The Impact of Poverty and Unemployment on Economic Growth in Indonesia

English

Abstract

This research examines the dangers of poverty in Indonesia and its impact on unemployment
and economic growth. Our research period is 30 years, from 1990 to 2020. We take
secondary data from the World Bank and process it with an autoregressive vector model.
This study will use vector calculations to test the variables, both independent and dependent.
The Dickey-definition Fuller’s of zero will be obtained from the PP analysis. We found that
economic growth suppresses unemployment and poverty. Poverty encourages
unemployment growth and suppresses economic growth in Indonesia. Poverty is very
detrimental to the Indonesian economy because it causes unemployment to increase and
economic growth to decline. Economic growth is very important for Indonesia because it
can create new jobs to reduce the rate of growth of unemployment and reduce poverty.