The Impact of Income Inequality, Human Development, Gender Development and Open Unemployment on Economic Growth in Indonesia

https://doi.org/10.56225/ijfeb.v3i2.330

Authors

  • Ira Mulia Safitri Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Banda Aceh, Aceh, Indonesia
  • Apridar Apridar Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Banda Aceh, Aceh, Indonesia
  • Taufiq Carnegie Dawood Department of Economics, Faculty of Economics and Business, Universitas Syiah Kuala, Kopelma Darussalam, 23111 Syiah Kuala, Banda Aceh, Aceh, Indonesia

Keywords:

Economic growth, Income inequality, Gender development index, Open unemployment rate, Human development index

Abstract

Good economic growth reflects equitable income distribution and high labour absorption, leading to job creation. Addressing economic development is a government priority in Indonesia to tackle poverty, inequality, income disparity, and unemployment. This study investigates the impacts of income inequality, human development, gender development, and open unemployment on economic growth in Indonesia using panel data regression from 34 provinces (2015-2022). Data on income inequality, the human development index, the gender development index, and the open unemployment rate are from the Central Bureau of Statistics Indonesia, while economic growth data are from the SIMREG Bappenas. The results indicate that the fixed effects model is optimal. Income inequality, the human development index, and the open unemployment rate negatively and significantly affect economic growth, while the gender development index has a positive and significant effect. This study proposes that the Indonesian government should consider implementing measures to reduce income inequality through taxation policies and enhance education, healthcare, and infrastructure in remote areas.

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Published

2024-06-30

How to Cite

Mulia Safitri, I., Apridar, A., & Carnegie Dawood, T. (2024). The Impact of Income Inequality, Human Development, Gender Development and Open Unemployment on Economic Growth in Indonesia. International Journal of Finance, Economics and Business, 3(2), 120–127. https://doi.org/10.56225/ijfeb.v3i2.330

Issue

Vol. 3 No. 2 (2024): June 2024

Section

Articles

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Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.