The Impact Of Unemployment Rate, Labor Force, Capital, Inflation Rate, And Government Expenditure On Economic Growth In Indonesia

Abstract

This study was conducted to examine the effect of unemployment rate, labor force, investment, inflation rate, and government expenditure on economic growth in Indonesia in the long term and short term for the period 1986-2015. This research uses cointegration and Error Correction Model (ECM) method. The results of ECM treatment with EViews 8 indicate that the unemployment rate and capital have significant positive effects, labor force and inflation rate have significant negative effects, and government expenditure has an insignificant effect on economic growth in Indonesia within the study period.