Convergence : The Journal of Economic Development
Vol.4 No.2 (2022)-IN PRESS

Pembuktian Okun’s Law dalam Pertumbuhan Ekonomi di Indonesia

Esti Pasaribu (Universitas Bengkulu)



Article Info

Publish Date
30 Dec 2022

Abstract

This study aims to prove whether Ókun's Law is proven to occur in Indonesia. Okun's Law  states that there is a relationship between economic growth and unemployment where the percentage increase in economic growth will be offset by a greater change in the unemployment rate, where the relationship between the two variables is negative. The data used in this study are secondary data obtained from BPS. The data taken are economic growth, unemployment rate, and inflation rate in Indonesia for the period 1990-2021. The data was processed using Ordinary Least Square (OLS) analysis to obtain the regression coefficients. Research finds a negative relationship between inflation and economic growth on the unemployment rate. Thus, Okun Law applies in Indonesia where unemployment tends to increase in line with economic growth.   Keywords :  Economic Growth1, Unemploymnt Rate2, Inflation 3

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Journal Info

Abbrev

convergence-jep

Publisher

Subject

Economics, Econometrics & Finance Environmental Science Social Sciences

Description

Convergence: The Journal of Economic Development is focused on publishing research articles in the field of economics, both theoretically and empirically covering development economics, macroeconomics, microeconomics, industrial economics, public economics, monetary economics, natural resource ...