportunities for employment in the country.…”

Section: Introductionmentioning

confidence: 99%

“…As referred to the study of Efrianti et al [14], there are different statements and arguments provided by the authors regarding to the impact and relationship of employment and economic growth that have supported the different aspects of employment and economic growth. Based on the assessment of Soylu et al [32] and Efrianti et al [14], it has been highlighted that the increasing economic growth in any country brings a huge increase in the GDP and labor productivity that can be effective for creating the opportunities for employment in the country. Similarly, Chand et al [12] have also supported the fact that the increasing economy can contribute toward the rapid growth of labor force and will ultimately decrease the rate of unemployment in the country.…”

Section: Introductionmentioning

confidence: 99%

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The nexus between the economic growth and unemployment in Jordan

2021

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The main objective of this study is to investigate the impact of unemployment on Jordan's economy over the period 1991–2019. This study used the auto-regressive distributed lag (ARDL) model to investigate the relationship between the unemployment rate and the other variables. Also, we employ the ARDL bootstrap cointegration approach to examine the correlation and long-run relationship among the variables. The empirical finding indicated a long-run relationship between the unemployment rate, economic growth, education, female population, and urban population in Jordan. Our finding shows the negative linkage between economic growth and unemployment, and a positive relationship among the education, female population, and urban population and unemployment in Jordan.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The nexus between the economic growth and unemployment in Jordan

2021

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“…A country needs to have quality human resources that can be used to build and generate prosperity for the country (Erlyn et al, 2021). Increasing government spending on education and health will encourage the improvement of the quality of human resources to increase the ability of the community, especially productive community groups, to access the job opportunities created (Efrianti et al, 2018) Overall, of these four factors, the level of education can be said to be the main factor that can trigger poverty if the quality is not considered. The relationship between these four factors can indirectly cause poverty and unemployment in Palembang City if not resolved quickly.…”

Section: Healthmentioning

confidence: 99%

An Analysis of Urban Poverty and Unemployment

Faturohim,

Akbar,

Hidayat

et al. 2023

J. Bina Praja

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The success of development depicts economic growth. Nevertheless, it is pertinent to emphasize that a significant increase in economic growth may not eradicate poverty, unemployment, and health issues. The prevalence of poverty in Palembang City in 2021 was considerably elevated, amounting to 11.34 percent, while the unemployment rate has exhibited an upward trend, reaching 10.11 percent. Additionally, there was a decline in employment within the labor market, accompanied by a corresponding rise in the number of individuals actively seeking job opportunities. This study aims to examine the various elements contributing to poverty and unemployment and formulate an integrated and sustainable model for poverty reduction and lowering unemployment in urban areas. The data collection technique uses a concurrent mixed method through questionnaires distributed to the public by purposive random sampling of 215 informants and Focus Group Discussions with relevant stakeholders in Palembang City in November 2022. The results of the study found that four factors contribute to poverty in Palembang City: education level, economic growth, health, and labor force participation rate. The level of education is the most dominant factor that plays a role in the occurrence of poverty and unemployment in Palembang City. The strategy formulated is the provision of educational scholarship programs for poor families at the primary and secondary education levels through the utilization of operational costs. It can be concluded that education has a big role in reducing poverty and unemployment, so it is important to invest in education. Investment in education, including improved access and quality of education, can help address issues of poverty and unemployment by giving individuals better opportunities for decent work.

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“…Similar to this, Eichengreen (2020) also presents the Keynesian Economics theory, which applies many macroeconomic considerations to comprehend economic concepts and employment practices. As mentioned in the study by Efrianti et al (2018), the authors have offered a variety of claims and justifications for the many features of employment and economic growth, as well as the influence and interaction between the two. The evaluations of Soylu et al (2018) and Efrianti et al (2018) have shown that growing economic growth in any nation results in a significant rise in GDP and labor productivity, which can be useful in generating job chances for the nation.…”

Section: Empirical Literaturementioning

confidence: 99%

“…As mentioned in the study by Efrianti et al (2018), the authors have offered a variety of claims and justifications for the many features of employment and economic growth, as well as the influence and interaction between the two. The evaluations of Soylu et al (2018) and Efrianti et al (2018) have shown that growing economic growth in any nation results in a significant rise in GDP and labor productivity, which can be useful in generating job chances for the nation. Chand et al (2017) have also provided evidence in favor of the idea that a growing economy might aid in the quick expansion of the labor force, ultimately resulting in a decline in the nation's unemployment rate.…”

Section: Empirical Literaturementioning

confidence: 99%

The influence of unemployment and labor force participation rates on economic development in GCC countries: A cointegration approach

Alam,

Ansari,

Sha

et al. 2023

J. Infras. Policy. Dev.

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This study explores the relationship between GDP growth, unemployment rate, and labor force participation rate in the Gulf Cooperation Council (GCC) countries from 1990 to 2018. Furthermore, the study incorporates control factors such as government spending, trade openness, and energy use into the regression equation. We used panel dynamic ordinary least squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) estimators to investigate the relationships between variables in this investigation. The econometric technique accounts for nonstationary, endogeneity bias and cross-sectional dependencies between country-year observations. Cointegration was found among GDP growth, unemployment rate, and labor force participation. Long-term, the unemployment rate has a statistically significant negative effect on economic growth in the GCC nations. Meanwhile, the labor force participation rate significantly influences economic expansion in the long term. The expansion of government expenditures and international trade reduces economic growth. Alternatively, it is discovered that energy consumption has a substantial and positive effect on economic expansion. Okun’s rule and the unidirectional causality from economic growth to unemployment indicate that the primary cause of unemployment in GCC nations is a failure to adequately expand their economies. When developing economic strategies to reduce unemployment, policymakers are particularly interested in determining whether or not economic development and the unemployment rate are cointegrated.

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Growth, Unemployment and Its Implication on Poverty: Empirical Study in Districts/Cities of South Sumatera Province

Abstract: * An earlier draft of this paper was published as a part of my dissertation. I want to particularly thank to an anonymous referee for critical yet helpful comments and suggestions.

Cited by 6 publications

References 19 publications

The nexus between the economic growth and unemployment in Jordan

The nexus between the economic growth and unemployment in Jordan

An Analysis of Urban Poverty and Unemployment

The influence of unemployment and labor force participation rates on economic development in GCC countries: A cointegration approach

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