Determinants of poverty in indonesia through the error correction model (ECM) approach

Rusneni 1, Retno Fitrianti 2, Andi Dyna Riana 3, *, Muliana 4, Hikmah 5, Harmansyal 6, Syafri 7, Rahmawati Rahman 7, S. Kamran Aksa 7 and Emil Salim Rasyidi 7

1 Department of Urban and Regional Planning, Faculty of Engineering, Bosowa University of Makassar, Indonesia.
2 Department of Economic Science, Faculty of Economics and Business, Hasanuddin University of Makassar, Indonesia.
3 Department of Agrobussiness, Faculty of Fisheries, Cokroaminoto University of Makassar, Indonesia.
4 Department of Management, Faculty of Economics and Social Sciences, Fajar University of Makassar, Indonesia.
5 Department of Building Engineering Education, Faculty of Teacher Training and Education Science, Nusa Cendana University of Kupang, Indonesia.
6 Department of Urban and Regional Planning, Faculty of Applied Science and Planning, Karyadarma University of Kupang Indonesia.
7 Department of Urban and Regional Planning, Faculty of Engineering, Bosowa University of Makassar, Indonesia.
 
Review
International Journal of Life Science Research Archive, 2023, 05(01), 069–075.
Article DOI: 10.53771/ijlsra.2023.5.1.0078
Publication history: 
Received on 22 June 2023; revised on 28 July 2023; accepted on 31 July 2023
 
Abstract: 
Poverty is a classic problem faced by developing countries including Indonesia. An increase in poverty will reduce the welfare of the Indonesian people. This study aims to determine the effect of unemployment and inflation on poverty in Indonesia. The results of the ECM analysis show that unemployment has a significant effect on poverty in the short term and long term in Indonesia while inflation has an insignificant effect on poverty in the short term and long term in Indonesia.
 
Keywords: 
Unemployment; Inflation; Poverty; ECM
 
Full text article in PDF: