Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic

Threshold Levels of Poverty and Unemployment Rates on Economic Growth in Indonesia during COVID-19 Pandemic

Blog Article

During the COVID-19 pandemic, poverty and unemployment rates obstruct economic growth in Indonesia.Therefore, this study examines the threshold levels of poverty and unemployment rates on economic growth for 34 Kits and Trays - First Aid Kits provinces in Indonesia in 2020 and 2021.Cross-section threshold regression is employed.Besides, the robustness check sets a non-linear cross-section regression.The findings reveal that threshold poverty rates in 2020 and 2021 were about 13.

97% and 6.38%, respectively.At the same time, threshold unemployment rates were about 3.09% and 4.71%, respectively.

Poverty and unemployment rates contributed significantly under U-shape in 2021 and 2020, respectively.The local government can emphasize lower poverty and unemployment rates to enhance economic growth foot plug in the long-term.