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The Effect of Unemployment, Dependency Ratio, and Poverty on Gross Domestic Product Growth in Indonesia

Authors
  • Muhammad Zafran Department of Economics Development, Faculty of Economics and Business, Universitas Sumatera Utara
  • Sirojuzilam Hasyim Department of Economics Development, Faculty of Economics and Business, Universitas Sumatera Utara
Issue       Vol 8 No 1 (2025): Talenta Conference Series: Local Wisdom, Social, and Arts (LWSA)
Section       Articles
Section      

Copyright (c) 2025 Talenta Conference Series

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Galley      
DOI: https://doi.org/10.32734/lwsa.v8i1.2410
Keywords: GDP unemployment dependency ratio poverty ARDL
Published 2025-02-28

Abstract

This study aims to analyze the effect of unemployment, dependency ratio, and poverty on Gross Domestic Product (GDP) in Indonesia in the context of demographic transition during the period 1990-2022. The demographic transition in Indonesia is characterized by changes in the age structure of the population which has an impact on the country's economic dynamics. The research method used is Autoregressive Distributed Lag (ARDL), which allows the analysis of short-run and long-run relationships between the independent variables (unemployment, dependency ratio, and poverty) and the dependent variable (GDP). The results of this study also show that the independent variables (unemployment, dependency ratio, and poverty) have a significant effect on GDP in Indonesia both partially and simultaneously during the period 1990-2022.