Splash Magz

The Influence of Inflation and Unemployment on the Indonesian Economy: VAR Approach

Erlen Berliantina Kusumasari — 2023-03-06

This paper will examine the effect of inflation on economic growth, as well as its impact
on the unemployment rate Indonesia Country. The research data was obtained from
World Bank sources and measured the period 1997-2020. We use inflation, GDP and
unemployment as research variables. Furthermore, the data will be tested and analyzed
using the Vector Autoregressive (VAR) model. We find that inflation in the past had an
influence and impact on current economic growth. The increase in inflation tends to
reduce and hinder the country's economic growth. In addition, the historical inflation rate
has a detrimental effect on the current unemployment rate. On the other hand, the
historical unemployment rate and current GDP economic growth have an interesting link.
However, since they are inversely correlated, GDP growth has a negative effect on the
unemployment rate, causing a decline in the current rate of unemployment to occur after
an increase in past growth. Along with reducing inflation, supportive policies for
economic growth must be taken into account by policymakers. Additionally, Indonesia's
unemployment rate will be minimized and decreased with maximal economic
development.

The Correlation Role of Carbon Emissions and Renewable Energy and Their Impact on Economic Growth in Indonesia

Adrid Ascarya Mugand — 2023-03-06

Carbon emissions and renewable energy use will be evaluated to see how they affect
Indonesia's GDP development. For this study, we rely on information from the World
Bank that covers the years 1991 through 2020. Researchers employ carbon dioxide
(CO2) emissions, renewable energy (RE) consumption, and GDP as independent
variables. Vector autoregressive (VAR) analysis was performed on these variables. As a
result of higher emissions in the past, the trend of carbon emissions is currently upward.
Consumption of renewable energy sources, on the other hand, has contributed to
economic expansion in the past. If there is a positive association, it will aid in the creation
of a sustainable economy. The continued growth of renewable energy is something that
should be encouraged through regulations that promote its use. Direct investment is one
example of a macroeconomic policy that has to be supported and harmonised with energy
efficiency programmes to ensure both economic development and environmental
sustainability.

Education and Economic Growth and the Role in Controlling Unemployment in Indonesia

Gusni Ariansyah — 2023-03-06

The purpose of this research is to find and analyse the relationship between education
and unemployment in Indonesia. This analysis makes use of World Bank information for
the years 1996-2020. The GDP, the unemployment rate, and the level of education are
used as independent variables. The VECM (Vector Error Correction Model) was used
for the testing. The findings indicate that a rise in educational attainment is inversely
related to the unemployment rate. Unemployment rates tend to fall as the economy
expands. The unemployment rate in Indonesia can be lowered if the country's education
system is strengthened. The Indonesian government, as a policymaker, must provide
educational opportunities for all citizens of the country. The policies for long-term
economic growth will benefit from this. As a result, this will serve to moderate and
ultimately lower Indonesia's high unemployment rate.

Education, GDP and Their Role in Poverty in Indonesia: VECM Analysis

Hardy Dharmawan Prayogo — 2023-03-06

The purpose of this investigation was to examine how progress in education and the
economy have affected poverty levels in Indonesia. For Indonesia, we utilise World Bank
information for the years 2000-2019. The levels of poverty and education are used as
independent variables. Additionally, Vector AutoRegressive (VAR) is used in the testing
process. The data indicated that higher levels of education correlate with lower rates of
joblessness. In addition, there is a link between higher levels of education and economic
development in Indonesia. The current high poverty rate in Indonesia is a consequence
of earlier low poverty rates. The quality of education is a key indicator of economic
development in Indonesia, thus policymakers should develop effective plans and
programmes to that end. The poverty rate in Indonesia will decrease thanks to this
programme.

