The Effect of Inflation, Unemployment and Population Growth on Economic Growth in Indonesia
DOI:
https://doi.org/10.35334/hw0v9b51Keywords:
Inflation, Unemployment, Population Growth, Economic GrowthAbstract
This study aims to identify the effect of inflation, unemployment and population growth on the country's economic growth. The study recommends several important policies on inflation, unemployment and population growth in Indonesia's economic growth. In this study, the "ordinary Least Square (OLS) method was used with different diagnostic tests to determine the suitability of the data in the investigation and the data were collected from 1991 to 2021. Econometric results show that the time series are stationary because t-statistic values are more than t-tables and values are also significant. The term error in ADF is significant and ensures a long-term relationship. ECM results show that inflation, unemployment, and population growth are approaching equilibrium. The results of multiple linear regression showed that inflation, unemployment and population growth were not statistically significant. There were no symptoms of multicollinearity, heteroscedasticity and autocorrelation in the study so that it showed determination in estimation, unbiased and consistent.
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