The Impact of Health Spending on CO2 Emissions and Economic Growth in Indonesia: A VECM Analysis

Siti Yasikah — 2023-03-06

The study's overarching objective is to examine the impact of healthcare expenditures on
carbon emissions as a means of bolstering Indonesia's economy. The World Bank was
consulted for its database covering the years 2000-2019 in Indonesia. Current health
expenditure, carbon emissions, and gross domestic product are the variables that will be
put through the VECM test. Previous Health spending was associated with lower levels
of carbon emissions. The opposite is true for carbon emissions, which rise as GDP rises.
The health budget in Indonesia is positively correlated with the country's GDP.
Policymakers in Indonesia can have a favourable effect on the country's economic growth
by prioritising the increased allocation of expenditure on quality health care. In addition,
the correlation between current healthcare expenditures and CO2 emissions only goes in
one direction. The reason for this is that although emissions have no influence on health
care costs, the opposite is true.

How Inflation and Carbon Emissions Influence Renewable Energy in Indonesia: Evidence from VECM

Nugroho Guntur S — 2023-03-06

The purpose of this investigation was to examine how rising prices and carbon emissions
affect the spread of renewable energy sources in Indonesia. The range of 1997-2020 was
derived using data collected from the World Bank. Inflation, carbon emissions, and
renewable energy sources are the independent variables put through the VECM's paces.
Based on the findings of this research, it can be concluded that higher rates of inflation
in the past have contributed to a rise in Indonesia's carbon emissions. But a positive
connection and link between REN and INF exists, and it's a fascinating one to consider.
Carbon emissions and renewable energy, on the other hand, cancel each other out. When
emissions of carbon dioxide rise, renewable energy sources suffer, and vice versa. There
needs to be a greater push from policymakers to rein in inflation. Carbon emissions can
be mitigated by the implementation of renewable energy sources.

Exports, FDI, and Inflation in Indonesia: A Dynamic Relationship

Romadhona Kisno S — 2023-03-06

The purpose of this study was to examine exports and FDI's impact on inflation in
Indonesia through testing and analysis. The information utilised in this analysis was
collected from the World Bank from 1997 to 2020. In this analysis, we employ Vector
AutoReggressive (VAR) to examine the relationships between exports, FDI, and
inflation. This research found that previous Indonesian exports influenced FDI in a
favourable way. However, there is a positive correlation between rising exports and rising
inflation. High inflation in the past contributed to the current inflation. The rise in exports
that transpired was aided by inflation. However, rising prices would have a chilling effect
for FDI. Thus, policymakers need to devise a plan to circumvent inflation regulation. In
addition, a strategic plan is implemented to increase exports and FDI. The Indonesian
government, however, confronts difficulties in expanding FDI and exports without
spiking inflation.

The Effects of Migration and Remittances on Economic Development in Egypt

Ima Kusdiana Kurniasari — 2023-03-06

This piece delves at how migration and remittances have affected economic growth in
Egypt, a large nation in North Africa and the Middle East with a rich history of both.
According to the World Bank figures used in this article, in 2020 Egypt received an
anticipated $29.6 billion in remittances, which is equal to 8% of its GDP. The article also
summarises the research on how migration and remittances have helped or hurt the
economies of countries of origin in terms of poverty reduction, human capital
development, and overall economic growth. To further evaluate the impact of PR on FDI,
IT, and the article itself, the authors employ a vector autoregression (VAR) model. A
positive and substantial effect of PR on PR is found, as is a negative and significant effect
of PR on FDI, but no significant effect of PR on IT is found. The essay concludes that
policymakers in Egypt should take a balanced and context-specific approach to
maximising the advantages and minimising the costs of migration and remittances due to
their complicated and varied effects on economic growth.

The Role of Institutions in Economic Development in Hong Kong

Prasetyo Utomo — 2023-03-06

This article uses Hong Kong as a case study to analyse the impact of institutions on
economic growth. The Chinese territory of Hong Kong is a special administrative area
with its own government and a free market economy. Since it went from being a modest
fishing town to a worldwide financial and commerce centre in less than a century, Hong
Kong is often held up as an exemplary model of economic growth. The rule of law,
government, and economic climate in Hong Kong are all examples of the city's renowned
institutional excellence. This article summarises research on the notion, categorization,
and effect of institutions on economic growth from both a theoretical and empirical
perspective. To further evaluate the impact of government spending (GG) on government
financial condition (GFC), regional development expenditure (RDE), and itself, a vector
autoregression (VAR) model is employed in this paper. The article concludes that GG
significantly affects itself and GFC positively, but has a negative effect on RDE.
According to the article's findings, Hong Kong's institutions are very influential in the
city's economic results and performance, and policymakers should take a nuanced,
context-aware approach to enhancing their quality and efficacy.

The Impact of Trade liberalization on Economic Growth in Indonesia

Awaludin — 2023-03-06

Using a vector autoregression (VAR) model, this article explores how trade liberalisation
has affected GDP growth in Indonesia. Tariffs, quotas, subsidies, rules, and standards are
all examples of trade barriers that may be loosened or eliminated through the
liberalisation of trade. When trade restrictions are lifted, economies flourish and people's
incomes are more evenly distributed. However, the size and direction of these impacts
are contingent on a number of variables, including the starting conditions, the depth and
velocity of liberalisation, the supplementary policies, and the external environment. So,
the results of trade liberalisation are neither simple or consistent, but rather variable and
diverse. Both positive and negative outcomes associated with trade liberalisation on GDP
growth and income distribution are discussed in this article. The impact of government
expenditure (GG) on trade openness (Tr), the poverty headcount ratio (PHR), and the
article itself is estimated using a VAR model. According to the data presented here, GG
has no noticeable effect on itself or Tr but a notable and beneficial effect on PHR. The
article concludes that trade liberalisation affects economic growth and income
distribution in Indonesia in complex and heterogeneous ways, and that policymakers
should take a holistic and context-specific approach to designing and implementing trade
policies that can maximise the benefits and minimise the costs of trade liberalisation.

The Impact of Air Pollution, Health, Productivity on Welfare in Indonesia

Nuri Maulana Ikhsan — 2023-03-06

This article examines the impact of air pollution on health, productivity, and welfare in
Indonesia, using a vector autoregression (VAR) model. Air pollution can cause various
diseases and deaths, reduce labor supply and output, increase health care costs, and lower
quality of life. Indonesia is one of the developing countries that suffers from high levels
of air pollution, especially in urban areas. The main sources of air pollution in Indonesia
are forest fires, transportation, industry, power generation, and household burning. The
article reviews the current evidence on the health, productivity, and welfare effects of air
pollution in developing countries. The article also applies a VAR model to estimate the
effect of government consumption expenditure (GCG) on PM2.5 concentration (REC),
labor force participation rate (LFP), and health expenditure per capita (CHE). The article
finds that GCG has a negative and significant impact on itself, no significant impact on
LFP, and positive and significant impacts on REC and CHE. The article concludes that
air pollution has complex and heterogeneous effects on health, productivity, and welfare
in Indonesia, and that policy makers should adopt a comprehensive and context-specific
approach to reduce air pollution levels and protect vulnerable populations.

The Challenges and Opportunities of Digital Transformation and E-Commerce in Europe & Central Asia

Sigid Bayu Sudarmaji — 2023-03-06

This paper explores the opportunities and challenges of digital transformation and e-commerce
for small and medium enterprises (SMEs) in Europe and Central Asia (ECA). The paper
reviews the literature on the benefits and barriers of digital technologies and e-commerce
platforms for SMEs, and analyzes the data from a cross-sectional survey of 1,000 SMEs in
ECA. The paper uses a vector autoregression (VAR) model to examine the causal relationships
between customer-based strategy (CBS), e-commerce adoption, and SME performance
indicators. The paper finds that digital transformation and e-commerce have positive effects on
SMEs’ sales growth, profitability, productivity, and innovation. However, the paper also
identifies several challenges that hinder SMEs’ digital transformation and e-commerce, such
as high costs, security risks, regulatory barriers, skills gaps, and competitive pressures. The
paper suggests some policy recommendations to support SMEs’ digital transformation and ecommerce in ECA, such as providing financial incentives, enhancing cyber security,
harmonizing regulations, developing digital skills, and fostering collaboration.